Africa thinks that it could be a major new area for IT outsourcing, despite challenges to making it happen.

According to PC World, Egypt, Ghana, Nigeria, Senegal and South Africa are starting to market themselves aggressively, hoping to capitalise on the mounting costs of Indian companies.

Mindy Blodgett, analyst, enterprise research, business process outsourcing strategies, at Yankee Group said that while India is going to remain the offshore outsourcing leader, it is losing ground.

Africa has the advantage of being in a better time zone when dealing with European customers, but needs a better educated workforce, better power supplies, telecommunications, more stable governments and better transport infrastructure.

However, many of those problems are close to being resolved in Egypt, Ghana, Nigeria, Senegal and South Africa and these are starting to win bigger contracts, say the analysts. X

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