Guide – AI Readiness in the BPO and ITES Sector in Africa

Based on the report by the Mastercard Foundation, Caribou Digital, and Genesis Analytics

The BPO/ITES sector (Business Process Outsourcing and Information Technology Enabled Services) is experiencing rapid growth in Africa. More than one million people are currently employed in the industry, and this number could increase fivefold in the coming years. But a major transformation is already underway: the integration of Artificial Intelligence (AI).

This shift raises a double challenge: how to harness AI’s potential to improve productivity and create new opportunities, while limiting the risks of massive automation particularly for youth and women?

This guide provides a summary of the key insights from the report co-authored by Caribou Digital and Genesis Analytics for the Mastercard Foundation.

Africa’s Potential in BPO/ITES

If Africa captures just 10 additional percentage points of global market share, it could generate up to 5 million direct jobs and 7 million indirect jobs. Countries such as Kenya, Morocco, Madagascar, South Africa, and Rwanda are already positioning themselves as competitive outsourcing hubs.

However, AI could disrupt this trajectory. Many repetitive tasks historically assigned to service centers are increasingly automatable. The question is not if AI will have an impact, but how Africa can prepare to turn this challenge into an opportunity.

The Four Dominant Job Families

The African BPO/ITES sector revolves around four main job families, representing 85% of employment:

• Customer Experience (44%): call centers, customer support, relationship management.
• ITES Services (25%): technical support, software development, database management.
• Finance and Accounting (13%): bookkeeping, payroll, financial back-office.
• AI Data Services (3%): annotation, labeling, data management for AI.

Each of these job categories will be affected differently by AI. Entry-level customer experience roles are the most exposed to automation, while ITES services offer more potential for augmentation (AI complementing human work).

Automation and Its Impacts

The figures are clear:

• 52% of junior-level tasks are automatable.
• Only 4% of senior-level tasks are automatable.

This means that young workers, who make up the bulk of junior positions, are the most vulnerable. In contrast, mid-level and senior roles, which are less exposed, stand to benefit from AI as a decision-support and productivity-enhancing tool.

Women appear particularly at risk: they are 10% more exposed to automation than men, as they are overrepresented in junior-level customer support roles.

AI in the Daily Lives of Young Workers

Contrary to popular belief, young Africans in the BPO/ITES sector are not waiting passively for AI to arrive they are already using it. Tools like ChatGPT, GitHub Copilot, and internal chatbots are integrated into their daily work for coding, writing, research, and client support.

For many, AI is perceived as a virtual assistant that saves time, boosts productivity, and fosters creativity. But it also raises concerns about job stability.

Automation vs. Augmentation

The report highlights an essential distinction:

• Automation: AI replaces human tasks.
• Augmentation: AI enhances human capabilities.

The future of African BPO will depend on companies’ ability to prioritize augmented AI models where humans remain central over aggressive automation.

Scenarios and Risks

The report outlines a “stagnant progress” scenario that could slow AI adoption in Africa, due to:

• Technological constraints (lack of infrastructure).
• Ethical and regulatory limitations.
• Social pressures related to employment.

These barriers may slow adoption, but they also provide a window to better prepare talent for AI integration.

Opportunities for Mid-Level and Senior Roles

While junior roles are most at risk, more experienced positions can leverage AI to their advantage. In ITES services, for example, over 60% of work can be augmented by AI: system monitoring, troubleshooting, and automated maintenance. These shifts enable workers to focus on strategic and creative tasks.

Key Recommendations from the Report

To turn AI into a driver of inclusive growth, the report proposes several actions:

• Invest in training: upskilling and reskilling, with emphasis on digital and AI skills.
• Anticipate labor markets: develop regional forecasting tools to balance supply and demand.
• Build a fair framework: ensure AI workers are protected and enjoy decent working conditions.
• Develop sustainable AI hubs: strengthen infrastructure and support local innovation.
• Include rural and peri-urban areas: promote decentralized BPO models that benefit youth outside major cities.

The African BPO/ITES sector stands at a historic crossroads. AI represents both a risk of rapid automation of junior roles and a tremendous opportunity to create new, higher-value roles.

The key lies in a clear strategy:

• Massively train youth and women.
• Encourage augmented AI rather than replacement AI.
• Invest in inclusive and sustainable models.

If these conditions are met, Africa will not only withstand the AI shock but also emerge as a major player in global outsourcing.

FAQ – AI Readiness in BPO and ITES in Africa

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