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Madagascar stakes claim as outsourcing hub

New year, new territories claiming to be an excellent outsourcing hub – this time, according to Quartz, it’s Madagascar’s turn. The island has very fast Internet indeed it seems (therefore it can’t be using the same Internet provider as Intelligent Sourcing’s editor) and this has fuelled a bit of a boom.

There are now 233 BPO companies in Madagascar from nearly none in 2005. Most are based in in the capital, Antananarivo, and accounts say the sector employs around 15,000 people.

This means it’s clearly a long way from becoming an India or a Philippines, but this doesn’t actually matter; the question is whether it’s sustainable and whether the clients make decent savings without making sweat shops. In an environment in which a salary of $130 a month gets you a decent lifestyle, the maths certainly adds up. It’s one we will be watching in 2019.

(The editor appreciates that the image to illustrate this story is slightly random, but it was all he could do to restrain himself from using a cartoon lion).

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