Thursday 26th August 2010

The business process outsourcing (BPO) sector is seeing growth in the domestic market, driven by the massive drop in call tariffs as telecoms firms engage in price wars.
“Since the price wars began last week, we have already signed two domestic clients — a bank and an insurance company — purely because the telecommunications charges now make sense,” Mr Nicholas Nesbitt, the chief executive of Kencall told Business Daily.
Zain last week made a permanent cut on its tariffs by 50 per cent, allowing subscribers to call across all networks at three shillings, a move that was soon replicated by Yu.
Taking cue, Safaricom also issued an offer that has seen its non-net and off-net tariffs start at two and three shillings respectively.
On Wednesday, Telkom Kenya introduced a permanent record low on-net tariff of two shillings and revised off-net charges by half to four shillings.
“It is still more than twice as expensive for us to call domestically than for us to call a client’s customer in the UK, but things are suddenly looking much better. Historically, our domestic clients would pay more for the telephony charges when they outsourced work to us than they paid for our staff time. That was ridiculous,” Mr Nesbitt said.

Article By Victor Juma for Business Daliy

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