Shortage of skilled professionals in specialised areas such as Artificial Intelligence and cyber security are potential obstacles to the outsourcing sector’s expansion, the Human Capital Providers Association of Nigeria (HuCaPAN) has said.
The association equally said challenges of inadequate infrastructure, including unreliable power supply and inadequate transportation network are impeding the sector’s growth.
HuCaPAN President Dr. Olufemi Ogunlowo, who said this during the association’s 12th yearly general meeting in Lagos, said the industry currently employs over 4.5 million Nigerians, in the country and abroad, with about N2 trillion allocated to salaries and other expenses yearly.
Highlighting how harsh the business environment had been, Ogunlowo said the industry was significantly impacted by the floatation of the Naira and the removal of fuel subsidies.
These, he said, increased the cost of operations for outsourcing companies in Nigeria and also impacted foreign investors’ confidence in the sector.
The increased cost of operations lower foreign investors’ confidence and declining market share, the HuCaPAN chief said, have led to downsizing and layoffs in many outsourcing companies.
According to him, it has equally affected the competitiveness and market share of Nigerian outsourcing companies. To this end, he said policymakers and industry stakeholders needed to address the issues and implement measures to support the growth and sustainability of the sector in Nigeria.
He revealed that the Federal Government has approved its application to be registered as an employers’ association under the Trade Unions Act.
Consequently, Ogunlowo, said the association’s name has been changed from HuCaPAN to the Employers’ Association for Private Employment Agencies of Nigeria (EAPEAN).
While the new status brings numerous benefits and responsibilities, he urged members’ support to make it worthwhile.
