Only about 10% of roles in the sector are fully resistant to automation. This change is already influencing how startups and freelancers work with technology today.

I’ve spent months talking to founders, freelancers and labour specialists across the continent. What’s obvious is that this change is not hypothetical but real, it’s now, and it’s enhancing how entrepreneurs think about labour, expense and productivity.

The Outsourcing World in Africa

For over a decade, African countries have built thriving outsourcing sectors. Nations such as South Africa, Egypt, Kenya, Nigeria and Ghana host business process outsourcing (BPO) and IT services that serve clients worldwide. 

These industries employ millions and are expected to generate tens of billions of dollars by the end of the decade.

But this model is evolving.

Where once the biggest business challenge was reducing labour expenses to compete with India or the Philippines, now founders ask: “Can a subscription to a suite of tools do the work of a junior employee?”

Outsourcing was built on the premise that labour could be bought cheaply abroad. That premise is under pressure.

What it Means to Call AI an “Affordable Employee”

I’m going to use the term “affordable employee” deliberately. I’m not talking about futuristic humanoid robots. I’m talking about software and automation systems that can perform tasks humans traditionally did, reliably, quickly and at low cost.

These systems can:

• Draft text, emails and reports.
• Create and optimise digital content.
• Generate slides, summaries and data insights.
• Help with coding and debugging.
• Answer customer questions and route support tickets.

You might already be using these to draft content, automate replies or pull insights from spreadsheets.

That’s what we mean by an “affordable employee”: a tool that can do work for you, now, without the recurrent cost of a full-time staff member.

Where This is Already Happening Today

Many African freelancers and founders are not waiting for the future. They are using these systems as daily tools.

Data shows that up to 64% of African workers used AI tools last year, and a large majority say these tools improved their work and productivity.

Freelancers in Lagos and Nairobi tell me they use these systems to speed up work that once took hours:

• Drafting articles, proposals and business plans.
• Managing customer interactions.
• Cleaning and analysing data.
• Generating code snippets and automating testing.

Startups usually lack deep pockets. They cannot afford to outsource multiple tasks abroad. They must be lean, and that leanness is powered by software.

Can Software Really Replace Human Tasks?

Look at the outsourcing sector’s own data. By 2030, research shows:

• Up to 40% of tasks in Africa’s tech outsourcing sector could be automated.
• Only 10% of roles are currently fully resistant to automation.

This doesn’t mean robots will take every job. It means that four in ten discrete tasks, like answering routine customer questions, entering data or creating templated documents, are ripe for software replacement.

For workers in entry-level roles, especially women and young people, this is real and present. Studies reveal that women’s tasks are on average 10% more vulnerable to automation than those of men because of occupational patterns.

For founders in Africa’s AI sector, however, this brings out a dual truth.

One side is disruption.

The other is opportunity.

What Machines Handle Better (Today)

Software is already better than humans at:

• Repetitive tasks: filling forms, generating templated responses, sorting data.
• High-volume content production: bulk drafting and summarising.
• Rule-based work: routing emails, notifications, reminders.
• Pattern detection at scale: simple analytics without deep manual effort.

This is why many African startups integrate automation into customer experience, project management and internal operations.

It saves time. It reduces errors. It costs a fraction of a junior salary. That’s why many founders refer to these tools as digital assistants, workflow partners, or even part-time employees.

Where Humans are Still Important (And Will for Years)

There are tasks that software cannot replace:

• Complex judgement: strategy, negotiation, nuanced decision-making.
• Emotional intelligence: handling delicate customer issues, team leadership.
• Cultural nuance and local context: interpreting local languages, customs, and social cues.

These are the areas where founders and workers still take over, and will do for the foreseeable future.

Software can suggest a response, but it still takes a human to choose wisely.

Leveraging the Shift Without Losing Out

Here’s the pragmatic view I’ve formed:

• Software is not a replacement for all labour, but it can replace many tasks human workers once handled manually.
• For lean startups, embracing these tools is essential for growth.
• For freelancers, mastering automation tools is becoming a competitive advantage.
• For the wider workforce, upskilling is essential. Governments and companies across Africa are investing in training programmes to help workers move into higher-value roles as automation grows.

These are not distant issues. They are happening now.

A New Definition of the “Affordable Employee”

We shouldn’t be asking whether software can fully replace a human. It’s whether it can perform tasks at a fraction of the cost, with high reliability, and integrate into everyday workflows.

For many African startups and freelancers, the answer today is yes, for specific tasks, at least.

We are witnessing a transition where tech is an operational partner. It is how work is getting done in Lagos, Johannesburg, Nairobi and Accra, among other cities.

And it is challenging what “employment” and “labour” mean in the 2020s.

Helping organisations to optimise processes and save costs, outsourcing has evolved alongside the market and enterprise expectations. It is now smarter, says McKinsey, as companies outsource to ‘capitalise on more sophisticated provider offerings’ and thereby open their corporate doors to advanced digital solutions such as AI, robotics, automation, analytics and machine learning.

It also, reminds Mandla Mbonambi, CEO of Africonology, of a strategic way for organisations to remain focused on their core business operations and activities while trusting services and solutions to the capable hands of a trusted service provider.

“Outsourcing can be an invaluable asset,” he continues. “However, it needs to be approached with realism. No solution or service is without its pros and cons, and outsourcing is no different. For an organisation to benefit from an outsourcing partnership, it needs to understand both the benefits and the drawbacks of this approach to ensure value is created.”

The benefits are significant and long-term, particularly if the relationship between the service provider and the company is solid.

Then, benefits such as lower labour costs and reduced labour risks, will be felt by the organisation over the long term.

When a company opts into outsourcing from a service provider to undertake specific tasks, it doesn’t need to hire permanent consultants or skilled employees to bolster its capabilities.

Instead, the service provider steps in with a full crew complement populates short- and long-term projects with the right talent and removes the risks that accompany the management, hiring and engagement of staff.

“The company outsourcing the work doesn’t have to worry about employment benefits, packages or retention, they just hand those problems over to the service provider,” says Mbonambi. “This approach also allows for organisations to focus more on the core of their business while non-core, yet essential, roles and projects are managed externally within specific timelines and budgets.”

Wedded to the management and retention of talent is the delightful benefit that the company no longer has to wade into the battle ring and fight for top-tier talent. Instead, specialised, highly skilled and experienced talent is wooed and curated by the service provider while the company gets all the value from having hands-on access to a smart and capable workforce.

However, stepping into the world of outsourcing does ask that both the service provider and company are aware of the risks.

Sensitive data can be tricky to manage within the context of outsourcing – how should this data be handled by a third party, especially if they’re offshore?

What about the risk of intellectual property? Despite the proliferation of non-disclosure agreements and contracts designed to mitigate this risk, it doesn’t take away the potential for someone to share this information with someone else.

“These are considerations that must be prioritised before stepping into an outsourced relationship,” says Mbonambi. “They will add to the security costs required to protect sensitive data and demand that companies create solid and open channels of communication designed to reduce the risks of information leakage and loss. That said, communication can also be a catch point as some outsourced companies may not share the same culture or language and this can affect the relationship and add to the risks.”

Finally, one of the challenges that needs to be considered by both parties when moving into an outsourced relationship is the contractual agreement.

This includes Non-Disclosure Agreements binding both parties in handling all activities and materials confidential.

These can be rigid and complicated and can require that companies follow stringent legal processes before making any changes or shifting in a new direction.

“This doesn’t mean that outsourcing is going to end up being a complicated tangle of terms and conditions,” concludes Mbonambi. “Understanding the risks and recognising the benefits allows for both company and service provider to approach their relationship intelligently and with transparency. Open communication, clear visibility into services and expectations, agility and flexibility baked into the relationship to allow for shared growth and understanding – these are all key to building a relationship within the outsourced model that will thrive long after the ink has dried.”

Outsourcing in 2023 has become an intriguing topic with the many innovations that time has birthed. It has since become a matter of integrating tech with human capital in the right proportion. This has led to the emergence of many trends in the outsourcing industry.

Many companies have opted for outsourcing options when carrying out recruitment mainly because of the cost-cutting advantage that it presents.

One of the fields where many organizations have benefitted from outsourcing is Information Technology and over the years, there have been numerous changes and developments in outsourcing as it concerns Information technology.

In this article, we will be looking at 5 interesting trends that have characterized Information Technology Outsourcing in 2023.

1. Remote and Hybrid Work:

Moving on after the global pandemic coupled with the rapid invasion of technology into many work operations, remote work styles have not only become a major trend in the outsourcing of Information technology experts, but it has almost become a necessity.

Many outsourcing firms now prioritize applications from candidates with remote work experience as it has now become a default necessity, especially for global companies who intend to increase and nourish their workforce with a multicultural feel.

2. Environment friendly:

In more ways than one, IT outsourcing has contributed to a greener earth by reducing the use of paper for prints using more technology-inclined methods such as digital document copies, digital picture copies, mail, and other methods of storing and transferring information from one place to another.

This in turn will reduce the amount of paper consumed daily and subsequently reduce the rate of deforestation on the planet. IT outsourcing has made it more possible in recent years to create more reliable means of avoiding carbon waste on the planet.

3. Cybersecurity:

It’s almost impossible to mention trends in IT outsourcing in 2023 without mentioning cybersecurity. As many companies now practice remote work mode, so have cyber threats increased.

However, there have also been significant developments in cybersecurity geared towards combating these cyber threats. Just as Outsourcing has expanded the digital workspace, so has it provided security for it through cybersecurity.

4. Adoption of Blockchain Technology:

Blockchain has gained more prominence recently and has also been of immense advantage to the players in outsourcing.

One of the challenges faced in IT outsourcing is finding simple transaction methods between service providers and recipients transacting between countries with different currencies and varying payment gateways, however, the emergence of blockchain technology has made transactions easy between payers and payees regardless of their location or currency. This trend has made outsourcing processes even easier in recent times.

5. Integration of Artificial Intelligence:

Another major trend in IT outsourcing is the acceptance of AI. The advent of Artificial Intelligence came with a lot of questions.

Many had opined that it might quench the creative spirit or create huge doubts about the authenticity of art.

Some said it would take the jobs of many in the creative industry. However, Artificial Intelligence has made the list of trends in Outsourcing in 2023 because creative have coined out different ways to use it to enhance their productivity without compromising authenticity.

These are some of the phenomena that have influenced Information Technology Outsourcing in 2023.

Outsourcing is no longer just about recruiting new human hands but also involves the inclusion and collaboration of technology and tech service providers aimed at driving advancement. More trends are expected to sprout as time goes on in this ever-evolving field.