40% Of Tasks In Africa’s Growing Tech Outsourcing Sector May Be Affected By AI By 2030

• New research by Caribou and Genesis Analytics, conducted in partnership with the Mastercard Foundation, finds that only 10% of tasks in the BPO sector are fully resilient to automation, while tasks performed by young people and women are most at risk.
• AI is already transforming repetitive tasks, enabling employees to focus on strategic problem-solving, decision-making, and higher-value work.
• Investment in AI training and literacy will be essential to unlocking the BPO sector’s full potential and reaching $35 billion in value by 2028.

New research by Caribou and Genesis Analytics, in partnership with the Mastercard Foundation, finds that 40% of tasks in Africa’s tech outsourcing sector, including BPO (Business Process Outsourcing) and ITES (IT-Enabled Services), could be automated by 2030, creating new pathways for workers to move into higher-skilled, higher-paying roles.  With just 10% of tasks fully resilient to automation, strategic investment in widespread AI upskilling and training will be key to unlocking Africa’s $35 billion BPO potential by 2028.

AI is already deeply integrated into Africa’s BPO and ITES sectors, driving efficiency and innovation. Workers are using tools like ChatGPT, Microsoft Copilot, and in-house chatbots to enhance productivity, creativity, and accuracy. These AI-powered technologies assist with coding, debugging, content generation, and customer service, enabling employees to focus on strategic problem-solving, decision-making, and higher-value tasks. As a result, they see opportunities for career advancement and transitioning into higher-level roles

Despite these opportunities, AI’s rapid rise could impact certain roles in the BPO sector. Entry-level jobs – comprising 68% of the workforce – are particularly affected, with more than half of tasks being automatable. To futureproof the sector, AI-driven upskilling programs are needed to enable workers to shift into higher-skilled, better-paying roles in cybersecurity, AI management, and data services.

While AI presents significant opportunities, it also poses challenges, particularly for women and youth who predominantly occupy entry-level roles. The report highlights tasks performed by women are on average 10% more susceptible to automation than those by men in the sector. This disparity risks exacerbating gender-based inequalities in the sector’s workforce if not proactively addressed.

Customer Experience roles, which account for 44% of employment in the BPO sector, are among the most affected, with half of tasks in these roles being automatable. Finance and Accounting positions in the BPO sector face similar challenges, with nearly two-thirds of junior-level tasks at risk.

Without intervention, these shifts could disproportionately impact the livelihoods of young workers and women in the sector. To mitigate these risks, the report stresses the urgency of equitable AI upskilling and reskilling efforts to ensure all demographics can transition into future-proof roles.

Currently employing over 1 million people and representing 2% of the global supply, Africa’s BPO/ITES sector has become a global contender, thanks to its young, tech-savvy workforce and competitive costs. Projections show the sector growing to $35 billion by 2028, with the potential to add millions of jobs.

However, the rise of automation could slow down this growth. The report identifies Customer Experience roles - 44% of current employment in the BPO sector – as particularly vulnerable, with half of the tasks at risk of automation.

To harness AI’s potential and mitigate risks, the report outlines strategic recommendations to accelerate workforce upskilling and ensure inclusive AI adoption. While automation may replace routine tasks, it also offers the potential to enhance productivity, create higher-skilled jobs, and position Africa as a global leader in outsourcing.

1) Upskilling and Reskilling Workers

• AI-focused upskilling: Introducing AI training into BPO company upskilling programs to help workers transition into higher-value roles. This includes AI and cybersecurity training for workers in data annotation, IT support, and customer service, as these roles are at the highest risk of automation. Examples of specific skills to build on include AI literacy and machine learning, foundational AI models, and business applications.
• Targeted training for women: Prioritizing AI literacy programs specifically for women and mentorship initiatives to mitigate gender disparities in AI-driven job markets.

2) Standards and Governance

• Ethical AI and labor rights protections: Protecting workers in high-risk roles through a global AI labor framework that integrates fair wages, job security, mental health protections, and clear job descriptions outlining AI’s role in augmentation.

3) Expanding Access to Digital Infrastructure

• Tech infrastructure for rural and peri-urban youth: Launching a tech-equipment lending program that provides zero-interest laptop loans for youth in remote areas, enabling them to work in AI-integrated roles. CloudFactory and Shortlist, both located in Nairobi, have tested similar impact sourcing models.

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