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Outsourcing Saves Cost, Improves Efficiency-Kruger

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Roy Kruger is the Managing Director of BCX Nigeria, a 100% owned subsidiary of Business Connexion (BCX South Africa).

Kruger with more than 23 years experience in fixed and mobile telephony operations and management has gained a huge amount of knowledge relating to all aspects of telecommunications.

He spoke to hilary okeke on a wide range of issue in the industry.

 
About  IPTV

IPTV stands for Internet Protocol Television whereby you use technology to take normal television, put it into IP packets and send them across to regional wide area or local area networks, as opposed to broadcasting in the traditional manner. Although IPTV can be broadcast across a satellite network; it is just a much cheaper and ubiquitous manner of sending television to users. To receive IPTV, you need a PC, and local people in the country do not have them. As you know, the most common way of receiving broadcast signals today is through TV sets. Once ICT infrastructure gets to more people, IPTV will become very common. Right now, IPTV is used mostly in office buildings or housing estates where people can run fibre optic rings around the place, and then bring it in via satellite and spread it around by a fibre optic link.

Current Global Recession and Business Sense in Outsourcing

Outsourcing in some instances can save a lot of money because what it basically entails is that you go to a company and present them with a proposal whereby you take over their manpower cost and the cost involved specifically with IT. If a company manufactures motor vehicles, its primary job is to manufacture vehicles and not to worry about the efficiency of the computers, or the pay increase for the personnel. As an outsourcing company, BCX will take away that burden on that company and take over their manpower and ICT management. There are lots of advantages to doing that because companies can save on manpower and more importantly, their IT remains up-to-date because we replace it as opposed to them buying and keeping it for many years. As an outsourcing company, we make sure that it remains up-to-date with no extra cost to the companies; all they need to do is pay a flat fee every month.

Role in IT Infrastructure Building

BCX does systems integrating. We do not use a specific product from a specific company. We use various products from various companies – the best in the world from different manufacturers. For example, we use products from Cisco, Huawei, Avaya, Nortel and a score of companies. We take these products and design them to suit the companies, and then install, commission and maintain the various companies’ networks.

Services for the Banking Sub-sector

Banks traditionally have perhaps a couple of thousand people working for them. So, the primary area we would like to work in is called Internet Protocol Telephony (IPT). Here, we rationalize the whole telephone system within the bank, we install a central call system which takes the place of the traditional Private Automatic Branch exchange (PABX), and we turn the whole network into a digital one. In other words, your phones become more than phones. On a single handset, you can browse the Internet, make voice calls, watch videos and communicate either within or outside of the building. On top of that, we put in place what is called unified communications which for instance, takes a voice message and turns it into a text message or vice versa. So on a single handset, you can make all your communications; hence the name ‘unified communications.’ You receive all communications whether text, e-mail, voice or video – you receive it onto one point of presence. For banks with head offices and hundreds of branches, we build wide area connectivity for those branches either by using satellite, radio or traditional terrestrial communications.

Disaster Recovery not Taken Seriously

That is an area where many people learn the hard way. What that means is they wait until an actual disaster takes place, and then it is a case of regrets. But a number of the bigger organizations have realized the importance of this. Companies can do disaster recovery themselves or outsource it, and that is becoming a very popular way of doing disaster recovery. Many companies, especially the telecom operators, are building data centres to which they then outsource IT infrastructure, and they provide services which include disaster recovery – that is now becoming very popular in Nigeria. The reluctance about disaster recovery may not necessarily be due to cost. The ongoing running of an infrastructure which you might or never need – that is where the cost comes in. It is not the hardware but the ongoing operations that do cost a lot of money.

Application of Business Intelligence in Organization’s Success

Business intelligence can be done in a number of ways. The most popular one is what we call the customer relationship management (CRM) system. CRM systems are traditionally very expensive to maintain. But with the call centre technology and the integration of CRM into call centres today, it is becoming a much easier task to do. It allows you to gain intelligence on your customers’ data – their hobbies, date of birth – so that you can better serve them. From the BCX point of view, we use business intelligence as a way of producing a business case for our customers. We put together the business case to show customers that by using this type of equipment and technology, they would gain a better access to their customers and thereby increase their market share.

IP without Fibre

If you look at the history of IP, it dates back to 1969 in the American Department of Defense. Within this department was a group called Advanced Research Project Agency (Arpa), and the Department asked Arpa to come up with a method of connecting every single computer to one another within the American defence force. So Arpa went out and found that some areas had IBM, some HP, some Dell – they were faced with the challenge of synchronizing the computers which could not communicate with one another. So the only way for them to do it was to come up with a common set of rules, which they used to connect all the computers to one another. And they thought: “We just might as well call this thing an Internet.” Thus the name, Internet Protocol (IP). That is, Internet set of rules. IP is just a set of rules. The question now is – how do we deliver Internet more efficiently? Internet can run on any type of infrastructure; it has no limits on the type of infrastructure on ground. It is only a set of principles that is implemented and then you can run voice, video and data on top of IP. It can run over fibre; it can run over copper; it can run over radio; it can run over satellite. There are no limitations. They all deliver the same in terms of quality; it is just that when you consider fibre optics, it can provide more bandwidth but if you are running over it or copper at the same speed, there is no difference in the delivery. They both deliver the same quality and at the same speed.

About BCX

BCX is arguably the largest ICT Company in Africa. We have more than 5, 000 people working for the company; we are Cisco Gold partners, Avaya Platinum partners; we have many accreditations with the largest companies in the world. Technology makes BCX tick but I think more than that, we look at the types of people we hire specifically in Nigeria. I have made it a routine to hire students that are just out of the university and they are all clever young guys. Within six months, they gain huge experience and exposure within BCX. Developing the young people within Nigeria is one of our goals.

 


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FG Plans N50m STEEM Grant to Support Student Innovation in August

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In a giant stride to support innovation, entrepreneurship and economic transformation, the Federal Government is set to unveil a N50 million grant for Science, Technology, Engineering, Mathematics and Medical Sciences (STEEM) students in Nigeria’s tertiary institutions.

The project, which is referred to as the Student Venture Capital Grant (S-VCG), is a pioneering initiative designed to empower the students towards building the next generation of scalable, job-creating ventures.

According to a statement by the Director of Press and Public Relations in the Ministry of Education, Folashade Boriowo, Friday, the initiative will be formally unveiled in August by the Minister of Education, Dr. Tunji Alausa.

Boriowo stated that the minister made the disclosure during a stakeholders’ engagement session held in Abuja in the presence of vice-chancellors, provosts, rectors, student leaders, academic staff, and development partners, and will chart a collective course for nurturing student-led innovation.

The statement noted that the grant targets full-time undergraduate students in STEMM disciplines (Science, Technology, Engineering, Mathematics and Medical Sciences), specifically those in 300 level and above.

“Each selected student-led project will be eligible to receive startup funding of up to N50 million, along with access to mentorship, incubation services and business development support.

“The initiative will be implemented in partnership with the Bank of Industry (BoI) to ensure financial transparency, impact measurement and effective project execution.

“S-VCG is not just a grant. It’s a launchpad for bold, young innovators to lead Nigeria’s industrial and technological transformation,” said Alausa.

Speaking at the session, the Minister of State for Education, Prof. Suwaiba Sa’id Ahmad, described the grant as a strategic investment in Nigeria’s knowledge economy.

“We’re building a stronger, more competitive future by supporting innovation from the ground up,” she said, adding that the programme’s design was informed by months of consultation with students, faculty and institutional leaders.

Participants at the event welcomed the STEMM-Up Grant as a timely, strategic and high-impact initiative that will drive youth innovation, tackle graduate unemployment, and position Nigeria as a hub for student-led entrepreneurship in Africa.

 


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UK Businesses Look to Africa As Strategic Growth Partners

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New research by UK-based Strategy Management Partners reveals that a growing number of British businesses are identifying Africa as a key strategic growth region – drawn by structural reforms, demographic momentum, and rapid digital transformation across the continent.

The research, based on a survey of senior decision-makers from 250 large UK-based companies, finds that 50% are already active in African markets and planning to expand further.

An additional 28% are considering entry, signalling a clear uptick in long-term interest from international businesses with the resources to scale regionally.

The findings challenge outdated perceptions of Africa as a high-risk or secondary market. Instead, they highlight key drivers behind renewed commercial interest: • 61 per cent of UK leaders cited Africa’s large and growing consumer markets as a major draw. • 61 per cent pointed to the continent’s rapid pace of digital and technological adoption. • 50 per cent highlighted the potential of Africa’s young, skilled, and digitally native population.

The study also suggests that Africa is no longer viewed simply as a market for philanthropic initiatives or shortterm gain. Only 20 per cent of respondents cited philanthropic motives, while most are focused on building commercially viable, long-term operations.

Initiatives like the African Continental Free Trade Area (AfCFTA), are also laying the groundwork for significant economic growth.

With 23 countries already implementing preferential tariffs, the framework is expected to facilitate smoother intra-regional trade, enable market scale, and support more efficient supply chains.

These structural improvements are making Africa more attractive to global firms with the ambition to operate at scale.

However, despite rising optimism, significant operational and policy challenges remain. The top four barriers to investment cited by UK business leaders were: political and country risk (68%); safety and security issues 66.4%); regulatory barriers and tariffs (60.4%); and the complexity of cross-border transactions (60%).

Addressing these issues will be crucial to unlocking Africa’s full potential for UK investment. UK companies are showing the most interest in sectors that align with Africa’s core strengths, such as natural resources, agriculture, a young and expanding population, and infrastructure development.

These areas are seen as the backbone for long-term commercial growth, offering opportunities to build local supply chains, expand digital services, scale manufacturing, and meet rising consumer demand.

However, for companies looking to invest or expand into Africa, success also depends on key enabling conditions. According to business leaders surveyed, the top factors supporting investment are: • The size of market and consumer demand (49.6%) • Reliable and consistent energy supply (48.4%) • Access to affordable, educated and capable talent (44.8%) • Efficient transportation networks, such as roads, ports, airports (38%) • A favourable macroeconomic environment: low interest rates, low inflation, stable exchange rates, and seamless cross-border transactions and repatriation of earnings(38%).

“UK businesses are increasingly seeing Africa as a strategic growth market, driven by structural reforms, digital adoption, and the momentum behind the African Continental Free Trade Area (AfCFTA),” says Muibat Ijaiya, Partner at Strategy Management Partners.

“But real progress will depend on practical cooperation with African governments. The AfCFTAis a pivotal step forward – what’s needed now is a deeper alignment between public policy and private investment to address trade, regulatory and infrastructure barriers, and unlock long-term, sustainable growth.”

 


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Experts Champion Sustainability at Lagos Green Economy Forum

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Lagos State’s transition to a greener economy is gaining momentum, with female leaders from top corporations taking the lead and the state government beginning to record early wins from its plastic bag policy.

At the Lagos Green Economy Forum held on July 23, senior executives from MTN Nigeria, IHS Towers, TechnoServe, and other large organisations highlighted the role of corporate innovation in advancing sustainability.

The all-female panel also emphasised the urgent need to integrate Nigeria’s thousands of small and medium enterprises (SMEs) into the country’s green transition.

“We’re not just here to share strategies,” said Temilade Olabanji, Senior Manager, Sustainability and Shared Value, MTN Nigeria. “We are here to build local resilience. Our Project Zero is not only helping us cut emissions but also equipping our suppliers with the knowledge to do the same.”

MTN’s Project Zero aims for net-zero emissions by 2040, with a 50% reduction target by 2030. The company is already powering base stations and data centres with renewables, while training suppliers to understand carbon footprints and adopt circular practices. MTN has pledged that by 2026, 80% of its top suppliers will align with its sustainability goals.

Titilope Oguntuga, Director of Sustainability, IHS Towers, reinforced this approach, noting that the company’s Project Green is decarbonising its over 16,000 tower sites across Nigeria by switching to renewable energy. “Project Green is enabling all sites to run effectively with more renewable sources of energy rather than the typical fossil fuels,” she said. IHS also runs Clinic Without Walls, a free micro-health insurance scheme for underserved communities.

From the nonprofit sector, Juliet Ezeani, Senior Business Advisor of TechnoServe, explained how the organisation supports vendors through environmental impact assessments, sustainability training, and responsible procurement.“For all our projects, we look at how the project runs and especially how it affects the environment,” she said.

Meanwhile, the Lagos State Government provided an update on its green policy efforts, especially the plastic bag ban introduced two months ago.

“All of what we have done so far is towards making the economy of Lagos or the quality of life of the average Lagosian much better,” said Dr. Babatunde Ajayi, General Manager of the Lagos Environmental Protection Agency (LASEPA), who represented the Honourable Commissioner, Mr. Tokunbo Wahab.

On the plastic bag ban, he added: “What that [the ban] has also done is to free up our drainage from the plastic waste. In some way, we have reduced flooding, reduced pollution, and reduced the headache and the cost of maintaining drainages and labourers.”

Dr. Ajayi emphasised that green transition is not just a compliance issue for SMEs but an economic opportunity. “It helps them drive their engines, their entire businesses in a more sustainable manner.”

As Lagos accounts for nearly 30% of Nigeria’s GDP, the increasing alignment between corporate leaders and public policy towards a greener economy is positioning the state as a model for inclusive, environmentally responsible development.


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