Outsourcing Fiji

Fiji: The New Offshoring Destination for the Global Market

Fiji has built a reputation as a world-class tourist destination and as an experienced garment and sugar producer. Now, Fiji is on its way to become a regional business hub for online-enabled services, such as business process outsourcing (BPO).  Growing businesses have an important role to play on this new journey, and Business Link Pacific is well placed to support them. 

Fiji’s competitiveness in the ICT enabled industries can be identified in four industry areas*: 

  • Quality and quantity of talent. Fiji achieved a literacy rate of 94% and gender parity in education in 2015.  The education system supports young Fijians to enter and remain in the education system until the completion of secondary school. A high level of education allows Fiji’s workforce to participate in the online services industry, which requires computer literacy and English proficiency. Fiji is the only Pacific Island with a proven record in the online industry. The country was awarded the 2014 European Outsourcing Association (EOA) Awards, Off-shoring Destination of the Year for Mindpearl’s operation in the country. 
  • Competitive cost. Fiji offers a highly educated workforce with a unique predisposition for customer service at competitive rates, along with strong incentives to support industry growth and attract foreign investment. Incentives focus on lowering operational costs for new operators. 
  • Quality of ICT infrastructure. Fiji established two parks specialising in ICT industries. The USP ICT Park with fibre optic connection to the FINTEL Fiji hub via USP’s centre, and the ATH Technology Park; 40 acres with access to the Southern Cross Cable Network. 
  • Enabling environment. Since the early 2000s, Fiji identified that internet-enabled industries are a viable way to address issues of market isolation and unemployment. In the last two decades, the country has developed the necessary ICT policies, acquired infrastructure, and created a conducive environment to encourage foreign and local investment. For instance, the income of an ICT operator may be exempt from corporate tax rate for a period of 13 years from the date of issue of the licence.

In 2017, Fiji’s stakeholders kick-started the formation of the BPO Council, the industry body that would guide and ensure the development of the industry. Representatives of academia, government, industry leaders and international supporters were part of the discussion about the need to develop a strategy that would move the industry forward. The BPO Council is headed by the private sector and has governmental support from the Ministry of Industry Trade and Tourism and Investment Fiji. Founding members are CentrecomLyndhurst Group of CompaniesGreymouse, DHL, Vodafone Fiji LimitedANZ Pacific OperationsRecoveries Corporation Pty LtdTelecom Fiji Limited and BSP Life. There are around 15 smaller BPO operators in the country that could become members of the Council in the near future.  

Leaders in the telecommunications sector in Fiji shared the vision of a globally competitive industry that offers high-quality services to niche markets, specialising in services such as debt recovery, back-office services, financial services, insurance claims processing, documentation, customer service, outbound sales, telemarketing, IT help desk services and data processing. These services have increased demand in neighbouring markets such as New Zealand and Australia. Small and medium-sized businesses play a vital role in the future of the online services industry in Fiji, as they cater to clients with small operations, interested in a closer relationship with providers. 

Business Link Pacific Director, Steve Knapp (foreground) at the Business Process Outsourcing Council meeting in Fiji in October 2019.

The BPO Council has developed a strategy that covers industry development and market access. Key deliverables of the strategy are market research, brand and product-service awareness, and operational structure. Business Link Pacific is working to support the Council to implement its strategy, explicitly facilitating access to training for members and assisting the entry of growing BPO operators to the Council as paying members, which in time will secure even representation of the sector. 

As part of this strategy, the Council is liaising with the University of the South Pacific who are working with Skills International to develop a curriculum that provides foundational skills for contact centre roles. The Council and the USP are already outlining future courses that would deliver capabilities on debt recovery, claims processing and outbound sales. Council members will open internships to deliver the practical module of these courses. Students that complete their courses will be awarded an internationally recognised qualification. 

In addition, the Council initiated discussions with the Fiji National University to develop similar programmes.

The online service industry has enabled 3 million direct jobs worldwide. For Fiji, employment forecasts are positive, the World Bank predicts 5,809 direct jobs by 2020 and 30,000 by 2040 in the whole knowledge economy, which includes all internet enabled industries.

“In 2019, the BPO industry employs nearly 3,000 Fijians, and its target is to employ a total of 7,000 in the next five years. The industry contributes to the Fijian economy USD 32 M in foreign exchange every year and has created several working spaces custom-built to support large teams,” reports Carol Watkins, GMO at Pacific Centrecom and Chair of the BPO Council.

As many entry levels jobs face automatization in the BPO sector, market leaders are specialising in high skilled services to remain relevant. In this respect, Fiji can offer a well-educated young workforce supported by a well-connected diaspora of entrepreneurs.

“The Council is focusing on markets that require specialised back-office work like accounting, marketing and financial services that would generate better income. We are working with local educational institutions to make available specialised training for debt recovery, insurance claim processing. Working with academia is key to ensure the right skills are available. We often experience that graduates lack soft and negotiation skills, basic for these jobs. As providers we know that continuously improving our skill sets is key to meet the changing requirements of the industry” explains Carol.

The preservation of cultural heritage is also important for the industry. The BPO Council is set to support the cultural capital of the country, by promoting the “Bula” spirit that has characterised Fiji’s international image of a welcoming paradise. The Council is also convinced that new job alternatives will contribute to the social cohesion of the country and benefit external communities that do not participate in the industry by increasing job opportunities and economic growth

Business Link Pacific looks forward to working with and supporting the Business Process Outsourcing Council of Fiji. See below for their contact details: 

Business Process Outsourcing Council of (Fiji) Limited
Registered Office: C/-Pacific Centrecom (Fiji) Limited,
Level 6, BSP Life Centre,
20 Thomson Street,
Suva, Fiji Islands.
+679 3212 300

Natalyn.Lakhan@Centrecom.com.fj

 *From the 2015 World Bank report “Information and Communication Technologies for Jobs in the Pacific,” by Beschorner et al., 2015.