Tanzania's comparative advantage in the BPO sector

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The paper shares insight on how important services are in the global context and what that means to sub Saharan African countries like Tanzania and other EAC member states.

It further injects the theory of a newer international division of labour that was developed in the 1970’s to explain the movement of basic production of primary goods to developing countries as the periphery and establishment of manufacturing sectors from the developed countries (Core).

This geolocation practice was entirely based on cost efficiency of these countries, in this case the Asian tigers who have ever since thrived as the power houses of production.

The same notion has with time evolved into banking on technology and processes that are far more complicated with aspects like Marketing, design and research development – Hence the birth of BPO - Business process outsourcing and KPO- Knowledge process outsourcing.

This paper as previously stated focuses on Business process outsourcing, particularly in Tanzania and will show if Tanzania has comparative advantage.

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