Kenya's business process organisations (BPOs) finally captured the domestic market after Telkom Kenya contracted its customer service operations to Kencall. BPOs have previously been confined to international clientele.

Kencall, one of Kenya's oldest BPOs, will manage consumers of Telkom's mobile phone services.

Kenyan BPOs have been under threat from international rivals due to the high cost of bandwidth, and Telkom's move should be a big boost to their growth. Investors say their survival depends on the ability to attract big corporate clients locally to enable them gain competence and finances to compete internationally.

Kenya has vast potential as a global outsourcing hub. Local companies are now being lobbied to outsource their non-core business solutions to cut costs of setting up internal departments.