The Rise and History of IT Outsourcing in Madagascar: why choose the Big Island?

IT outsourcing has become a crucial strategy for companies seeking to optimize their resources while maintaining impeccable service quality. Madagascar, with its largely underestimated potential, emerges as a preferred destination for outsourcing IT projects, offering a unique combination of competitive advantages.

The beginnings of outsourcing in Madagascar

The start

In the late 1990s, Madagascar began to emerge as a potential player on the global technology scene. This period coincided with the advent of the internet and the democratization of access to information and communication technologies (ICT) in developing countries. Malagasy visionaries, often trained in Europe or the United States, returned to their home country with valuable expertise and the ambition to establish high-value-added businesses.

The Malagasy government, aware of the opportunity to position the country in the international outsourcing market, implemented investment incentive policies. These policies included tax benefits, the creation of special economic zones, and support for ICT training. These efforts aimed to attract foreign investors while developing a dynamic local ecosystem.

Expansion and Development

The significant expansion of IT services in Madagascar in the early 2000s is mainly due to two factors:

– the quality of the workforce,

– cost competitiveness.

The Malagasy workforce stands out for its high level of education, especially in scientific and technical fields, as well as its linguistic adaptability, with widespread use of French and growing familiarity with English.

International companies, looking for partners offering excellent value for money, began to take an interest in Madagascar for activities such as:

– software development,

– Business Process Outsourcing (BPO),

– and technical support.

The success stories of these early collaborations reinforced the image of the Big Island as a reliable outsourcing destination, thus attracting an even greater diversity of international players.

These developments are supported by continuous improvements in ICT infrastructure, with the arrival of undersea fiber optic cables significantly increasing connectivity and reducing communication costs. Meanwhile, both public and private initiatives strengthen local skills, through the creation of specialized ICT training centers and support for entrepreneurship in the digital sector. Among these specialized computer training centers is INSI (a specialized institute in computer science, artificial intelligence, data science, and cybersecurity).

Education and Training

Madagascar’s emphasis on education and training in ICT fields is often cited by specialists as a central pillar of its success in IT outsourcing. Malagasy universities and vocational training institutes have adapted their programs to meet the global market demand for IT skills, thus offering students training aligned with the requirements of international companies.

Experts like Marc Ravalomanana, a Malagasy entrepreneur and former president, have highlighted the importance of education in the country’s economic development. Under his governance, efforts were made to improve access to education and encourage technological innovation. Scholarship programs for studies in science and technology were implemented, aiming to prepare a generation of skilled professionals for the outsourcing sector.

Innovation in Public Policies

Innovative public policies have also played a crucial role in the development of IT outsourcing in Madagascar. The establishment of special economic zones, offering fiscal and customs benefits, as well as the improvement of ICT infrastructure, are examples of policies that have directly contributed to Madagascar’s attractiveness for outsourcing.

Creating a Conducive Business Environment

Creating a conducive business environment is another key factor emphasized by specialists. This involves not only supportive government policies but also the establishment of networks of incubators and accelerators to support startups and SMEs in the ICT sector. In March 2023, the United Nations Population Fund (UNFPA) opened a digital project incubator in Antananarivo, the capital of Madagascar.

These specialists emphasize the importance of a holistic approach to developing the IT outsourcing sector, including strengthening local capacities, encouraging digital access for girls, adapting to international standards in terms of data quality and security, as well as promoting innovation and entrepreneurship.

In summary, the evolution of IT outsourcing in Madagascar is the result of a combination of factors, including targeted investments in education and training, innovative public policies promoting investment and infrastructure development, as well as the creation of a business environment encouraging entrepreneurship and innovation. The ideas and analyses of specialists underline that Madagascar’s success in this field relies on a long-term vision and collaboration between government actors, the private sector, and the educational community.

Why choose an offshore web agency in Madagascar?

Competitive advantages

One of Madagascar’s main assets lies in its skilled workforce, with a solid education in computer science and a natural aptitude for languages, especially French and English. This linguistic competence, combined with operating costs significantly lower than those of traditional outsourcing destinations, makes Madagascar particularly attractive. Moreover, the cultural and historical proximity to French-speaking countries facilitates communication and mutual understanding in outsourcing projects.

Legal and Governmental Framework

As seen previously, Madagascar has implemented favorable outsourcing policies, including tax incentives and a reassuring legal framework for foreign investors. Legislation on data protection and intellectual property is in line with international standards, offering legal security to companies choosing to outsource on the Big Island.

Our company positions itself as a preferred partner for IT outsourcing in Madagascar. Our offshore web agency offers a comprehensive range of services, from web development to setting up dedicated teams, tailored to the specific needs of each client. Our commitment to quality and innovation is at the heart of our approach, ensuring the success of your IT projects.

Madagascar represents a unique opportunity for IT outsourcing, thanks to a beneficial combination of skilled talents, competitive costs, and a reassuring legal framework. By choosing Madagascar, companies not only benefit from advantageous economic partnership but also from enriching collaboration on a human level.

We invite companies to discover how we can help them achieve their IT ambitions by leveraging the unique assets of Madagascar. Contact us today to explore together the endless possibilities offered by IT outsourcing in Madagascar.