Entrepreneurs in Kenya are enthusiastic about Google’s Product Development Center, but they may have trouble retaining expertise. While this growth is positive for local talent, it has an impact on the capacity of local entrepreneurs and enterprises to acquire qualified employees.
According to the Financial Times, several local firms lost their best hands to Microsoft with the inauguration of its African Development Center in 2019 and subsequent recruiting campaign.
“Microsoft’s presence transformed the dynamics of the software engineer industry overnight,” says Caine Wanjau, Twiga Foods CTO. The organization was impressed with what they saw in software engineers, product managers, and designers, and they are currently actively recruiting.”
Local companies lost several staff when Microsoft offered much greater compensation. Lori Systems, another firm, lost six workers and Twiga Foods lost four.
However, with Google and Visa entering the game, the battle for local talent will only become worse. And some local business owners confess it.
“In the short term, this will be a strain for startups like ours,” June Odongo, Founder and CEO of Senga Technologies, told Techpoint Africa, “, particularly from a compensation perspective given that we are not only competing with the world’s largest technology companies but are also doing so in an ecosystem with different macroeconomic variables from the US.”
While local businesses cannot compete on price, Mazi Mobility CEO and Founder Jesse Forrester feels that the presence of Big Tech giants will assist the local ecosystem in the long run.
“Tech behemoths have a predilection for grabbing up top people, which has a detrimental impact on the environment for startups that can’t compete on price.” As a result, they have the chance to improve collective technical abilities while still making top-tier professionals accessible to entrepreneurs. More talent and hubs will lead to better software products and development throughout the nation, which is wonderful for the local ecosystem. This, perhaps, will boost the number of highly trained developers.”
Autochek Africa‘s Kenya Country Manager Bilhah Muriithi also feels that the business situation would improve in the long term.
“In addition to creating new employment possibilities for Kenyans, the overflow of new technology, culture, and procedures that have been associated with these businesses will strengthen the Kenyan business scene in the long run.” Many local businesses will be forced to improve the standard in order to recruit and retain talent, which is a positive thing.”
On the other side, Jumba Founder and CEO Kagure Wamunyu feel that this would enable local developers to contribute to the local economy while working for multinational corporations.
“These multinational corporations’ new launches will undoubtedly increase competition in the talent market. However, rather than migrating to the West, this allows individuals to work for global corporations while still contributing to the local economy,” she added.
Both Odongo and Wamunyu have worked for multinational corporations and feel that such advancements are beneficial to the local ecosystem’s long-term prosperity.
“In the long run, this is beneficial to both developers and businesses.” Large corporations cultivate talent, which then seeds and multiplies an ecosystem. The main contribution to India’s present IT growth is Microsoft, EMC, and other corporations outsourcing skills to Indian companies like Tata and Wipro; we’ll see the same here.
“I got the chance to work for such organizations and develop industry-leading skills, and now I’m here in Kenya with a startup,” Odongo continued.
Wamunyu, therefore, views this as proof of the local ecosystem’s expansion.
“Having large tech firms invest in Kenya can help cast a brighter focus on what African businesses have accomplished over time with the aid and support of workers, as well as create an enabling atmosphere for future collaborations and investment possibilities.”
Forrester also expects that the entrance of corporations such as Google would inspire non-traditional investors to come forward in the area.
“The investment identifies Africa as the next development frontier. A great testimony to Africa’s growing importance in the global entrepreneurial landscape. I believe this will relieve anxieties about the high level of talent in the region and inspire non-traditional investors to invest in Africa,” he said.
Kenyan companies must discover strategies to recruit and retain people despite their inability to compete on salary and perks. Building outstanding products that give workers greater autonomy and the sense of being on a purpose is one option, according to Odongo.
“By producing more engaging and game-changing products, we expect to retain our developers, and we’re driven to expand quicker so we can pay better.” Startups, of course, have their own dynamics that a specific group like, so that will always be true.”
