PERSPECTIVE
5
Reasons Why
South Africa is the Next Global Outsourcing Frontier
For decades the Business Process Outsourcing (BPO) industry has been dominated by Indian outsourcing companies, and more recently by Philippine based service providers. These countries have enjoyed such success in the industry over the years that outsourcing has become a major employer (2.8 million jobs in India and 750 000 jobs in the Philippines) and pivotal contributor to their GDPs (Gwala, 2015).
N
ow, after years of providing trusted BPO services of our own, South Africa has identified BPO as a key economic enabler and is poised to become the next global powerhouse in the BPO industry. Here’s why global players should consider South African companies as their BPO service provider:
1.Improved Infrastructure: For years India was the frontrunner in the global BPO industry due to their superior technology solutions. However, with the global development of cloudbased technology and the availability of affordable and efficient broadband in South Africa, these solutions are no longer a key differentiator for Indian BPO providers, making South Africa a more competitive BPO service provider.
2. Cost and Quality: While South Africa has had its economic challenges over the past decade, the weakening Rand presents a favourable exchange rate for global companies. According to Talksure CEO Jacques De Beer, “South Africa currently ranks as the 3rd largest offshore location for UK and Australian companies who experience significant costsavings of up to 70% compared to onshore service delivery”. In a competitive economic climate, markets such as South Africa that offer lower costs and better service are becoming increasingly attractive options for cost-conscious companies.
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CeO 2020 Vol 20.3
