Business
Top Seven Reasons why South Africa is the World’s Preferred Offshoring Destination By Sable International (www.SABLEINTERNATIONAL.com)
SOUTH AFRICA HAS BEEN poised to become the next global powerhouse in the BPO industry for several years now, having been named “Offshoring Destination of the Year” in both 2016 and 2018. While the country’s strong government support and business incentives have lured companies such as BT, British Gas and Amazon, there are several other benefits South Africa can offer over alternative offshore destinations. 1. COST In this day and age, all companies need to be mindful of saving costs and taking care of their bottom line. While South Africa continues to have its economic challenges, the weakening Rand presents a favourable exchange rate for global companies. Labour costs are much lower, as more industrialised countries in Europe and North America have higher salary rates in comparison. 18
January-February 2021
Furthermore, the cost of living is relatively low. It is estimated that the cost of living in Johannesburg is 56% lower than in London, whereas Cape Town and Durban are respectively 62% and 67% lower than London. In a competitive economic climate, markets such as South Africa that offer lower costs are becoming increasingly attractive options for cost-conscious companies. 2. SKILLS South Africa’s unemployment rate currently sits at 30.8%. The country’s BPO industry, as such, provides a low barrier to employment. It is an attractive option for a high number of young, ambitious job-seekers eager to get ahead in their careers. South Africans are known for their industrious work ethic, which is appealing to BPO service providers. This high availability of quality talent has been a key driver of success, and global companies are leveraging South Africa for delivery of complex DAWN
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