Why Businesses Are Choosing South Africa’s BPOs

When the government joins forces with the business sector, growth inevitably follows.

South Africa’s BPO industry has flourished with the support of both the government and a dedicated global business services organization serving its interests. The result is that more businesses than ever are choosing BPO partners based in South Africa.

South Africa’s BPO Sector is Growing

A report by Grand View Research found that South Africa’s BPO market was worth $1.4 billion in 2019. The report also forecasts that South Africa’s BPO market will grow by 13.2% annually through 2027. Grand View Research credits South Africa’s large, low-cost talent pool with English neutral accents as the main driver for its BPO market growth.

According to Grand View Research, “South Africa has… garnered global recognition as a favorite and trustworthy offshore outsourcing destination.” Companies that partner with South African BPO firms include Samsung, Amazon, BMW, and T-Mobile.

The research firm, McKinsey & Company, agrees that South Africa is a favorite BPO location. McKinsey reports that South African BPOs currently employ over 270,000 individuals. The number of BPO employees will almost triple by 2030. McKinsey credits “strong operational and service capabilities” as reasons for South Africa’s BPO success.

In fact, South Africa’s BPO market grew three times faster than India and two times faster than the global average. This rapid growth is one reason why South Africa was named “Offshoring Destination of the Year” at the 2018 Global Sourcing Association Awards.

Government and Business Sector Support South Africa’s BPO Industry

The growth of South Africa’s BPO market is helped along by a collaboration between its government and the industry’s association, known as Business Process Enabling South Africa (BPESA). Both entities have invested in South Africa’s labor market.

The South African government recently signed onto a Global Business Services Master plan. The plan aims to create 500,000 new jobs in the BPO sector by 2030. The city of Cape Town is investing more than $3.5 million in the training and placement of skilled BPO workers. Additionally, the Department of Labour launched the Monyetla Work Readiness Programme with the goal of training 18,000 young people for jobs in South Africa’s BPO market. Currently, about 90 percent of the people working in South Africa’s BPO market are under the age of 35. And more than half of those are women.

The BPESA is a non-profit industry organization that “promotes domestic and foreign investment into the Global Business Services Sector in South Africa.” The BPESA focuses on skills development in the labor market, developing best practices for the industry, and representing the BPO market’s interest in public policy.

South Africa’s Focus on Its BPO Market Delivers Results

South Africa’s commitment to its BPO firms could be readily seen as the Covid pandemic hit. The global call center industry as a whole experienced long service disruptions as countries instituted stay-at-home orders. The South African government declared BPO services essential, and the country’s existing infrastructure helped the industry pivot to a work at home model in about 10 days, far more quickly than other countries. The South African BPO market’s resilience during a global crisis helped it earn a top spot in a survey that found it the most favored offshore CX delivery location in 2021.

The strategic partnership between the government and the business sector makes South Africa’s BPO firms successful outsourcing partners. Of course, finding the best outsourcing partner depends on many factors. If you’re ready to partner with a BPO firm that fits your budget, has experience in your industry, and delivers outstanding service, Insight BPO can help. We work with only the best providers and we have the expertise to help you navigate the BPO market. Reach out for a complimentary outsourcing assessment scott@insightbpo.com