Call centers in South Africa riding on Indian firm

November 18, 2011: According to Full Circle SA, the weaknesses in the Indian call centers are now being exploited by the South African business owners to serve clients in the Middle East. Full Circle is a call center firm based out of Cape Town in South Africa.

The major clients in the Full Circle’s list include giants from America such as Amazon and Bloomberg. Full Circle expects that the BPO model that it has developed will produce job opportunities to the tune of 30,000 during a period of next five years.

Rachel Irvine, a spokesperson from Full Circle said that the call center activities that are outsourced to Indian service providers are suffering due cultural or language barriers. She added that the brand equity of many of the products or services have gone down as a result of poor customer service from call centers in India.

In South Africa, the Department of Trade and Industry has observed business process outsourcing as a source of job openings for fresh graduates. It estimates that the BPO sector will create about one lakh job openings and will generate a revenue of R1 billion in the South African GDP.

The action plan to implement the industry policy in South Africa prepared by the Department of Trade and Industry has observed in 2004 that the Business Process outsourcing sector will grow at a rate of 50 per cent in a year for the next 5 years. It was estimated that the market will grow between $50 billion and $60 billion. Such a growth potential offered South Africa with large opportunities in tapping the benefits from the sector.

The South African government plans to generate 11 million employment opportunities by 2030, mainly in the small business segment. But still most of the entrepreneurs have to go through red tape to get things done. More over even though government plans to generate job opportunities in the small business segment, it is observed that most of the tenders are still bagged by large businesses.

Full circle claims that the model office concept developed by them will help businesses to go around the red tape. The major clients such as Amazon and Bloomberg have implemented the model since they have understood that the Indian call centers are failing to deliver.

According to Neren Rau, the labor cost in South Africa is very high when compared to other countries such as India which makes is difficult for them to be competitive.

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