Know emerging BPO destinations – South Africa

Five to six years back it was China which bagged the title of emerging BPO destination; then it was Philippines after that Latin America, Balkan Countries and Vietnam; and now it’s the turn of South Africa. It is estimated that country’s BPO sector is to grow significantly over the next few years to reach $3.06 billion by 2016. The vast talent pool, economic and social stability and increasing trend among the global firm to focus on core business functions and outsource non core activities are the main drivers of outsourcing industry in South Africa.

South Africa Map

South Africa Map. Image source

Why South Africa is the next BPO destination?

The success of FIFA World Cup has showcased South Africa as an ideal investment destination for global business players. The prestigious event demonstrated the country’s infrastructure and the economic and political stability which have set investors confidence at an all time high. South Africa is widely accepted as one of the emerging economy of the world and is one of the main offshore destinations for the U.K. companies.

Other key factors driving the growth of outsourcing industry in SA are listed below:

  1. Rich talent base- They offer a vast English speaking talent pool and produce about 3, 45,000 English speaking graduates every year.
  2. Experienced Personnel-They have large pool of experienced personnel from different domains.
  3. Infrastructure Facilities- They offer world class infrastructure facilities for the investors in the form of telecom, energy, internet and communications.
  4. Economic and Political Scenario-The economic and political stability exhibited by the country over the years is something exceptional which further boosts the confidence of investors.
  5. Government Support-The government has recognized BPO as one of the top priority sector and is committed to develop the sector by offering tax incentives and other subsidies to foreign investors for setting up business in the nation.
  6. High GDP growth- SA has recorded the highest GDP growth among other African nations. The country has a recorded a GDP growth of 3.1% for the year 2011 and is expected to grow another 3% in the year 2012.
  7. Cultural affinity and Time zone similarity- The similarity in time zone and their cultural affinity with U.K. makes them the most preferred BPO destination for the U.K. market.
  8. Non-Voice services- South Africa offers world class back office services. They score high when it comes to providing financial and legal services.
Blyde River Canyon Nature Reserve, South Africa

Blyde River Canyon Nature Reserve, South Africa Image source

Major Players of BPO sector in South Africa

  1. Accenture is a leading consulting and technology outsourcing company. Their delivery centers offer back office services and voice based services for their clients.
  2. Aegis, one of the leading BPO companies of the world offers contact center services, finance and information services from their hub in South Africa.
  3. WNS, a leading business process outsourcing company offers contact center services and business continuity services from their delivery centers in South Africa.

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