search.noResults

search.searching

saml.title
dataCollection.invalidEmail
note.createNoteMessage

search.noResults

search.searching

orderForm.title

orderForm.productCode
orderForm.description
orderForm.quantity
orderForm.itemPrice
orderForm.price
orderForm.totalPrice
orderForm.deliveryDetails.billingAddress
orderForm.deliveryDetails.deliveryAddress
orderForm.noItems
REGIONS MIDDLE EAST & AFRICA


SouthAfrica’s rising BPOindustry


THE BUSINESS PROCESS OUTSOURCING INDUSTRY IS EXPECTED TO TRIPLE IN SIZE AFTER WITHSTANDING THE COVID-19 TEST. JASON MITCHELL REPORTS


S


outh Africa’s business process outsourcing industry adapted rapidly to the Covid-19 crisis


and is expected to almost triple in size by 2030, according to manage- ment consulting firm McKinsey. In September, the sector — which


involves sub-contracting a range of business-related operations to third- party providers — employed more than 270,000 people in the country, including 65,000 staff who service


international clients, according to McKinsey. It estimates that the industry’s total number of employees could jumptomore than 775,000 by 2030, with up to two-thirds catering for over- seasmarkets. South Africa was voted the second most


attractive Business Process Outsourcing (BPO) location in the world for three years in a row, according to the 2020 Front Office BPO survey by Ryan Strategic Advisory. India was ranked in first place and the Philippines in third.


International reputation In September 2020,McKinsey valued the overall South African BPO market at $461m — $272m of which was attributed to traditional BPO, while business process as a service (BPaaS), a form of BPO that employs a cloud computing service model, was valued at $188m. The South African industry had a com-


poundannual growth rate of24%between 2014 and 2018, and of 34%in 2019—twice the indus- try’s global growth rate—according to Business Process Enabling South Africa (BPESA), the country’s industry trade association. Currently, the country has more than 100 local and inter- national BPO providers, including Teleperformance, EXL,WNS, andWebhelp. During the year to the end of March 2020,


the sector attracted $250m of new foreign and domestic investment, according to BPESA. In June 2020, Amazon announced it would hire 3000 people in South Africa to support custom- ers in North America and Europe. Even during the pandemic, between January and September 2020, more than 6500 new employees were added to the industry. “In April last year, the industry in South


Africa reacted extremely quickly to the Covid-19 crisis,” says Traci Freeman, the marketing and growth executive at BPESA. “Within a few weeks, up to 80% of essential service agents were working from home. A


86


number of multinational companies either shifted their call centre work fromother desti- nations around the world [which were] unable to meet the demands lockdown had placed on them, or due to customer demand and growth, to South Africa because they were impressed by howfast our industry hadmanaged to adapt. “The South African industry’s reputation


globally certainlyimprovedlast year and I think that bodeswell for us in the future. The country presented new options to international brands and clients to de-risk their businesses in times of uncertainty and disruption.”


Essential service The national government granted the BPO industry ‘essential service status’, which ensured that local providers could continue to service their clients during the country’s lock- down in April and May. BPESA has estimated that 60% of the industry’s employees are now working from offices, while the remainder work from home. It is expected that this new hybrid model will continue, as it opens up an expanded pool of talent who can work from home, but were previously excluded from the industry. It has boosted the ‘gig economy’ and enabled firms to pull in staff for shorter bursts of work, when possible. BPO providers deliver a range of services for


their local and global clients including contact centre services, finance and accounting ser- vices, legal services, information technology services, and human resources services. The South African industry is particularly strong in customer service and shared services — specifi- cally in the area of banking, financial services and insurance and in alternative legal services. More than half of thework performed by South Africa’s call centre outsourcing currently comes fromthe UK. According to BPESA, international clients


have found the South African industry attrac- tive because itcombines an educatedworkforce with a clear English accent at relatively low labour costs. Clients also appreciate the cul- tural affinity that exists between South Africa andWestern countries, it added.


Connectivity issues Teleperformance, the world’s biggest BPO pro- vider, rapidly expanded its headcount in South Africa to 2500 staff in the first quarter last year, from 450 staff in the first quarter 2019. It cur- rently has five offices, all located in Cape Town,


www.fDiIntelligence.com February/March 2021


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64  |  Page 65  |  Page 66  |  Page 67  |  Page 68  |  Page 69  |  Page 70  |  Page 71  |  Page 72  |  Page 73  |  Page 74  |  Page 75  |  Page 76  |  Page 77  |  Page 78  |  Page 79  |  Page 80  |  Page 81  |  Page 82  |  Page 83  |  Page 84  |  Page 85  |  Page 86  |  Page 87  |  Page 88  |  Page 89  |  Page 90  |  Page 91  |  Page 92  |  Page 93  |  Page 94  |  Page 95  |  Page 96