R120 billion boost from international companies set to add 200,000 jobs in South Africa
International companies will likely increase their offshore operations in South Africa, with over 200,000 jobs expected in the coming years.
New data from recruitment firm Robert Walters showed that offshoring is expected to generate up to $6.8 billion USD (roughly R120 billion at current exchange rates) for South Africa’s economy by 2030.
The sector is also expected to create over 212,000 skilled jobs over the next five years, as international companies increasingly bring operations to South Africa to tap professional talent.
This will mark a 45% increase from today’s contribution, estimated at $4.4 billion (about R76 billion in current currency), and will see offshoring grow from 1.07% to 1.60% of South Africa’s GDP by the end of the decade.
The forecast, which was produced by the Robert Walters Market Intelligence team, shows a shift in the global offshoring landscape.
The sector was previously focused on cost-saving and volume, while it now focuses on building capability, quality, and resilience by tapping into skilled international workforces.
“The growth highlights how the offshoring sector is becoming deeply embedded in South Africa’s economic architecture,” comments Phill Brown, Head of Market Intelligence at Robert Walters.
“Over the next five years, it has the potential to strengthen the country’s talent pipeline and support the development of specialised professional capabilities.”
“This expansion will not only drive export-led growth but also enhance South Africa’s position as a trusted hub for high-value business services.”
The new information follows prior research from Robert Walters, which showed that 60% of business leaders around the world ranked South Africa as the best country for offshoring.
Key factors driving the growth include South Africa’s strong English proficiency, close time zone with Europe, and a growing reputation for high-quality business and technology services.
This has allowed international companies to take on increasingly complex functions offshore.
When it comes to South Africans, there is a strong demand for professionals skilled in accounting, financial analysis, and auditing.
“More companies are viewing offshoring not as a cost-cutting tactic but as a talent access strategy,” comments David Barr, CEO – Outsourcing at Robert Walters.
“What sets South Africa apart is its ability to offer both scale and sophistication. It’s this balance that is driving South Africa’s growing role in powering business-critical functions for international organisations.”
South African talent in demand
Although Robert Walters’ data showed that international companies are hiring skilled South Africans for offshore roles, other insights show a demand for South Africans in onshore roles.
Given South Africa’s skilled workforce and a large population with a strong desire to emigrate, tapping into skilled workers from South Africa seems like a logical choice for many.
For instance, global airline Emirates is looking to recruit South African workers for over 200 IT roles in Dubai.
Software engineering, DevOps, hybrid cloud, agile delivery, technical product management, digital workplace, cybersecurity, IT architecture, innovation, and service management roles are available.
The airline is hosting information sessions in Johannesburg and Cape Town later this month to recruit South Africans.
This aligns with the poaching of South African tech talent.
Rob Mailich, Global CEO of REDi Holbourne Recruitment Group in the UK, said that global demand for skilled South Africans is growing, particularly in healthcare, education, engineering, and IT.
He noted that countries including Canada, Germany, the UK and the UAE are looking for skilled South Africans to fill their skills deficit, with young South Africans taking advantage of the offers.
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