South Africa remains one of the leading destinations for business process outsourcing (BPO) in the world, with the contact center and outsourcing industry expected to reach over $3 billion in value by 2016,\u00a0according to market research company Frost & Sullivan.<\/p>\n
The call centre market in South Africa is well-established and highly sophisticated in terms of technology adoption and services offered, says Ishe Zingoni, an industry analyst at Frost & Sullivan.<\/p>\n
The South African Business Process Outsourcing (BPO) and contact centre market was valued at $1.08 billion in 2010, and it is expected to reach $3.06 billion by 2016. This represents compound annual growth rate (CAGR) of 19.4% from 2010 to 2016.<\/p>\n
“The outsourcing market is growing remarkably, driven by a number of factors which include, inter alia, the need to focus on core business, and demand from off-shore markets such as US and UK.”<\/p>\n
“With the onset of the economic crisis, businesses are increasingly focusing on maximising efficiency in the business, and hence outsourcing non-core processes. Furthermore, this shift enables enterprises to manage costs better.”<\/p>\n
The South African appeal<\/strong><\/p>\n South Africa is one of the leading BPO destinations in the world, F&S said, with the country competing with the likes of India and Phillipines.<\/p>\n Analysis from Frost & Sullivan found that the Asian-Pacific market earned revenues of $17.18 billion in 2011, and estimates this to reach $29.72 billion in 2017.<\/p>\n So what makes South Africa an appealing destination in light of the competition?<\/p>\n “SA’s key selling points include an assortment of Government incentives in the form of grants and subsidies, good infrastructure, and cultural affinity with key western markets such as US and UK.”<\/p>\n Of course, despite the appeal of South Africa, high telecommunication costs and inadequate flexibility in the labour market are still major obstacles for the country, Zingoni said.<\/p>\n The Phillipines benefits from good skills and talent development, healthy government support and also has a cultural affinity with the united states, F&S said, while India has a mature BPO industry, expertise and low-cost.<\/p>\n Related articles<\/strong><\/p>\n ICT industry sheds jobs despite skills shortage<\/strong><\/a><\/p>\n South Africa looking to India for ICT skills<\/strong><\/a><\/p>\n SA\u2019s slide towards the wrong side of the digital divide<\/strong><\/a><\/p>\n