Global BPO (Business Process Outsourcing) in the Global Business Services sector in South Africa over the past four years has created more than 50 000 cumulative new jobs. That is a considerable number of people who now can make a living and thrive in the working world.
These jobs started being created from January 2018 up to the second quarter of 2021 and most of these new jobs were mainly for young, bright people. This is an amazing initiative in the sector because it contributes to addressing South Africa’s high youth unemployment rate.
We saw how the COVID-19 pandemic impacted the South African economy and unemployment for the worst. However, the sector has been a lifesaver with its resilient nature. Once again global BPO is proving to be the strongest industry with global clients relocating their businesses to South Africa and creating jobs during these unprecedented times.
In this article, we hope to document exactly why global BPO is growing so quickly and why it matters for business owners to learn these five key reasons – so they too can embrace change and discover endless opportunities in South Africa.
Global BPO Is the Fastest Growing Industry
There is something special about global BPO and what it means for the future world of business especially when international giants like Amazon, Webhelp, and TransUnion are making vital investments in the sector in the last year.
What’s more, the sector has been labeled as one of the green shoots that will drive the country’s economic reconstruction and recovery in the aftermath of the global pandemic.
Essentially, iContact BPO and South Africa are developing a plan to bolster the sector further and provide a framework and overview of the contributions that will be made by all relevant parties. Better yet, we can help provide the support needed to realize the employment opportunity.
The framework for this growth plan is important because its mission has set a target of creating between 250 000 and 500 000 cumulative new jobs in the sector by 2030.
Scaling Up Services
This means global BPO will scale up the services it already provides to existing global customers by securing additional work from them and attracting new customers who would invest in South Africa by expanding here or shifting existing business from other locations.
South Africa leads this initiative which provides confidence that the target can be achieved and is a priority in the global BPO sector.
We know the plan is working since the GBS export market has seen a 24% increase in CAGR (Compound Annual Growth Rate) between 2014 and 2018 and then a jump to 34% in 2019 prior to lockdown. However, in 2020 the growth tapered down to 15% but that is twice the global growth rate of the sector and three times faster than key competitors.
Therefore, it is evident that growth is a priority to global BPO along with confidence from the investment community.
Africa Is The Hub Of Global BPO
Recently, Africa has become the soaring international powerhouse for the outsourcing industry after being acknowledged as the esteemed ‘Offshoring Destination of the Year’ for three years in a row.
And with the well-cemented governmental support and corporate incentives, Africa has smartly lured in a spectrum of businesses like British Gas, BT, and Amazon as major accolades.
In addition, they have a cultural affinity, decent command of English, and similar time zones which have driven exponential growth in the global BPO sector.
African economies like Ethiopia, South Africa, Ghana, Mauritius, Kenya, Madagascar, and Nigeria have built a thriving presence in the global outsourcing scene.
5 Ways Global BPO Is A Fast-Growing Industry
Although global BPO has a resilient foundation, the industry was still heavily challenged by the effects of the global pandemic.
Companies had to rethink ways to operate, yet, despite uncertain times, the BPO sector continues to persevere.
Therefore, we foresee a bright future and can expect rapid growth in the industry.
1. Global BPO Is Economical
BPO is highly economical for business and has always been the first choice for companies in the UK, US, EU, and others.
Its services are top quality and allow businesses to reallocate savings for other expenditures which is a strategy companies abroad have implemented.
Ironically, the pandemic has increased globalization and is breaking boundaries and decreasing trade barriers through existing technologies. There are now endless possibilities for new global BPO partnerships.
Find out why iContact BPO is the way to go for your business.
2. South Africa Has A Pool Of Talent
The GBS has realized that South Africa has a young, dynamic and skilled workforce that delivers a world-renowned quality of service, along with deep knowledge in technology and financial services.
Also, the country has an elevated level of English proficiency and is positioned in a similar time zone to key export markets.
South Africa is voted the top location for global BPO and is rapidly expanding locally and exporting call centers and related services to other parts of the world. Technical support and back-and-front-office services have become a major job creation for young South Africans which is an excellent boost for the economy.
3. Government Support
Since global BPO has such an excellent impact on the country’s economy, the industry receives support from the government.
This is also why BPOs can provide benefits like tax holidays and exemptions, among others. One notable example of this relationship is the creation of the Data Privacy Act.
Through this act, international quality data privacy standards are now being followed in South Africa, giving companies opportunities to acquire new clients that have stringent protocols with their information.
This cooperation from the government helps businesses and BPO companies further expand their operations, with global organizations enticed to continuously outsource in the country.
4. High Demand
There have been a series of challenges presented to the world during and post-pandemic days. However, despite these challenges global BPO can still operate under difficult circumstances and organizations are continuously hiring for new job openings.
To conclude, there might be challenges but the industry is in high demand, constantly providing opportunities for those who are looking to start a new career.
Here at iContact BPO, we are often seeking new talent and have openings for accounts in different industries. If you become part of our team, we will ensure that you are profiled in a position that would best fit your goals.
5. Global BPO Is Adaptable & Agile To Changes
During the lockdown, global BPO operations had to learn new ways to continue the business. The impact of the pandemic is massive, but the industry’s growth catapulted.
The digital revolution is placing greater emphasis on the provision of strong, technical support through call centers. Firms in the sector want to be located close to a source of skilled workers.
The rapid expansion of global BPO is a tribute to the skills of young South Africans and evidence of what South Africa has to offer as a business and investment destination.
There is true potential in the country, and it is time we recognize them for economic success.
With global demand on the rise, and with a compelling and competitive proposition to global buyers and investors, the sector in South Africa is on track to achieve its target of 100 000 new jobs by the end of 2023 and 500 000 new jobs by the end of 2030.
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