What Makes South Africa an Ideal Offshore Outsourcing Destination?

What Makes South Africa an Ideal Offshore Outsourcing Destination?

The worldwide interest for business process outsourcing assistance is certainly rising with the size of the global BPO market projected to hit USD 343.2 billion by 2025, developing at a CAGR of 7.4%. This isn’t unexpected since worldwide organizations are consistently on the lookout for dependable and practical BPO destinations. For these organizations, searching for BPOs isn’t an easy choice. Organizations should think about a bunch of elements, among which operational location is at the top of the list. Countries like India and the Philippines have been famous locations for client and technical support along with back-office outsourcing services.

Nonetheless, the last decade has observed a continuous yet consistent change in the development of various locales that have started offering more prominent choices and worth to organizations looking for BPO services. In 2007, BPO in South Africa was recognized as one of the arising BPO service providers. Presently, after 12 years, the forecast has come true. The country has shown a 22% yearly development rate in its BPO area, almost thrice more than India or the Philippines.

Here are four reasons why any organization searching for outsourcing should look towards South Africa as their next destination for outsourcing.

  1. Government Incentives for BPOs

For BPO purchasers, having trust in the dependability and solidness of a location is important. Offshore outsourcing needs to work every minute of every day/365 without a glitch, so it’s a matter of front-line benefits as well as a strong business environment. This is the part where South Africa has positively shaped the outsourcing map by making a few political and financial changes. The South African government has rolled out some proactive reforms to its financial strategies since 2007 to make BPO benefits more appealing to global purchasers.

The country’s Division of Exchange and Industry has played an important part in bringing global interests into the BPO sector. This opening up of the area has prompted the ascent of top-notch specialist co-ops at lower costs because of different assessment motivating forces and better neighborhood foundation. This availability of the sector has resulted in an increase of high-quality service providers at more economical costs thanks to numerous tax incentives and better infrastructure. The innately good conversion scale additionally facilitates reduced service costs. These variables have effectively pulled in major worldwide brands like IBM, Accenture, Amazon, and Capital One and won the country various industry honors. South Africa was entitled “Offshoring Destination of the Year” two times over the most recent five years, in 2016 and 2018.

  1. Advanced Physical and Technological Infrastructure 

South Africa has hopped 7 positions in the Global Competitiveness Index of World Economic Forum during the 2018-19 period, representative of its position as an exceptionally preferred business destination. An essential factor behind this leap is the country’s advancement of a-list infrastructure, extensive homegrown transportation support, and a SEACOM telecommunications network powered by fiber-optic for worldwide availability. In 2017, the country additionally drove the advancement of worldwide contact center norms – ISO 18295.

This year has seen a few empowering advancements that build up South Africa’s business cordiality. Rain South Africa, a local network provider, teamed up with Ericsson to start the first 5G network of South Africa which will offer a speed of almost 200 Mbps to its users. Recently Google directed its first Google South Africa Gathering in Johannesburg – an obvious sign that the tech titan is not kidding about its growth in the country. At the meeting, Google launched different product offerings custom-made to the South African market.

Modernized data and communication innovation infrastructure have brought about South Africa’s admirable climb on the Ease-of-Doing-Business index. The country is now ready to offer everything from cloud-based services to cutting-edge analytics at an aggressive cost for organizations.

  1. Geography, Culture, and Language Alignment

South Africa is praised for its rich cultural diversity and etymological customs, yet English is the accepted language of business and government. English is even utilized in parliamentary and state procedures. The omnipresence of English makes global communication a breeze. Besides, the time zone of South Africa is quite close to European business sectors, just a couple of hours ahead of GMT and one hour ahead of Paris. The time zone preference makes it a favored option for European nations offering services during work hours.

Also, South Africans devour a huge amount of American TV programs, films, and pop culture, which makes them knowledgeable about the social colloquial nuances of American discourse and the subtleties of American social standards. This permits offshore customers a positive, culturally booming experience.

Additionally, South Africa has been a preferred tourist spot on account of its stunning geography, historical importance, stable environment, and wildlife. This has added to service- and sales-oriented to its national character. South Africans in general tend to be tough and compassionate, which makes them determined to work and appropriate to the needs of global business clients. This is the reason organizations from English-speaking markets like the UK, USA, and Australia, comprise a vast dominant part of South Africa’s contact center customer base.

  1. Huge Opportunity to Build Workforce and Empower Lives

In 2011, the South African Ministry for Exchange and Industry renewed a sequence of productive BPO/Business Process Services (BPS) projects to show their support for the sector. This program tried to upgrade the country’s outsourcing abilities for worldwide corporations and influence domestic talent. It constructed the basis of an offshore labor force as it created many new openings for young English-speaking individuals.

Similarly, a huge proportion of associations that outsource work to monetarily less fortunate countries starts various socially responsible welfare assistance drives. These drives help enable marginalized communities and produce a ton of local goodwill. This has been the condition in South Africa also.

At the recently conducted South Africa Investment Meeting, President Cyril Ramaphosa declared an aspiring vision to drive ventures of up to €90 billion over a time of 5 years. This demonstrates an inundation of foreign direct investments which will convey an amazing lift to the economy. French organizations, for example, Total, Air Liquide, and Alstom have vowed to contribute more than $1.3 billion over the coming 3 years.

A Quick Recap…

In the present profoundly aggressive globalized market, finding a monetarily and environmentally stable outsourcing destination can be a test. South Africa presents everything to the table: An appropriate climate, great government support, motivators for global business, and social reverberation.

CGS has as of late increased its BPO delivery capabilities in South Africa to guarantee that it’s ready to leverage every opportunity that the different country has to bring to the table. This incorporates services like sales, digital advertising, customer care, and specialized technical support.


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