BPO industry growth and reputation in South Africa

outsourcing in south africa

The BPO industry in South Africa has risen in global popularity over the years. Businesses of all kinds and backgrounds have gotten to know South Africa’s BPO outsourcing industry as one of the greatest. There are numerous studies that show how the growth has impacted the reputation, but we won’t bore you with the numbers.

Instead, in this article, we’re going to look at the facts. Facts and statements are far easier to digest than numbers. On top of that, there is all the jargon of the BPO industry that makes the numbers a bit more confusing.

Without further ado, let’s get into it!

BPO industry growth in South Africa

No one can say for certain which year the outsourcing industry in South Africa took off. What we do know is that between 2012 and 2014, South Africa was already ranking in the top 100 offshore outsourcing locations in the world. You can read more about the number and statistics in this report from Deloitte.

Three major cities in South Africa are in the top 100: Johannesburg, Cape Town, and Durban. In 2014, Johannesburg was one of the leading outsourcing locations sitting at an impressive number 20. Cape Town was at #56, and Durban was just getting in at #100.

Since then, Cape Town has had tremendous growth. The BPO industry and outsourcing industry, in general, has increased in popularity with Cape Town being an offshore city of choice. 

Outsourcing reputation in South Africa

outsourcing growth south africa

One of the main reasons the outsourcing industry is growing in South Africa is due to our great reputation. Our country has proven itself to be reliable, trustworthy and efficient in BPO services. Before South Africa was considered one of the leading competitors, India was running the industry.

India has been in the top spot for quite a few years, being a popular choice for cost-effective outsourcing. Over the years, South Africans invested in the resources required for outsourcing as they saw the major potential for job creation. As an economy, South Africa has always struggled with job availability. Luckily, outsourcing took off and has been developing consistently in the last 10 years.  

Attractive Factors of outsourcing in South Africa:

  • Labor costs
  • Talent pool
  • Infrastructure
  • Telecommunication costs & skills
  • Government support
  • Cultural diversity
  • Neutral accents

Recent BPO industry growth

Since covid-19, outsourcing has grown tremendously. It’s easy to understand since it’s a cost-effective way to keep business services running while staying at home or out of an office environment.

bpo outsourcing business

The industry has adapted well to the remote working conditions. Even though many people lost their jobs during 2020 and 2021, outsourcing opened doors of job opportunities for thousands of workers. According to research and a report, the South African business process outsourcing industry market size is expected to grow at an annual growth rate of 13.2% from 2020 to 2027.

One of the reasons that outsourcing is doing so well lately is because it’s extending to new business service offerings. For example, the manufacturing industry, which took a big hit in the covid-19 lockdown of 2020, can benefit from the flexibility and skills required for growth in the coming years.

In summary

BPO outsourcing offers many benefits to businesses of all kinds. To summarize, the growth of the outsourcing industry has increased in South Africa due to our reputation and attractive factors.

South Africa is currently standing as one of the top outsourcing off-shore locations in the world. Although we’re not ranking in at number one, there is still lots of potential for growth in many years to come.

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