BPO in South Africa has registered constant investments for different industries since 2018.
And the numbers continue going up, being recognized as one of the most attractive destinations to outsource different services, according to studies by consulting firms such as McKinsey and Ryan Strategic Advisory.
What is the reason for this, and why is it striking to me to inquire a little about the industry’s success?
Because it is a true example of the work that can generate government and private sector together when a vision of development and improvement of communities is shared.
Especially considering what is coming for the growth of many industries in the country.
Opportunity and growth development:
South Africa has recorded the highest economic growth across the African continent, currently surpassing 55 million consumers.
As part of the world’s emerging economies, it has turned a blind eye to diverse investors seeking to expand its services with talent in the region.
Although, in past years, particularly between 2013 and 2016, falls were recorded from 1.9 to 1.3.
The return to growth forecasts offset this until 2023, exceeding 2.3%.
It gets even more interesting when we get into the estimated value of the entire BPO industry with a presence in the country.
According to data presented by Grand View Research, since 2019, the industry has generated a total value of USD 1.4 billion.
Added with the projection of growing 1.3% until 2027, ensuring more trust between companies.
An industry that has been established as a result of innovation:
Outsourcing through offshore and nearshore services has been faster in recent years, thanks to the competitiveness they have presented for voice and voiceless services.
This has been achieved by implementing modern technology that facilitates processes, such as using tools based on artificial intelligence.
The efforts made in the education sector to provide more opportunities to the population and to offer talent, especially young people, in different disciplines are pretty interesting.
Call center services have become more attractive yearly because of its language education programs, teaching English, French & Spanish.
Government and private sector working together:
As I mentioned, one of the most significant factors is the work complemented by these two entities.
As part of the development plan in South Africa, both government and companies have established special agreements to incentivize investment with a common goal.
The one that has stood out and is related to the possibilities that have been presented for the industry and its specialists is the Global Business Services Master plan.
Intending to create more than 500,000 jobs by 2030, the master plan is the first agreement to stimulate investment in the BPO industry.
This is due to the excellent talent for high-demand services in the telecommunication, energy, and IT solutions sectors.
The strategy consists of investments that have exceeded $3.5 million, aimed at infrastructure and technology related to their respective activities.
Yes, it is an ambitious plan, but it demonstrates efficient capacity when we unite these two entities with a common goal: to provide benefits and employment to their individuals.
The outlook for South Africa, in terms of development not only for the BPO industry but the overall economy, looks very promising.
The variables presented in terms of why the country turns out to be one of the main attractions will undoubtedly boost many opportunities.
In Redial BPO, the attractiveness of South Africa has previously been exposed, which is why this year, the initial investments in the country have been confirmed and currently operating in 2023.
Offering more jobs and specialized services.
Much remains to be analyzed and verified, but the future looks promising for all actors involved.
Thank you for reading. Would you like to read more about the BPO industry?
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