There is a South Africa business process outsourcing market size was estimated at USD 1.4 billion during the year 2019 and is expected to grow at a compound annual growth rates (CAGR) of 13.2 percent from 2020 until 2027. The market’s growth is led by technological advances, continued innovation, and intensifying competitiveness, which is expected to continue through the forecast period. Controlling operating costs, integrate processes, concentrate on core competencies, and attract skilled talent will drive markets in the coming years. South Africa has been home to many call center operations for many years, and thus has gained global recognition as a favorite and reliable offshore outsourcing location.

It also ranks as one of the leading destinations when it comes to Global Business Services – or outsourcing business processes. A high level of expertise, a huge talent pool, lower expenses and easy-to-understand English accents are just a few of the most important factors leading companies to think about South Africa among their preferred outsourcing destinations. With the emphasis on data analytics, as well as Artificial Intelligence (AI)-driven solutions, South Africa has a larger quantity of actuarial professionals as opposed to India and can offer assistance in a variety of languages, including French and Spanish. The utilization for AI and robotics as a complementary strategy for human resource management could also help the incumbents of South Africa BPO industry. South Africa BPO industry in fighting against their rivals in Europe and the Middle East & Africa.

This is likely to boost development of the market in the coming future. Additionally, Business Process Enabling South Africa is an industry body for the African Business Process Outsourcing industry body is playing a key part in encouraging the industry’s expansion through assisting with skill development by sharing best practices and giving its members access to other business networks & associations that support and help the industry’s transformation into the digital age. In addition to that, The South African government has introduced several tax incentives and schemes to create infrastructure as well as support for skilled workers. One of the most notable initiatives includes known as the Monyetla Work Readiness Programme.

The primary focus of this program is to increase the number of entry-level workers who can be employed personnel. The program is based on the Monyetla Work Readiness Programme, BPO employers lead a group approach to recruit and train entry-level personnel. Such initiatives are creating youth employment opportunities , which in turn contribute in the region’s export income from offshoring services. There is a afribpo sector in SA is constantly growing, offering new job opportunities as well as playing a crucial part in the region’s development. Outsourcing service providers believe it is because South Africa enjoys better opportunities as compared to other countries in Africa in the provision of BPO services to businesses. Cape Town has particularly emerged as a BPO location preferred by BPO providers.

Service Insights

Customer service was the most dominant segment in the market, with a share of over 31% in 2019 and will expand further by the fastest rate of growth from 220 until 2027. This growth is attributed to the increasing number of service centers which require tech support that is available online as well as offline. Customer service BPOs specialize in handling customer queries generated through phone, chat, email, social media platforms, and other channels. The customer service BPO industry is flourishing at the moment in Cape Town and has risen rapidly over the last few years and is likely to grow significantly in the next few years. Moreover, South Africa holds an advantage when it comes to services for customers BPO services. The capability to help companies cut costs overall, coupled by a swift transition towards remote work operations owing to the Covid-19 virus has given south africa’s centers for customer service a superiority over the other hubs.

The finance & accounting segment will grow at a substantial growth rate of 13.6 percent over the forecasted period. The benefits of finance and accounting BPO services for reduced cost for financial functions is also driving their acceptance across several financial institutions in the country. South Africa is steadily advancing in the area of international service delivery to the industry of financial services. Numerous financial institutions are becoming increasingly inclined to South Africa for establishing their African back-office shared services hubs as components of their worldwide delivery network.

End-use Information

The segment of IT and telecommunications has dominated the market in the region, with a share of greater than 35% in 2019. The IT and telecoms sector is among the biggest users of BPO services. In the IT sector, South Africa has performed significant work in the area of technical helpdesk and service desk due to its impressive voice skills. Also, the country is composed of a significant number of IT graduates with relevant technical expertise, which means that it reduces the burden and the expense of training on the part of businesses. South Africa continues to remain one of the most popular locations for outsourcing IT services thanks to the fast-growing cluster of companies. These companies provide IT-focused solutions to a variety of industries that include the design and development of websites, and application and platform development. The rising ICT spending in the nation for the regular maintenance of the current IT and communication systems and replacement of old systems will drive industry’s growth.

This BFSI segment is anticipated to achieve the highest CAGR during the forecast period. Its easy access to competent workforce, such as Chartered Financial Analysts (CFAs), Chartered Accountants (CAs) and actuaries, have been the primary driver for success for the country in this industry. Furthermore, international banks are now choosing South Africa for the delivery of complex banking, for example, life insurance and fund accounting. South Africa is a major provider of voice services in the insurance industry which includes commission handling, claims processing, as well as policy administration.

Key Companies and Research on Share of Market

The marketplace is extremely in competition, and many major firms are working in enhancing their presence on the market through various strategies for business such as mergers and acquisitions, partnerships and product development. These strategies help organizations expand their business geographically and enhance their offerings on market, both in the national and international. For example, in August 2020, WNS (Holdings) Ltd was the first to launch EXPIRIUS the first-ever user experience (CX) solution that integrates human-assisted design with AI-driven conversations insights to improve the customer experience. A few of the main players operating in South Africa’s South Africa business process outsourcing market are:

  • Accenture Plc

  • Amdocs

  • Capgemini

  • HCL Technologies Ltd.

  • IBM Corp.

  • Infosys Ltd. (Infosys BPM)

  • NCR Corp.

  • Sodexo

  • TTEC Holdings, Inc.

  • Wipro Ltd.

  • Mango5 BPO

  • Indox (PTY) Ltd.

  • Outworx Contact Centre

  • SA Commercial

  • Talksure Group

  • Boomerang Marketing

  • IContactbpo

  • 121 BPO Services

  • Altron

  • The IT Guys

  • Merchants SA (Pty) Ltd.

  • CCI South Africa

  • Capita plc

  • Digicall Group

  • DSG Group

  • Startek

  • WNS (Holdings) Ltd.

  • Webhelp

  • O’Keeffe & Swartz

  • Ignition Group

  • Rewardsco

  • Teleperformance SE

  • Encore Capital Group

  • Pra Group, Inc.

  • Paschoalotto Logo

  • Pioneer Credit

  • Credit Corp Group

  • Collection House Ltd.

Segments Covered by the Report

This report anticipates revenue growth at the national levels as well as a review of the current trends in the industry from 2016 through 2027 in every sub-segment. For this report, Grand View Research has separated into sub-segments the South Africa business process outsourcing market report on the basis of use and service:

  • Service Outlook (Revenue USD Million, 2016 – 2027)

    • Finance & Accounting

    • Human Resources

    • Knowledge Process Outsourcing (KPO)

    • Procurement & Supply Chain

    • Customer Service

    • Others

  • Use Outlook for End-Use (Revenue, USD Million (2016 – 2027)

    • Banking, Financial Services, and Insurance (BFSI)

    • Healthcare

    • Manufacturing

    • IT & Telecommunication

    • Retail

    • Other

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