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South Africa Business Process Outsourcing Market Size, Share, and Trends Analysis Report for Service (Customer Services, Finance & Accounting) and By End-use (BFSI, IT & Telecommunications) and Segment Forecastsfor 2020 – 2027

This South Africa business process outsourcing market was worth USD 1.4 billion back in the year 2019 and is predicted to expand at a compound annual growth rate (CAGR) which is 13.2 percent between 2020 and 2027. The growth of the market is characterized by technological advances, constant innovation, and growing competition, which is expected to continue for the forecast time. The need to manage operating costs, harmonize processes, focus on core competencies, as well as recruit skilled professionals is anticipated to drive forward the market over the next years. South Africa has been home to numerous call center operations for in the past couple of years and has hence garnered global recognition as a top and reliable offshore outsourcing destination.

It is also ranked as one of the top places to go that offer Global Business Services – or outsourcing business processes. With a sufficient expertise, an extensive talent pool, lower expenses as well as easy-to understand neutral English accents are just a few of the primary reasons leading companies to think about South Africa among their preferred outsourcing destinations. In the context of the use of analytics as well as Artificial Intelligence (AI)-driven solutions, South Africa has a larger number of actuarial resources than India and provides support for a wide range of languages including French and Spanish. The use to use Artificial Intelligence (AI) and robotics as a complement to a strategy to manage human resources can also assist incumbents of South Africa BPO industry. South Africa BPO industry in facing their competition in Europe and in the Middle East & Africa.

This will, in turn, be expected to propel development of the market in the coming future. In addition, Business Process Enabling South Africa (BPESA), one of the African Business Process Outsourcing industry body has played a crucial role in helping to boost the industry’s growth by supporting skill development as well as sharing best practices and providing its members with an access point to additional business networks and associations that facilitate and guide the transition of the industry into the new economy of digital. Additionally to this, the South African government has introduced various tax incentive and schemes for the development of infrastructure as well as support for skilled workers. One of the most prominent programs include the Monyetla Work Readiness Programme.

The primary focus of this program is to increase the quantity of employed entry-level employees. By utilizing programs like the Monyetla Work Readiness Programme, BPO employers lead a consortium approach to recruit and train entry-level personnel. These initiatives create youth employment opportunities , which in turn contribute in the region’s export income from offshoring. It is evident that the BPO business in SA is growing at a rapid pace and is bringing new opportunities for employment as well as playing a crucial role in the region’s economic development. Outsourcing service providers think they are in a position where South Africa enjoys better opportunities in comparison to other countries in Africa to provide service to business. Cape Town has particularly emerged as an ideal BPO destination that is a preferred destination.

Services Insights

The service sector for customers dominated the market with a market share greater than 31% in the year 2019 and is expected to grow by the fastest rate of growth from 220-2027. This rise is due to the rising number of service centers that necessitate the availability of technical support online and offline. Customer service BPOs focus on managing inquiries from customers through telephones, chat, emails and social media platforms as well as other channels. Customers can contact them via chat, email, social media platforms and other channels. BPO industry is thriving within Cape Town and has risen dramatically in recent years, and is predicted to experience significant growth over the next few years. Moreover, South Africa holds an advantage when it comes to services for customers BPO services. The capacity to assist businesses reduce their overall expenses coupled with a speedy shift towards remote work operations owing to the Covid-19 outbreak has made the customer services centers of South Africa a superiority over the other hubs.

The accounting and finance sector will grow at a rapid rate of 13.6% over the forecast period. The benefit of finance & accounting BPO services in lower cost of financial tasks is driving their use across a variety of financial institutions within the country. South Africa is steadily advancing in the field of international service delivery for the financial services industry. A variety of financial companies are shifting to South Africa for establishing their African back-office shared service hubs as components of their worldwide delivery network.

End-use Information

The segment IT and Telecommunication is the most dominant segment in the market, with a market share of more than 35% in 2019. The telecom and IT industry is among the largest users of BPO services. In the IT area, South Africa has performed an essential function in the area of technical helpdesk and service desk due to its extraordinary capabilities in the field of voice. Further, the nation is comprised of a substantial number of IT graduates who have the relevant technical expertise, which makes it easier to reduce the obligation and the cost of training on the part of businesses. South Africa continues to remain one of the top locations for outsourcing IT services due to the rapid growth of the cluster of businesses. They provide IT-oriented solutions to various industries including web design and development, and the development of platforms and applications. The increasing ICT spending in the nation for the regular maintenance of existing IT and communication systems as well as the replacement of outdated systems will likely fuel segment growth.

The BFSI segment is expected to achieve the highest CAGR during the forecast period. The ease of access to a skilled workforcethat includes Chartered Financial Analysts (CFAs), Chartered Accountants (CAs) and actuaries, has been the main driver of success for South Africa in this particular field. Moreover, global banks are choosing South Africa for the delivery of intricate banking, for example, life financial and insurance procedures. The country delivers vast volumes of voice communications related to insurance which includes commission handling, claims processing and policy administration.

Key Companies and Chart Share Information

The market is highly competitive as most of the major firms are working on improving their market presence by implementing various business strategies including partnerships, mergers and acquisitions and product development. These strategies aid organizations in expanding their reach geographically, and increase their offerings in international and national markets. For instance, in July 2020, WNS (Holdings) Ltd launched EXPIRIUS which is a distinctive client experience (CX) solution that integrates human-driven designs and AI-driven conversational data to improve customer experience. Some of the biggest players operating inside 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 in the Report

This report projects revenue growth on a country-wide basis and gives an analysis of the latest trends in the market from 2016 to 2027 across every sub-segment. To make this research, Grand View Research has segmented in the South Africa business process outsourcing market report based on service and end-use

  • Service Outlook (Revenue USD Million between 2016 and 2027)

    • Finance & Accounting

    • Human Resources

    • Knowledge Process Outsourcing (KPO)

    • Procurement & Supply Chain

    • Customer Services

    • Others

  • The end-user Outlook (Revenue USD Million from 2016 to 2027)

    • Banking, Financial Services, and Insurance (BFSI)

    • Healthcare

    • Manufacturing

    • IT & Telecommunication

    • Retail

    • Other

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