This South Africa business process outsourcing market size was USD 1.4 billion in 2019 and is projected to increase at a compound annual percentage (CAGR) which is 13.2 percent between 2020 and 2027. The growth in the market is driven by advancements in technology, continued innovation, and intensifying market competition. This trend is expected to persist over the forecast time. The need for control of operating expenses, streamline processes, focus on core competencies, and employ qualified talent is anticipated to drive the market over the coming years. South Africa has been home to many call center operations for the last several years and thus has gained global recognition as a favorite and reliable offshore outsourcing destination.

It is also ranked as one of the leading destinations for Global Business Services – or offshoring business processes. Expertise and expertise that is adequate, a vast capacity of employees, lower costs as well as easy-to understand neutral English accents are among the key factors encouraging companies to consider South Africa among their preferred outsourcing destinations. With the increasing focus on analytical and Artificial Intelligence (AI)-driven solutions, South Africa has a larger quantity of actuarial experts as compare to India and offers support in multiple languages, such as French as well as Spanish. The use for artificial intelligence and robotics in conjunction with a strategy to manage human resources can aid incumbents of the South Africa BPO industry in competition with competitors in Europe and the Middle East & Africa.

This, in turn, is likely to boost market’s growth rate in the near future. In addition, Business Process Enabling South Africa is which is the African Business Process Outsourcing industry body has played an important contribution to promoting the industry’s growth by supporting skill development as well as sharing best practices and giving its members an access point to additional business networks and associations that are driving and influencing BPO’s move into an economy that is digital. Additionally to this, it is worth noting that the South African government has introduced various tax incentives as well as schemes for the establishment of infrastructure and support for skills. One of the most well-known initiatives are known as the Monyetla Work Readiness Programme.

The principal goal of this program is to broaden the amount of work-ready entry-level employees. The program is based on The Monyetla Work Readiness Program, BPO employers lead a team approach to recruit, and train entry-level staff. These initiatives provide young people with employment opportunities , which in turn contribute to the region’s export earnings by offshoring services. It is evident that the BPO business in SA is constantly growing, offering new job opportunities and, consequently, playing a pivotal role in the region’s development. Outsourcing service providers believe it is because South Africa enjoys better opportunities in comparison to other countries in Africa for providing outsource services for business. Cape Town has particularly emerged as a BPO location that is a preferred destination.

Service Insights

Customer service was the most dominant segment in the market with a market share of over 31% in 2019 and will continue to grow by the fastest rate of growth from 220-2027. This is due to the rising number of service centers which require the availability of technical support online and offline. Customer service BPOs are focused on handling customer inquiries made via email, chat, phones or social media platforms and many other channels. In Cape Town, the service BPO sector is growing across Cape Town and has risen rapidly over the last few years, and is predicted to see significant growth in the coming years. Moreover, South Africa holds an advantage in customer service BPO services. Its capability to assist businesses lower their costs with rapid progress towards remote operations due to the Covid-19 pandemic has earned its customer support centers in the country an edge over other hubs.

The finance and accounting sector is expected to grow at a rapid growth rate of 13.6 percent in the forecast. The value of finance & accounting BPO services for reduced cost for financial tasks is also driving their widespread adoption across numerous financial institutions throughout the country. South Africa is steadily advancing in the area of international services to the financial services sector. A variety of financial companies are slowly embracing South Africa for establishing their African back-office shared service hubs to be an element of the global distribution networks.

End-of-use Information

The segment for IT and telecommuting is the most dominant segment in the market, with a share of greater than 35% by the end of 2019. The telecommunication and IT sectors is one of the leading adopters of BPO services. In the IT area, South Africa has performed significant work in the field of the service desk and technical helpdesk because of its remarkable abilities in speaking. Additionally, the country is comprised of a significant number of IT graduates who have the pertinent technical skills, which, in turn, reduces the obligation and the cost of training for companies. South Africa continues to remain one of the most popular locations for outsourcing IT services owing to the rapid growth of the cluster of firms. These companies offer IT-related solutions to various verticals such as websites, development and architecture, and applications and platform development. The increasing ICT spending in the country for regular maintenance of the communications and IT systems in place and replacement of obsolete systems are likely to drive the industry’s growth.

This BFSI segment is predicted to register the maximum CAGR during the forecast period. The easy availability of a qualified workforce, comprising Chartered Financial Analysts (CFAs), Chartered Accountants (CAs), and actuaries, has been the key driver behind success for the country in this sector. Further, global banks are now choosing South Africa for the delivery of intricate banking and finance, including life insurance and fund accounting processes. The country offers a vast array of voice-based processes in the field of insurance, including commission handling, process of processing claims and policy administration.

Key Companies and Data on market shares

The market is highly competitive since the majority of major firms are working on improving their market presence by adopting various business strategies, such as mergers and acquisitions, partnerships as well as product development. These strategies allow companies to expand their geographic reach and broaden their offerings in national and international markets. For instance, in August 2020, WNS (Holdings) Ltd announced EXPIRIUS A unique customers’ experience (CX) solution that integrates human-assisted designs with AI-driven conversational data to improve 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 that are covered by the Report

This report forecasts revenue growth at the national levels and also provides an analysis of the latest trends in the market between 2016 and 2027 in each sub-segment. To make this report, Grand View Research has separated its South Africa business process outsourcing market report on the basis of service and end-use

• Service Outlook (Revenue USD Million from 2016 to 2027)

  • Finance & Accounting

  • Human Resources

  • Knowledge Process Outsourcing (KPO)

  • Procurement and Supply Chain

  • Customer Services

  • Other

• Final-use Outlook (Revenue, USD Million from 2016 to 2027)

  • Banking, Financial Services, and Insurance (BFSI)

  • Healthcare

  • Manufacturing

  • IT & Telecommunication

  • Retail

  • Others