Business Process Outsourcing (BPO) is regarded as a significant business trend internationally. As many companies around the globe are facing increased production and labour costs, South Africa is emerging as a popular BPO destination. Over the past few years, South Africa has established itself as a global outsourcing destination for high-end BPO services, including financial services, legal services, insolvency and telecommunications services.
South Africa has been named “Offshoring Destination of The Year” twice in the last 5 years (2016 and 2018). Furthermore, in 2021, South Africa was voted “Most Favoured Global Offshore Customer Experience Delivery Location” after three consecutive years in 2nd place.
Many companies are choosing South Africa as their preferred BPO location because of the great benefits the country has to offer. We explain the benefits South Africa can offer over alternative offshore destinations:
By outsourcing to South Africa, your business could save a large amount of money as the labour costs are significantly lower than in the US, UK, Australia and Canada.
South Africa offers major cost savings to source destinations such as the UK, US, and Australia of at least 40 – 45% on a steady-state operating basis (including overheads). South Africa as a BPO destination also provides a viable and sustainable solution to the challenges and costs related to recruiting, training and equipment, with savings of nearly 50%. This is supplemented by a national BPS incentive through the Department of Trade and Industry (DTI) which pays prospective investors up to R290,000 per job created.
Time zone advantage
South Africa’s time zone (GMT+2) overlaps effectively with multiple time zones. The country’s time zone makes it the preferred choice for many European countries. South Africa’s capacity for round-the-clock high quality service at significantly lower costs appeals to all parts of the world. The country is able to offer both large and small offshore clients in the US, Australian and Canadian markets their night time or “downtime” customer support timelines, effectively allowing businesses in these regions to offer 24/7 customer support.
English is the de facto language of business and government in South Africa, making international communication effortless. In other BPO countries like the Ukraine or the Philippines, there is a level of training done for accent neutralisation, but training is not necessary for South Africans, as their accent is already neutral. The current population of English speakers in the country is estimated to be 16.5 million with 410,000 English speaking individuals added to the national workforce each year.
South Africa is a more favourable BPO destination because of it’s fluent English-speaking talent with neutral accents and high empathy levels.
Access to a highly qualified and affordable workforce
By outsourcing to South Africa, you can gain access to a highly qualified and affordable workforce. People in countries like South Africa are often overqualified and cannot find work, which means that you can gain access to a highly skilled workforce for a fraction of the cost.
South Africa is a country that embraces many different cultures which guarantees a general respect for other cultures. Having respect for and understanding other people’s cultures is imperative in the BPO industry as it is impossible to do work effectively in these regions without having an understanding of the people that you will be engaging with.
South Africa’s infrastructure, as a whole, is equivalent to that of Western Europe, from road and power through to education, healthcare and entertainment, making it a conducive business and investment destination.
An important factor that has helped South Africa become a preferred outsourcing destination is the country’s affordable domestic transport system and the SEACOM fiber-optic powered telecommunications network.
Partner with Affinity Solutions
At Affinity Solutions, we are uniquely positioned in Durban, South Africa and provide a wide range of BPO services for countries around the world including the US, UK, Australia and Canada. We offer professional outsourced business support to organisations involved in insolvency, finance, accounting, insurance, law, utilities, telecommunications, gaming and niche customer services markets.
We are compliant with all General Data Protection Regulation (GDPR), Data Protection Act (DPA), California Consumer Protection Act (CCPA) and Protection of Personal Information Act (POPIA) regulations and requirements.
If your business is considering outsourcing to South Africa, we are happy to discuss your needs, please do not hesitate to contact us.