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

It is estimated that the South Africa business process outsourcing market size was USD 1.4 billion as of 2019 and is predicted to expand at a compound annual growth rates (CAGR) of 13.2 percent between 2020 and 2027. The growth of the market is characterized by technological advances, continuing innovation, as well as a rising competition, a trend which will continue to grow over the forecast time. Controlling operating costs, harmonize processes, concentrate on core competencies and find skilled workers is anticipated to drive forward the market over the next years. South Africa has been home to many call center operations over many years, and has gained global recognition as a favorite and reliable offshore outsourcing location.

It is also ranked as one of the leading locations 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 a few of the most important factors encouraging companies to consider South Africa among their preferred outsourcing destinations. With a focus on Analytics and Artificial Intelligence (AI)-driven solutions, South Africa has a larger quantity of actuarial professionals as compared to India and has the ability to offer support in a variety of languages, including French in addition to Spanish. The use technology such as artificial intelligence and robotics in conjunction with a strategy for human resources management can also assist incumbents of the South Africa BPO industry in being competitive with their counterparts in Europe and in the Middle East & Africa.

This is likely to increase the industry’s growth in the near future. In addition, Business Process Enabling South Africa, that is the Best African BPO company industry body has played a key role in helping to boost the industry’s expansion through assisting with skill development and sharing best practices and providing its members with an access point to additional business networks & associations that facilitate and guide this sector’s shift to the new economy of digital. Additionally to that, The South African government has introduced several tax incentives and schemes to establish infrastructure and support for skills. One of the most prominent programs can be described as monyetla, which is the Monyetla Work Readiness Programme.

The primary focus of this program is to broaden employment opportunities for entry-level employees. Through the Monyetla Work Readiness Program, BPO employers lead a collaboration approach to hire and train entry-level employees. These initiatives have helped create young employment opportunities , which in turn contribute in the region’s export income from offshoring. It is evident that the afribpo sector in SA is growing constantly and is bringing new opportunities for employment and, consequently, playing a pivotal role in the region’s growth. Outsourcing service providers think that South Africa enjoys better opportunities relative to other countries in Africa to provide the business services that outsourcing companies require. Cape Town has particularly emerged as a BPO destination that is a preferred destination.

Services Insights

The segment of customer service dominated the market, with a share exceeding 31% in 2019 , and will grow at the highest CAGR of 220 to 2027. This growth is attributed to the growing establishment of service centers that necessitate online and offline technical assistance. Customer service BPOs are devoted to handling customer inquiries made via phone, chat, email social media platforms and many other channels. It is a fact that the customer support BPO industry is flourishing within Cape Town and has risen significantly over the last few years and is expected to see significant growth in the next few years. Furthermore, South Africa holds an advantage when it comes to the customer care BPO services. The capability to aid companies lower costs with the swift shift to remote work operations as a result of the Covid-19 virus has given customers in South Africa’s service centres an edge over other hubs.

The finance & accounting segment is anticipated to grow at a rapid rate of 13.6% in the forecast. Benefits of finance and accounting BPO services for lower cost of financial functions is also driving their adoption over a wide range of financial institutions in the country. South Africa is steadily advancing in international service delivery to the industry of financial services. Many financial institutions are gradually preferring South Africa for establishing their African back-office shared services hubs to be components of their worldwide delivery network.

End-of-use Information

The segment IT and Telecommunication has dominated the market in the region, by capturing more than 35% as of the year. The telecommunication and IT sectors is one of the most prominent users of BPO services. In the IT sector, South Africa has performed an important function in the realm of technical helpdesk and service desk because of its remarkable capabilities in the field of voice. Also, the country is composed of a substantial number of IT graduates with appropriate technical abilities, which means that it reduces the responsibility and the cost of training on the part of businesses. South Africa continues to remain one of the prominent locations for outsourcing IT services due to the rapidly expanding group of firms. These firms provide IT-focused solutions to various industries with respect to web design and development, and applications and platform development. The rising ICT expenditure across the country for regular maintenance of the communications and IT systems in place and replacement of obsolete systems are expected to propel the segment growth.

The BFSI segment is predicted to grow at the highest rate throughout the forecast period. A readily available trained workforce, that includes Chartered Financial Analysts (CFAs), Chartered Accountants (CAs), and actuaries, has been the driving force behind success for South Africa in this industry. Global banks are choosing South Africa for the delivery of complex work in banking areas, such as life financial and insurance procedures. The country provides huge volumes of voice processing within the insurance sector that includes commission handling, claims processing and policy administration.

Key Companies & Chart Share Information

The marketplace is extremely competitive since the majority of major companies are working on expanding their market reach by implementing various business strategies including mergers and acquisitions, partnerships as well as product development. These strategies can help companies expand their business geographically and enhance their offerings across the local and international markets. For example, in August of 2020 WNS (Holdings) Ltd has launched EXPIRIUS an exclusive client experience (CX) solution that integrates human-assisted designs with AI-driven conversational insights to help improve customer experiences. Some of the leading players 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 at the national level and provides an analysis on the latest trends in the market between 2016 and 2027 in every sub-segment. For the purpose of this report, Grand View Research has broken down this South Africa business process outsourcing market report based on final-use and service:

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

    • Finance & Accounting

    • Human Resources

    • Knowledge Process Outsourcing (KPO)

    • Procurement and Supply Chain

    • Customer Service

    • Other

  • “End-user” Outlook (Revenue, USD Million (2016 – 2027)

    • Banking, Financial Services, and Insurance (BFSI)

    • Healthcare

    • Manufacturing

    • IT & Telecommunication

    • Retail

    • Others