Business

South Africa Business Process Outsourcing Market Size, Share and Trends Analysis Report For Customer Service (Customer Services, Finance & Accounting) As well as By End-use (BFSI, IT & Telecommunications) and Segment Forecastsfrom 2020 to 2027

The South Africa business process outsourcing market size was valued at USD 1.4 billion back in 2019 and is anticipated to grow at a compound annual rates (CAGR) of 13.2% from 2020 to 2027. The market’s growth is led by technological advances, continuing innovation, as well as a rising competition, a trend which is expected to continue through the forecast period. The need to reduce operational costs, align processes, concentrate on core competencies, and recruit qualified workers is expected to drive the market over the coming years. South Africa has been home to many call center operations for in the past couple of years which has led to its global recognition as a popular and reliable offshore outsourcing location.

It is also considered to be one of the top places to go with respect to Global Business Services – or outsourcing business processes. The right expertise, a massive pool of talent, less expensive, and easy-to-understand neutral English accents are just a few of the main reasons leading companies to think about South Africa among their preferred outsourcing destinations. With the increasing focus on data analytics, as well as Artificial Intelligence (AI)-driven solutions, South Africa has a larger amount of actuarial resources compare to India and provides support for a wide range of languages including French in addition to Spanish. The use technology such as Artificial Intelligence (AI) and robotics as a method of complementing for human resource management could also help the incumbents of BPO companies in the South Africa BPO industry in fighting against their rivals in Europe and the Middle East & Africa.

This, in turn, is expected to boost the development of the market in the coming future. Furthermore, Business Process Enabling South Africa is which is the Top BPO companies in Africa industry body has played a key role in encouraging industry expansion by assisting in the development of skills and sharing best practices and offering its members accessibility to various business network and associations that are driving and influencing the industry’s transformation 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 development of infrastructure and skills-related support. One of them are that of the Monyetla Work Readiness Programme.

The main objective of this program is the expansion of the number of entry-level workers who can be employed personnel. By utilizing it’s Monyetla Work Readiness Programme, BPO employers lead a consortium approach to recruit and train entry-level personnel. The initiatives have created youth employment opportunities and thereby contribute in the region’s export income from offshoring services. In the past, the BPO industry in SA continues to grow and is bringing new opportunities for employment as well as playing a crucial part in the region’s economic development. Outsourcing service providers think that South Africa enjoys better opportunities relative to other countries in Africa in providing the business services that outsourcing companies require. Cape Town has particularly emerged as an ideal BPO destination that is a preferred destination.

Service Insights

The service sector for customers dominated the market with a market share of over 31% in 2019 and will continue to grow at the fastest CAGR between 220 until 2027. This growth is attributed to the rapid growth of service centers, which requires online and offline technical support. Customer service BPOs are devoted to handling customer inquiries made via phone, chat, email or social media platforms and various other channels. This customer-service BPO sector is growing across Cape Town and has risen significantly over the last few years and is likely to witness significant growth in the future. Additionally, South Africa holds an advantage when it comes to services for customers BPO services. The capability to help companies reduce costs, along by a swift transition towards remote operations due the covid-19 pandemic, has earned customers in South Africa’s service centres a superiority over other hubs.

The accounting and finance segment is anticipated to grow at a rapid rate of 13.6 percent during the forecast time. The value of finance & accounting BPO services in cost reduction of finance tasks can also drive their acceptance across several financial institutions in the country. South Africa is steadily advancing in international services to the financial services sector. A variety of financial companies are increasingly settling on South Africa for establishing their African back-office shared services hubs as parts of global networks of delivery.

End-of-use Information

The IT and Telecommunication segment dominated the regional market with a market share of more than 35% as of the year. The telecommunications and IT sector is one of the leading users of BPO services. In the IT space, South Africa has performed an important role in the area of service desk and technical helpdesk because of its remarkable abilities in speaking. Also, the country is composed with a high percentage of IT graduates who have the pertinent technical skills, which helps reduce the responsibility as well as the cost of training on the part of companies. South Africa continues to remain one of the top destinations to outsource IT services due to the growing number of firms. These companies offer IT-focused solutions to various industry verticals with respect to website architecture and development, and application and platform development. The growing ICT spending in the nation for the regular maintenance of the current IT and communication systems and replacement of old systems are expected to fuel the market’s growth.

It is expected that the BFSI segment is expected to grow at the highest rate during the forecast time. The easy availability of a competent workforce, such as Chartered Financial Analysts (CFAs), Chartered Accountants (CAs) and actuaries have been the primary driver for success for South Africa within this field. In addition, global banks are turning to South Africa for the delivery of intricate banking and finance, including life insurance and fund accounting. The country offers a vast array of voice services within the insurance sector, including commission handling, claims processing, and policy administration.

Key Companies & Chart Share Information

The market is highly in competition, and many big companies are focusing on increasing their market share through various strategies for business like alliances, mergers and acquisitions and product development. These strategies allow companies to expand their geographic reach and broaden their offerings across international and national markets. For instance, in the month of August, 2020 WNS (Holdings) Ltd launched EXPIRIUS the first-ever Customer Experience (CX) solution that integrates the human-assisted design process with AI-driven insight to improve customer interactions. The main players in the 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 forecasts revenue growth on a country-wide basis and provides an analysis on the latest industry trends from 2016 through 2027 in each sub-segment. For the purpose of this research, Grand View Research has classified the South Africa business process outsourcing market report based on use and service:

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

    • Finance & Accounting

    • Human Resources

    • Knowledge Process Outsourcing (KPO)

    • Supply Chain & Procurement

    • Customer Services

    • Others

  • The end-user Outlook (Revenue, USD Million between 2016 and 2027)

    • Banking, Financial Services, and Insurance (BFSI)

    • Healthcare

    • Manufacturing

    • IT & Telecommunication

    • Retail

    • Others

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Check Also
Close
Back to top button