Research: South Africa shows great promise in BPO

Recent data from global industry analyst Frost & Sullivan shows great promise for the Business Process Outsourcing (BPO) sector in South Africa.

Ishe Zingoni, an industry analyst at Frost & Sullivan, explained to Business Tech Magazine: “The call centre market in South Africa is well-established and highly sophisticated in terms of technology adoption and services offered.”

The South African Business Process Outsourcing (BPO) and contact centre market was valued at $1.08 billion in 2010, and it is expected to reach $3.06 billion by 2016. This represents compound annual growth rate (CAGR) of 19.4% from 2010 to 2016.

The F&S research cites India and the Philippines as the main competition for business within our sector, however the strong cultural affinity with customers in the UK and USA was also noted as one of the key differentiators helping South Africa to offer a better service than these locations.

The excellent technical infrastructure and strong government support was noted as reasons to work with the region. The most negative comment noted by F&S was the high cost of telecommunications in South Africa.

If the telecoms companies start matching international rates then it will be hard to beat BPO from South Africa in terms of cost and quality of service – I hope the telcos are listening.

View of Cape Town, South Africa

Photo by United Nations licensed under Creative Commons

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This entry was posted in Advisory, Contact Centers, Current Affairs, Outsourcing, South Africa and tagged , , , , , , , , , , , , , , . Bookmark the permalink.

2 Responses to Research: South Africa shows great promise in BPO

  1. a says:

    India has a market of $59 billion whereas south Africa has only $1.08 billion and Philippines are also much farther in statistics than India

  2. In India,there are many BPO companies which delivers good outputs with the best quality and it is always cost effective when compared to many other countries.

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