South Africa Business Process Outsourcing Market Size, Share & Trends Analysis Report for The Service (Customer Services, Finance & Accounting) As well as By End-use (BFSI, IT & Telecommunications), And Segment Forecasts, 2020 – 2027

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The South Africa business process outsourcing market size was valued at USD 1.4 billion in 2019 and is anticipated to grow at a compound annual growth rates (CAGR) in the range of 13.2 percent from 2020 until 2027. This market’s growth is characterized by advancements in technology, continuing innovation, as well as a rising competition, a trend that is expected to continue for the period of forecast. Controlling operating costs, harmonize processes, concentrate on core competencies and find skilled workers is expected to propel markets in the coming years. South Africa has been home to numerous call center operations over many years, and has since gained international recognition as a preferred and reliable offshore outsourcing location.

It also ranks as one of the top places to go to source Global Business Services – or outsourcing business processes. The right expertise, a massive workforce, lower cost, and easy-to-understand neutral English accents are a few of the primary reasons prompting companies to consider South Africa among their preferred outsourcing destinations. With a focus on the use of analytics as well as Artificial Intelligence (AI)-driven solutions, South Africa has a larger number of actuarial resources compared to India and has the ability to offer support in several languages, including French as well as Spanish. The use for Artificial Intelligence (AI) and robotics as a complement to a strategy for human resources management could aid the companies in BPO companies in 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 development of the market in the coming future. Additionally, Business Process Enabling South Africa (BPESA), an industry body for the Top BPO companies in Africa industry body, has played a significant role in encouraging the sector’s growth through supporting the development of skill by sharing best practices and providing its members with accessibility to various business network and associations that are driving and influencing this sector’s shift to technologically-informed economy. In addition, it is worth noting that the South African government has introduced various tax incentives and programs to create infrastructure and supporting skills. One of them are known as the Monyetla Work Readiness Programme.

The primary focus of the program is to improve the pool of employable entry-level employees. By utilizing The Monyetla Work Readiness Program, BPO employers lead a collaborative approach to find and train entry-level employees. These initiatives have helped create young work opportunities and thus contributing to the region’s revenue from exports by offshoring services. The BPO sector in SA has been growing continuously which has created new opportunities for workers, subsequently playing a decisive role in the region’s growth. Outsourcing service providers think the fact that South Africa enjoys better opportunities when compared to other nations in Africa for providing BPO services to businesses. Cape Town has particularly emerged as an ideal BPO destination of choice.

Services Insights

The customer service segment dominated the market with a share exceeding 31% in 2019 and is projected to grow with the fastest growth rate from 220-2027. This growth is attributed to the rising number of service centers that necessitate online and offline technical assistance. Customer service BPOs are focused on handling inquiries from customers through email, chat, phones social media platforms and other channels. The customer service BPO industry is thriving across Cape Town and has risen significantly in the past few years and is likely to experience significant growth over the coming years. Furthermore, South Africa holds an advantage in providing customer support BPO services. The capability to help companies lower their costs with a rapid transition to remote working due to the Covid-19 outbreak has made South Africa’s customer service centers a superiority over other hubs.

The accounting and finance segment is anticipated to grow at a rapid rate of 13.6% during the forecast period. The advantage of finance and accounting BPO services in the reduced cost for financial functions is also driving their adoption across several financial institutions in the country. South Africa is steadily advancing in the field of international service delivery to the financial industry. Many financial institutions are increasingly settling on South Africa for establishing their African back-office shared services hubs to be one of their delivery infrastructures worldwide.

End-of-use Information

The IT and telecommunications segment has dominated the market in the region, with a market share of more than 35% in the year 2019. The telecommunication and IT sectors is among the largest users of BPO services. In the IT space, South Africa has performed an essential role in the area of technical helpdesk and service desk because of its remarkable voice skills. Additionally, the country is comprised of a significant number of IT graduates with relevant technical expertise, which can reduce the obligation and the expense of training on the part of companies. South Africa continues to remain one of the leading locations for outsourcing IT services owing to the rapidly expanding group of businesses. These companies provide IT-focused solutions to a variety of industries through websites, development and architecture, and platform and application development. The rising ICT spending in the country , for regular maintenance of the communications and IT systems in place and replacement of obsolete systems will likely fuel market’s growth.

This BFSI segment is expected to experience the highest CAGR during the forecast time. The accessibility of a highly skilled workforce, which includes Chartered Financial Analysts (CFAs), Chartered Accountants (CAs), and actuaries, has been the driving force behind success for the country in this field. Moreover, global banks are now choosing South Africa for the delivery of intricate banking, for example, life insurance and fund accounting processes. The country delivers vast volumes of voice services in the field of insurance, including commission handling, the processing of claims, and also policy administration.

Key Companies & Chart Share Information

The market is highly competitive since the majority of major firms are working in enhancing their presence on the market through various strategies for business such as partnership, mergers & acquisitions, and product development. These strategies allow companies to expand their geographic reach and broaden their offerings to market, both in the national and international. For instance, in August 2020 WNS (Holdings) Ltd has launched EXPIRIUS the first-ever customers’ experience (CX) solution that integrates human-assisted design with AI-driven conversations information to enhance customer experiences. The main players operating on 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

The report predicts growth in revenue at the national levels and provides an analysis on the latest industry trends between 2016 and 2027 in every sub-segment. For this report, Grand View Research has subdivided it into the South Africa business process outsourcing market report on the basis of final-use and service:

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

    • Finance & Accounting

    • Human Resources

    • Knowledge Process Outsourcing (KPO)

    • Procurement & Supply Chain

    • Customer Services

    • Others

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

    • Banking, Financial Services, and Insurance (BFSI)

    • Healthcare

    • Manufacturing

    • IT & Telecommunication

    • Retail

    • Others

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