Cape Town’s BPO sector creates 8,000 jobs, injects $149Mn in 2023
CAPE TOWN, SOUTH AFRICA — The Business Processing Outsourcing (BPO) sector significantly bolstered Cape Town’s economy, creating nearly 8,000 jobs and injecting ZAR2.8 billion ($149 million) in 2023.
This data comes from the Invest in Cape Town Regional Market Analysis and Intelligence 2023/24 report, which highlights the sector’s role as a catalyst for economic growth.
The sector’s collaboration with stakeholders, including local service providers like transportation operators, IT infrastructure providers, and training institutions, has fostered an environment conducive to attracting foreign investment.
Collaborative success
The BPO sector’s collaborative supply chain and sector diversity positioned Cape Town as a premier destination for outsourcing and offshoring needs.
“In total, the sector accounts for more than 55,000 jobs. This achievement has been made possible through strong partnerships with funders from the City of Cape Town, provincial government, and national government, most especially to accelerate the development of the right skills programs,” the report noted.
Continued growth
The BPO sector’s rapid growth in the Western Cape has made it a powerful economic driver. According to CapeBPO, for every offshore BPO job based in South Africa, ZAR350,000 ($18,700) in foreign revenue is injected into the economy.
With approximately 100,000 BPO jobs in South Africa, the majority in the Western Cape, this translates to ZAR35 billion ($1.87 billion) in national economic contributions.
CapeBPO, a strategic business partner for the City of Cape Town and the Western Cape, is responsible for the sector’s growth and development.
The sector’s expansion shows no signs of slowing down, with Luxembourg-based BPO operator Foundever setting up operations in Cape Town in May and planning to employ 3,500 people by 2026.
Additionally, Philippines-headquartered group Sourcefit announced in March that it would establish operations in the city.
Future prospects
The report highlights South Africa’s adeptness at catering to the sophisticated requirements of offshore BPO operators.
“Cape Town’s BPO sector exhibits remarkable diversity, catering to clients from a wide range of industries and source locations, particularly from the UK and the US. From customer support and technical assistance to finance and accounting, the industry provides.”
Cape Town is well-positioned to continue attracting international BPO companies. The sector’s growth trajectory underscores its vital role in the city’s economic landscape, promising continued job creation and economic contributions in the next years.
