BPO sector contributes $1.93Bn to South Africa’s economy
WESTERN CAPE, SOUTH AFRICA — South Africa‘s business process outsourcing (BPO) sector has made a significant economic impact, contributing ZAR35 billion ($1.93 billion) to the national economy.
The Western Cape, in particular, has become a prime destination for global BPO companies, employing and upskilling tens of thousands of local South Africans to deliver world-class professional business services to clients worldwide.
Economic impact of BPO jobs
According to CapeBPO, the strategic business partner responsible for the growth and development of the BPO industry in the Western Cape, each offshore BPO job in South Africa generates ZAR350,000 ($19,000) in foreign revenue.
With approximately 100,000 BPO jobs across the country and around 60,000 of these located in the Western Cape, the sector’s contribution to the economy is substantial.
“This means that for the approximately 100,000 BPO jobs countrywide, the majority of which (approximately 60,000) are right here in the Western Cape, [ZAR]35 billion goes into our national economy. The value that our talented people contribute on the world’s stage is impressive,” explained Provincial Minister of Finance and Economic Opportunities, Mireille Wenger.
Public-private partnerships driving growth
The growth of the BPO sector in the Western Cape is attributed to the concerted efforts of both private and public sector stakeholders.
The investment in skills development has created a robust and world-class talent pool to meet international demand.
This growth is supported by a dynamic public-private partnership involving local and provincial government entities, such as the City of Cape Town and the Western Cape Government, alongside the Operator community.
“The growth of the BPO sector in the Western Cape is a testament to the hard work and perseverance put into the promotion and mobilisation of the industry by our private and public sector stakeholders. The investment in skills development has created a steady and world-class supply of talent to cater to the clear international demand,” stated Clayton Williams, CEO of CapeBPO.
Ambitious economic plans
The Western Cape Government’s ambitious economic plan, ‘Growth for Jobs,’ is focused on enabling the private sector to grow and create jobs. This plan underscores the importance of nurturing the BPO industry to ensure its continued expansion and its role in addressing unemployment.
“As the WCG, we are immensely proud to partner, through our dedicated programs, with the determined and dedicated people investing in the BPO sector. BPO is a thriving and growing industry that must be nurtured if we are to enable the private sector to establish, expand and – critically – employ many more hundreds of thousands of South Africans,” concluded Minister Wenger.
The BPO sector’s significant contribution to the South African economy highlights the importance of continued investment and support to sustain its growth and the creation of meaningful employment opportunities for South Africans.
