Cape Town courts offshore call centers
CAPE TOWN, SOUTH AFRICA — The city of Cape Town is actively recruiting international Business Process Outsourcing (BPO) companies, according to Alderman James Vos.
Vos, who oversees economic development for the city, recently met with investors in London, United Kingdom (UK), as part of a trade mission organized by Wesgro, Cape Town’s investment promotion agency.
The goal is to capitalize on growing interest from companies in the United States (U.S.) and the UK companies looking to offshore call center operations.
According to the industry group Business Process Enabling South Africa (BPESA), South Africa handles 60% of UK companies’ offshore call volume.
Additionally, a recent survey by Ryan Strategic Advisory found that North American executives rank South Africa as their top choice for offshore customer service, ahead of the Philippines and India.
With high unemployment, especially among youth, Vos said the call center industry is seen as an opportunity for job creation in South Africa.
Although South Africa currently accounts for just 1% of the $262 billion global BPO market, that share is projected to quadruple to 4% by 2030 as more multinationals nearshore operations.
Cape Town’s call center workforce already numbers over 70,000. Last month, UK company Amplify5 opened a new office in Cape Town, with plans to expand to 4,000 seats across multiple locations.
The city has also invested in training programs to develop talent, including 1,000 unemployed youth from disadvantaged neighborhoods.
“I am excited to show businesses in key source markets why Cape Town is a leading African hub for investment and thus helping to develop more prospects for our communities,” Vos stated.
