South Africa’s BPO sector adds 8,847 jobs in H1 2024, boosts revenue
CAPE TOWN, SOUTH AFRICA — South Africa’s business process outsourcing (BPO) sector, also known as the global business services (GBS) sector, has achieved significant growth in job creation and export revenue.
According to the latest quarterly GBS Sector Job Creation Report by Business Process Enabling South Africa (BPESA), the sector added 8,847 jobs from January to June this year. This expansion contributed a substantial $142 million (R2.5 billion) to the country’s export revenue.
Youth empowerment drives job growth in BPO sector
A key aspect of this growth is its focus on empowerment, with 60% of the new positions designated as empowerment roles. Notably, 88% of these jobs have been filled by South Africa’s youth, emphasizing the sector’s commitment to addressing unemployment among young people.
Reshni Singh, CEO of BPESA, highlighted the importance of this initiative: “We are driving up job creation in areas where it matters most — underserved communities and the youth.”
Strategic partnerships propel South Africa’s BPO expansion
The BPO sector is identified as a crucial driver for reducing unemployment. The government prioritizes it as one of South Africa’s fastest-growing sectors and plans to create 500,000 new jobs by 2030.
BPESA has partnered with the Department of Trade, Industry, and Competition and Harambee Youth Employment Accelerator to develop a master plan for achieving these employment targets.
International investment strengthens South Africa’s offshoring appeal
South Africa ranks as the third most attractive offshoring destination globally. The report highlights significant international investment from the United States and the United Kingdom, reinforcing South Africa’s status as a preferred offshore delivery location.
The largest sectors serviced from South Africa include energy and utilities (30%), insurance (20%), and retail and e-commerce (14%).
Singh noted that these sectors heavily rely on digital skills, which will be crucial for future growth.
He added that “attention and investment in growing such skills will be a key, especially when it comes to finding the balance between technical and soft skills in an AI-driven world.”
Future prospects for economic stability
BPESA’s efforts focus on immediate job creation and long-term economic stability through foreign direct investment. The organization aims to enhance South Africa’s appeal as an investment destination by fostering global collaboration and leveraging local talent.
Singh concluded by emphasizing the mission to improve lives while maintaining South Africa’s status as a desirable investment hub: “By partnering with government and the private sector, we are focused on co-creation and collaboration in critical areas that will best serve the sector and country at large.”
