South Africa’s BPO sector to miss 500,000-job target: BPESA
- BPESA says South Africa’s GBS sector will not reach 500,000 jobs by 2030.
- The industry body expects about 150,000 more jobs by 2030 instead.
- The sector has created about 200,000 cumulative jobs since 2006.
- About 60% of South Africa’s GBS workforce serves U.K. clients.
JOHANNESBURG, SOUTH AFRICA — South Africa’s industry body for global business services (GBS) now expects the sector to add about 150,000 jobs by 2030, well short of the 500,000 cumulative jobs envisaged in the country’s 2021 master plan.
The sector, historically known as business process outsourcing (BPO), has created about 200,000 cumulative jobs since 2006.
A realistic target of 150,000
Reshni Singh, CEO of Business Process Enabling South Africa (BPESA), gave the revised outlook at a media briefing hosted by BPESA and Nutun, ITWeb reported.
“So, the highest growth scenario is what would have resulted in 500 000 jobs. Current performance sits between expanded and accelerated scenarios,” Singh said.
The master plan’s scenarios ranged from 250,000 to 500,000 jobs, she said.
“Realistically, we are saying we think there will be 150 000 more jobs between now (obviously taking this year into account) and 2030, as opposed to 500 000,” Singh said.
Singh said the lower estimate reflects the association’s view of AI and the growing complexity of the roles clients now require.
“We’ve seen post-COVID there’s a lot more interest for the more complex roles…those complex roles are not going to scale, which is another reason why the 500 000 is not going to be doable,” she said.
Beyond voice work
The government designated GBS during the COVID-19 pandemic as a sector to steer economic recovery, after it added jobs while others shed them.
Singh said the industry has moved beyond voice BPO, and BPESA is refining a professional services offer covering finance and HR, alongside digital and information technology outsourcing (ITO) work.
About 60% of the local workforce serves U.K. clients, with the U.S. the second-largest source market, followed by Australia and other parts of Europe.
BPESA, accredited by the Department of Trade, Industry and Competition, is the national industry body for BPO and links the industry with government.
The GBS master plan, signed in November 2021, aims to establish South Africa as a premier offshore customer experience and digital services destination.
For buyers, the revised outlook points to a market growing through higher-skill global business services (GBS) roles rather than sheer volume, which can mean deeper expertise but slower scaling of large teams.
Firms comparing offshore outsourcing options can review the top BPO companies in South Africa and ask how each is staffing complex finance, HR and digital work.
Related news
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- Nelson Mandela Bay emerges as SA’s next BPO hub · 14 Aug
- South Africa’s GBS sector bets on impact sourcing · 24 Jul
Disclosure: Outsource Accelerator uses AI tools in the backend of its editorial workflow. Every article is reviewed and verified by a human editor before publication.
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