South Africa’s outsourcing sector adds 14K jobs, $717Mn revenue

CAPE TOWN, SOUTH AFRICA — South Africa’s Global Business Services (GBS) sector continues to thrive, creating over 14,000 jobs between January and September 2024. This rapid expansion also generated nearly ZAR13.6 billion (US$717 million) in export revenue, according to Business Process Enabling South Africa (BPESA).
Often referred to as the business process outsourcing (BPO) sector, the GBS industry is a cornerstone of South Africa’s economic recovery plan. It aims to create 500,000 new jobs by 2030 under a master plan led by the Department of Trade, Industry and Competition (DTIC), BPESA, and Harambee Youth Employment Accelerator.
Youth and women drive workforce growth
Youth employment remains a standout feature of the sector’s growth. Of the 14,000 newly created jobs, 12,564 were filled by young South Africans. Women also play a significant role in shaping the industry’s workforce.
BPESA Chairperson Zain Patel emphasized South Africa’s appeal to international investors: “In the last year, 10 new international BPO operators have chosen to invest in South Africa. This reaffirms SA’s position as the third most attractive offshoring destination in the world.”
Global competitiveness and strategic investments
Since 2022, South Africa has attracted 30 international investors, with 22 converting their interest into active investments. These include 12 BPO operators and 10 end-user clients, expected to create an additional 13,000 to 17,000 jobs within two years.
The sector’s global competitiveness is bolstered by cost-effective services and targeted strategies for key markets like the United Kingdom and the United States. Currently, over half of globally-focused workers serve UK clients, while nearly a third cater to U.S.-based operations.
BPESA CEO Reshni Singh noted, “[South Africa] is significantly more cost-effective than markets such as Poland and Malaysia. Initiatives such as the GBS incentives and cost management strategies… also made the country comparable with locations such as Jamaica, Egypt, and the Philippines, which are our main competitors.”
Public-private partnerships propel growth
The success of the GBS sector is underpinned by collaboration between government entities, industry stakeholders, and social partners. Singh highlighted that advancements in artificial intelligence (AI) and evolving market conditions present both challenges and opportunities for the sector.
“We are dedicated to building a sustainable ecosystem that empowers local communities and enhances our global competitiveness,” Singh concluded.
As one of South Africa’s fastest-growing industries, the GBS sector not only addresses unemployment but also strengthens its position as a global outsourcing powerhouse.