South Africa Business Process Outsourcing Market Size, Share and Trends Analysis Report For service (Customer Services, Finance & Accounting) And By End-Use (BFSI, IT & Telecommunications) and Segment Forecasts, 2020 – 2027

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It is estimated that the South Africa business process outsourcing market was worth USD 1.4 billion by 2019 and is anticipated to grow at a compound annual growth of (CAGR) that is 13.2% from 2020 to 2027. This market’s growth is characterized by technological advancements, continual innovation and an increase in competition, a trend that is expected to continue over the period of forecast. Controlling operating expenses, improve processes, concentrate on core competencies and attract skilled talent is expected to propel markets in the coming years. South Africa has been home to many call center operations over the last several years and has hence garnered global recognition as a favorite and reliable offshore outsourcing destination.

It is also ranked as one of the top destinations for Global Business Services – or outsourcing business processes. A high level of expertise, a huge workforce, lower cost, and easy-to-understand neutral English accents are some of many factors leading companies to think about South Africa among their preferred outsourcing destinations. With a focus on analysis and Artificial Intelligence (AI)-driven solutions, South Africa has a larger number of actuarial resources opposed to India and can offer assistance in several languages, including French as well as Spanish. The use for AI and robotics as a method of complementing for managing human resources could aid the companies in BPO companies in the South Africa BPO industry in being competitive with their counterparts in Europe and in the Middle East & Africa.

This is expected to boost the development of the market in the coming future. Furthermore, Business Process Enabling South Africa, one of the African Business Process Outsourcing industry body has played an important contribution to promoting the industry’s growth through supporting the development of skill and sharing best practices and providing its members with accessibility to various business network and associations that are driving and influencing the sector’s transition into the new economy of digital. In addition to this, it is worth noting that the South African government has introduced various tax incentive and schemes for the establishment of infrastructure and skill-related support. One of these notable initiatives are that of the Monyetla Work Readiness Program.

The main goal of this program is to broaden employment opportunities for entry-level personnel. With it’s Monyetla Work Readiness Programme, BPO employers lead a consortia approach to recruit and train entry-level workers. This type of initiative is creating young jobs and contributing to the region’s export revenues through offshoring. A BPO sector in SA continues to grow and is bringing new opportunities for employment, subsequently playing a decisive impact on the region’s development. Outsourcing service providers believe it is because South Africa enjoys better opportunities in comparison to other countries in Africa to deliver BPO services to businesses. Cape Town has particularly emerged as an ideal BPO location that is a preferred destination.

Services Insights

The customer support segment was dominant in the market with a market share of more than 31% in the year 2019 and is expected to grow at the highest CAGR of 220 to 2027. This is due to the rising number of service centers that require tech support that is available online as well as offline. Customer service BPOs specialize in handling enquiries from customers made through telephones, chat, emails, social media platforms, and many other channels. The customer service BPO sector is growing in Cape Town and has risen substantially in the last couple of years. The industry is expected to witness significant growth in the next few years. In addition, South Africa holds an advantage in Customer Service BPO services. Its ability to help businesses cut costs overall, coupled by a swift transition towards remote operations due the Covid-19 epidemic has earned SA’s Customer Service Centers an edge over the other hubs.

The finance & accounting segment is projected to grow at a rapid growth rate of 13.6 percent during the forecast period. Benefits of finance and accounting BPO services for lower cost of financial tasks is also driving their acceptance throughout a number of financial institutions in the country. South Africa is steadily advancing in the field of international services to the financial services sector. A variety of financial companies are becoming increasingly inclined to South Africa for establishing their African back-office shared service hubs to be one of their delivery infrastructures worldwide.

End-of-use Insights

The IT & telecommunication segment took the lead in the regional market, with a market share of more than 35% in 2019. The telecommunications and IT sector is among the major adopters of BPO services. In the IT sector, South Africa has performed an important function in the realm of service desk and technical helpdesk because of its remarkable abilities in speaking. Additionally, the country is comprised of a significant number of IT graduates with relevant technical expertise, which makes it easier to reduce the burden and the cost of training for businesses. South Africa continues to remain one of the leading locations to outsource IT services due to the rapidly expanding cluster of businesses. They provide IT-oriented solutions to various industries that include websites’ architecture and development and applications and platform development. The rising ICT expenditure across the country for regular maintenance of the existing IT and communication systems and replacement of old systems will likely drive market’s growth.

This BFSI segment is expected to experience the highest CAGR over the forecast time. The ease of access to a skilled workforcethat includes Chartered Financial Analysts (CFAs), Chartered Accountants (CAs) and actuaries has been the key driver behind success for the country in this industry. Global banks are selecting South Africa for the delivery of intricate work in banking areas, such as life insurance and fund accounting. The country offers a vast array of voice communications within the insurance sector and banking, including commission handling process of processing claims and policy administration.

Key Companies & Research on Share of Market

The market is highly competitive since the majority of large companies are focusing in enhancing their presence on the market by adopting various business strategies like mergers and acquisitions, partnerships and product development. These strategies assist companies in expanding their geographic footprint and increase their offerings to world and the national. For example, in August 2020 WNS (Holdings) Ltd introduced EXPIRIUS an innovative consumer experience (CX) solution that integrates human-assisted design with AI-driven conversations insights to help improve customer experiences. The main companies operating inside the South Africa business process outsourcing market include:

  • Accenture Plc

  • Amdocs

  • Capgemini

  • HCL Technologies Ltd.

  • IBM Corp.

  • Infosys Ltd. (Infosys BPM)

  • NCR Corp.

  • Sodexo

  • TTEC Holdings, Inc.

  • Wipro Ltd.

  • Mango5 BPO

  • Indox (PTY) Ltd.

  • Outworx Contact Centre

  • SA Commercial

  • Talksure Group

  • Boomerang Marketing

  • iContactbpo

  • 121 BPO Services

  • Altron

  • The IT Guys

  • Merchants SA (Pty) Ltd.

  • CCI South Africa

  • Capita plc

  • Digicall Group

  • DSG Group

  • Startek

  • WNS (Holdings) Ltd.

  • Webhelp

  • O’Keeffe & Swartz

  • Ignition Group

  • Rewardsco

  • Teleperformance SE

  • Encore Capital Group

  • Pra Group, Inc.

  • Paschoalotto Logo

  • Pioneer Credit

  • Credit Corp Group

  • Collection House Ltd.

Segments covered in the Report

This report forecasts growth in revenue at the country levels and provides an analysis on the most recent industry trends from 2016 through 2027 in the various sub-segments. For this report, Grand View Research has divided in the South Africa business process outsourcing market report based on final-use and service:

  • Service Outlook (Revenue USD Million between 2016 and 2027)

    • Finance & Accounting

    • Human Resources

    • Knowledge Process Outsourcing (KPO)

    • Supply Chain & Procurement

    • Customer Service

    • Other

  • The end-user Outlook (Revenue, USD Million (2016 – 2027)

    • Banking, Financial Services, and Insurance (BFSI)

    • Healthcare

    • Manufacturing

    • IT & Telecommunication

    • Retail

    • Other

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