Outsourcing Guides
Forget India or the Philippines, if you want to maximise value from your outsourcing, South Africa is the place to be.
Business process outsourcing remains a key tool for businesses looking to reduce their costs and optimise their workforces, but it remains a controversial solution. Customers have reacted angrily in the past to companies which have shifted operations overseas, forcing many of them to reverse course. The conventional BPO powerhouses of India and the Philippines have attracted criticism for poor communication, long wait times, and data security risks. If you want to avoid these risks, now might be the time to consider outsourcing to South Africa. Here are just a few reasons why.
A talented workforce
South Africa has invested heavily in its education system. The number of people graduating from tertiary education is at an all–time high, leading to a surge of talented, highly qualified individuals entering the workforce. With the cost of living being significantly lower than in the UK or other Western countries, these professionals are generally available at a substantial discount.
As a hiring company, outsourcing to South Africa gives you a chance to broaden your talent pool and access skilled individuals who might not be available or affordable in your domestic market. In sectors such as software development, for example, skilled professionals can be in short supply and come at a premium. Recruiting in South Africa gives you a chance to onboard that talent at a cost that is more affordable for you.
Low costs
The cost of labour varies from region to region and depending on the specific job role. Cities such as Durban have the lowest cost of living, closely followed by Cape Town. Outsourcing to these cities can be more affordable if you can find people with the skills you need.
In general, wages across the country are about half the level in the UK, making it an ideal option to reduce costs. While labour costs might be cheaper in other locations, such as India, the combination of high levels of skills backed by cutting-edge technology means companies can expect a higher level of quality and reliability.
Government support
The government has been quick to embrace the opportunities of business process outsourcing. Over the last ten years, it has created hundreds of thousands of jobs and generated billions in revenue. As the government strives to provide jobs for its ambitious workforce, the BPO sector will be front and centre of its economic policy for the next decade. Between now and 2030, the BPO sector is predicted to grow at more than 10% year on year.
To encourage further growth, the government has purposefully created an extremely favourable regulatory environment with a host of incentives and grants designed to facilitate investment. This government support can significantly improve the return on investment for outsourcing to South Africa.
A good language match
A common complaint with traditional outsourcing services has been poor communication. Although countries such as India offer a highly educated workforce with fluency in English, the accent can be difficult for people to understand. Misunderstandings are common, leading to frustration and complaints.
In South Africa, English is one of the main languages and is spoken fluently across the country. Crucially, though, the South African accent is clear, neutral and easy for customers in the UK to understand. South Africa’s culture is also a good match with plenty of common references that help to build long–lasting and profitable business relationships.
Technological infrastructure
South Africa has invested heavily in its IT infrastructure. BPO companies can offer state-of-the-art support with the latest AI, automation, data management and machine learning capabilities. Superfast internet is the norm across the country, especially in the main cities, allowing for fast, seamless and highly convenient communication.
Technology is breaking down barriers, reducing the importance of location and opening up collaboration across multiple countries. In doing so, it’s also opening up outsourcing across a much wider range of disciplines and job functions. Outsourced operations no longer need to be separated from your domestic business. Now it can supplement and work with your existing team.
Time zone matches
Last but not least, South Africa benefits from a strategic location. It is generally only one or two hours ahead of the UK, which aligns neatly with the working day in Europe and the Middle East. Even for those countries which have a much longer time difference, such as the US, there are opportunities for out–of–hours support operations to provide 24/7 coverage. As offices shut down, home businesses can switch to South African call centres that can maintain continuity throughout the night.
Matching time zones facilitate real-time collaboration and enable hiring companies to commission and complete projects within the same working day. Using the cloud, multiple teams can collaborate on the same documents simultaneously, providing the same level of close–knit collaboration you would expect when working with professionals at home.
When time zones are matched, video conferencing enables you to have meetings face-to-face rather than waiting for a delay in acting on feedback. Today, it’s common for businesses to conduct meetings with people in many different locations at the same time. The age of remote work is here, with multi-national teams working together.
Is outsourcing to South Africa right for you?
The decision of whether to embrace outsourcing will be unique for each business. Everything depends on what you want out of the relationship. Is it just about reducing costs, or do you want a solution which can put you in touch with a wider range of talent, broaden your business horizons and unlock opportunities? If so, outsourcing to South Africa could be the opportunity you’ve been waiting for.
There are a number of different ways you can use BPO services. A traditional outsourcing company provides access to employees and technical support, but little control over the type of employees you hire. An employer of record allows you to employ professionals across all sorts of different functions without having to set up a legal entity and a professional employers organisation provides the services of an HR department, taking on the administrative load of your team and freeing to up to concentrate on your business goals. Both allow you to scale up your teams quickly and to tailor them to your evolving business needs.
As we move into an increasingly competitive future, business process outsourcing is evolving to match. It offers a way to optimise your recruitment costs while giving you access to a range of skilled and talented individuals from around the world who can drive your business operations forward.
