Outsourcing Guides
A growing economy, good language skills and a reputation for quality are just some reasons why you should outsource to South Africa.
Today’s business world can be challenging. According to recent data from QuickBooks, almost half of UK SMEs believe cash flow problems will become increasingly severe over the coming year. 57% of businesses believe costs will rise over the next 12 months. With an increasingly uncertain economy, businesses of all sizes, but especially SMEs, will be looking to streamline operating costs. However, cutting costs always comes at the risk of reducing quality and with competition as high as it’s ever been, that’s a sacrifice that not all businesses can afford.
Looking to outsource
In a global free market, outsourcing has long been a way for businesses to reduce the costs of certain functions. Businesses of all sizes have shipped certain functions overseas in an attempt to take advantage of lower labour costs. Traditionally, though, outsourcing always brings a backlash from customers who complain of a long wait for a call and poor service when they get through. Speaking to foreign call centre experts who speak in their second language reduces the chances of people’s requests being answered the first time, and when customers don’t get what they want, they tend to look elsewhere.
Outsourcing, then, has long been seen as a trade-off. Can businesses accept the lower quality of service in return for cost savings elsewhere? Some, though, have been asking themselves the question – can I save money while still maintaining high levels of quality?
It may seem like trying to have your cake and eat it. However, that’s the exact proposition on offer from the rising star of the outsourcing market, South Africa.
Outsourcing in South Africa
South Africa has been rapidly emerging in the business process outsourcing market over the past few years. It has been named Global Offshoring destination of the year twice over the past decade, with cities such as Cape Town, Dubai and Johannesburg developing world-class reputations in sectors such as customer service, IT and finance.
Corporations such as BT, Amazon, British Gas and Deloitte are just some of the companies that have moved some operations, ranging from call centre operations to financial management, regulatory compliance and legal services.
Smaller businesses have been following suit, seeing South Africa as a convenient, effective and affordable option for outsourcing key operations.
Why outsource to South Africa
South Africa’s success stems from a combination of a good language and culture match, state-of-the-art technological infrastructure and enthusiastic government support in the form of tax credits and grants. Businesses that employ significant numbers of South Africans can benefit from a range of incentives depending on the number of jobs created and the value of the roles. The BPO and Offshoring Investment Grant offers cash grants for companies serving offshore clients. It includes training support grants encouraging business development in the country.
Different regions also have their incentive schemes in place, such as the Eastern Cape GBS Investment Scheme or the Western Cape Offshoring Support programme. Government incentives may also be available for businesses setting up in areas of high unemployment.
Major cities across South Africa benefit from state-of-the-art technological infrastructure, with ultra-fast internet being the norm in most places. BPO providers offer the latest facilities, equipment and software to facilitate seamless collaboration with outsourced staff in the country.
Most of all, though, it’s the language match that initially drew companies looking for better outcomes in sectors such as customer service. English is fluently spoken across South Africa with a clear and familiar accent. Communications problems that had plagued BPO operations in the Philippines or India are less of a barrier, enabling operatives to deliver first-class levels of customer service.
South Africa’s location also makes for a good time zone match with companies in Europe and the Middle East. With only a couple of hours difference, customer service staff can be on hand during work hours. In more distant countries where there is a bigger difference, though, South Africa offers opportunities for out-of-hours coverage, giving people access to 24/7 customer support.
What jobs can be outsourced to South Africa?
The most common job roles outsourced to South Africa are customer service operations. However, that only touches the tip of what can be offered.
South Africa’s workforce is multi-talented and ambitious. University education is improving, and the number of graduates entering the workforce is higher than ever. Although South Africa’s economy is growing, it’s still struggling to offer sufficient jobs to keep these graduates happy. Unemployment remains high, which is why the outsourcing sector can play such an important role in keeping that talent in the economy.
Outsourcing opportunities, then, can be found at all levels, including quite senior positions not commonly associated with outsourcing. Here are just a few:
Software development: Digital transformation has put software developers in high demand. Finding skilled individuals in your local area can be difficult, and hiring software development companies can be prohibitively expensive. IT is one area in which South Africa is excelling, with large numbers of highly talented software professionals available. These professionals can collaborate quickly and easily with your domestic teams in delivering highly complex and demanding software projects. If you’re struggling to find people with the skills you need, outsourcing to South Africa could be the answer.
- Financial services: South Africa is one of the prime financial hubs in Africa. Cities such as Cape Town and Johannesburg have built up reputations for offering world-class financial services. Outsourcing opportunities can be found at all levels, from basic accounting and bookkeeping to more advanced financial services.
- IT support: A rich reserve of talented IT professionals means many companies are outsourcing IT support operations directly to South Africa. IT experts can work with domestic and business clients, delivering professional real-time support with all IT-related services.
- Legal services: Businesses in the UK are outsourcing legal operations to South Africa. Professionals can provide expert advice on aspects of UK law and also South African law, which can be essential for any business looking to expand in South Africa.
- Marketing: English fluency, together with extensive professional expertise in the marketing sector, helps South Africa offer marketing services that match the quality expected at home. Outsourcing marketing operations to South Africa can also help any business attempting
Today, there are no boundaries to the types of business roles that can be outsourced to South Africa. If you’re struggling to find skills at home, the chances are you can find them in South Africa.
Outsourcing to South Africa is a very different proposition from outsourcing in India or elsewhere. It offers a combination of low costs and high quality. With government support being generous, the business case for outsourcing to South Africa is hard to deny, which is why for many businesses, including yours, the time may well be right to look to South Africa.
