Outsourcing Guides
South Africa is fast emerging as one of the go–to destinations for business process outsourcing. Here are some of the sectors leading the way.
The business process outsourcing sector continues to grow both in volume and variety. One of the countries leading this growth is South Africa, where a combination of a deep talent pool, low labour costs, and world-class technological infrastructure is creating outsourcing opportunities at all levels of business operations. What was once the preserve of call centres of basic back office functions can now be used for almost any function. Here are just some of the sectors that are leading the way.
Customer service
The most common function outsourced in South Africa remains customer service. Current estimates suggest there are almost 250,000 call centre agents in South Africa serving clients across Europe, America and Asia. South Africa boasts a high level of English proficiency, together with a clear and easy-to-understand accent. While customers have reacted badly to outsourced call centre operations to places such as India, where accents can be hard to understand, reaction to customer service operations in South Africa generally tends to be more favourable.
A strong cultural match with many European and Western countries also helps. South Africa has many of the same sporting and cultural references, which facilitates an easy flow of conversation between agents and customers. As businesses become aware of the strategic importance of customer service, the ability to build lasting customer relationships puts South African customer service operations at a distinct advantage compared to other outsourcing destinations.
Financial Management
South Africa is building a growing reputation as a major hub for the finance industry. South Africa produces a healthy supply of finance graduates covering disciplines such as accounting, financial management and planning. English fluency enables strong business communication skills, making it an ideal option for clients in countries such as the UK, USA or Australia.
With the support of the latest financial management software, outsourcing financial operations enables you to manage costs while getting real-time data on your true financial position. With cutting-edge technology, they can provide access to real-time analytics, giving you unparalleled levels of insights that can inform your business operations.
The skill and professionalism of financial teams in South Africa enable you to put financial management front and centre of your strategic operations without breaking the bank. In a world in which top financial talent and the latest technology can be prohibitively expensive for many businesses, outsourcing financial operations is a way to reduce those costs and level the playing field.
Technology and IT
South Africa’s thriving tech sector offers a host of opportunities covering sectors such as IT support and software design. A high level of English proficiency coupled with technical expertise makes it an effective and affordable option for delivering ongoing technical support.
However, where South Africa is truly coming into its own is in more demanding sectors such as software development. Sourcing talented software professionals is expensive and difficult. For many small and medium-sized businesses, it’s simply not possible to compete with the lure of larger competitors. Engaging the services of professional software firms can be prohibitively expensive, which leaves them having to look outside the box.
South African software professionals can be sourced for approximately half the rates of their counterparts in the West. With jobs harder to come by, they are also more likely to be available, which makes this a good way for small companies to embrace the opportunities of digital transformation.
Marketing and web design
As the outsourcing market develops, hiring companies are looking to outsource highly skilled, high-level operations such as marketing. Professionals can help with everything from content creation to drawing up effective marketing strategies. Designers can help to build top-level websites at a fraction of the price. It’s a way to get more for your money and to push your budgets as far as they will go.
Businesses have previously attempted to save money by outsourcing marketing operations to third countries. However, poor levels of English proficiency make it a false economy, with domestic marketing professionals having to redo work.
In South Africa, high levels of English proficiency allow for concise, naturally flowing content that can generate sales and get your message across.
Outsourced marketing teams can also help to support market expansion into South Africa. As the third largest market on the continent, it’s an attractive target for Western companies and is often seen as the gateway to South Africa. Make it here, and a continent’s worth of opportunity lies in wait.
To be successful, you, of course, need a marketing team with a good knowledge of the local market, which is why it makes sense to build a marketing team to develop an effective strategy tailored to this precise market. Outsourcing these operations to South Africa gives you a chance to benefit from local expertise to give yourself the best possible chances of success.
Legal services
South Africa’s education system is churning out people with law degrees, in need of experience. They are well placed to offer services such as document reviews, legal advice, drafting and agency work on a more cost-effective basis than you would expect in your home market. Wages are generally around 30 to 40% the levels in the UK, providing a good way to access experienced and capable professionals at a fraction of the UK price. Legal fees can be reduced by half or even more for certain operations without sacrificing the quality of legal services.
The future of outsourcing in South Africa
South Africa’s government has worked hard to establish the country as a leading hub of the BPO sector worldwide. It has provided support, investment and infrastructure to attract foreign investment and create jobs for its ambitious workforce. The ability to provide opportunities across the entire business spectrum had been critical to making the country one of the rising stars of the BPO sector. With technology playing an increasingly important role, and government support expected to continue, that growth is likely to continue.
