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South Africa Business Process Outsourcing Market Size, Share and Trends Analysis Report By the Service (Customer Services, Finance & Accounting) And By End-Use (BFSI, IT & Telecommunications) and Segment Forecastsfrom 2020 to 2027

In the South Africa business process outsourcing market size was valued at USD 1.4 billion back in the year 2019 and is anticipated to grow at a compound annual growth amount (CAGR) in the range of 13.2% from 2020 to 2027. The growth in the market is driven by technological advances, ongoing innovation, and increasing competition, which will likely to continue throughout the next few years. The need for control of cost of operations, improve processes, concentrate on core competencies and attract skilled talent is predicted to drive this market over the next years. South Africa has been home to many call center operations over the last few years and has since gained international recognition as a popular and trustworthy offshore outsourcing destination.

It is also considered to be one of the top areas when it comes to Global Business Services – or outsourcing business processes. An adequate expertise, a substantial talent pool, lower expenses and an easy-to comprehend neutral English accents are just a few of many factors driving companies to consider South Africa among their preferred outsourcing destinations. In the context of analysis and Artificial Intelligence (AI)-driven solutions, South Africa has a larger amount of actuarial resources compare to India and provides support across a range of languages, which includes French as well as Spanish. The use in the use of AI and robotics in combination as a strategy for human resource management could also help the incumbents of this South Africa BPO industry in competition with competitors in Europe and the Middle East & Africa.

This will, in turn, be likely to increase the market growth in the foreseeable future. Furthermore, Business Process Enabling South Africa, the Best African BPO company industry body, has played a significant contribution to promoting the industry’s expansion by assisting in the development of skills as well as sharing best practices and providing its members with connectivity to different business organizations and associations that influence the sector’s transition into the new economy of digital. Additionally, there is a need for the South African government has introduced various tax incentive and schemes to create infrastructure as well as support for skilled workers. One of the most well-known initiatives involves The Monyetla Work Readiness Programme.

The main objective of this program is increasing employment opportunities for entry-level employees. As part of through the Monyetla Work Readiness Program, BPO employers lead a team approach to recruit, and train entry-level workers. This type of initiative is creating young work opportunities and thus contributing to the region’s export revenues from offshoring. There is a BPO industry in SA is growing at a rapid pace providing new employment opportunities, subsequently playing a decisive role in the region’s growth. Outsourcing service providers believe that South Africa enjoys better opportunities relative to other countries in Africa to deliver business outsourcing services. Cape Town has particularly emerged as an ideal BPO location preferred by BPO providers.

Services Insights

The customer service segment dominated the market with a market share that was more than 31% as of 2019 and will continue to grow by the fastest rate of growth from 220-2027. The reason for this is the increasing presence of service centers, which requires the availability of technical support online and offline. Customer service BPOs are focused on handling customer inquiries made via phone, chat, email social media platforms and many other channels. This customer-service BPO industry is flourishing within Cape Town and has risen significantly over the last few years, and is predicted to be a major growth area in the next few years. Furthermore, South Africa holds an advantage in client service BPO services. The capacity to assist businesses lower their costs with the rapid shift to remote operations due to the covid-19 pandemic, has earned South Africa’s customer service centers an edge over rival hubs.

The finance and accounting sector is projected to grow by a significant rate of 13.6 percent over the forecasted period. The advantage of finance and accounting BPO services in price reduction associated with finance functions is driving their use across various financial institutions across the country. South Africa is steadily advancing in the field of international services to the financial service industry. A variety of financial companies are shifting to South Africa for establishing their African back-office shared services hubs to be components of their worldwide delivery network.

End-of-use Insights

The IT and Telecommunication segment has dominated the market in the region, with a share of greater than 35% in 2019. The IT and telecoms sector is among the largest adopters of BPO services. In the IT space, South Africa has performed an essential role in the realm of service desk and technical helpdesk due to its extraordinary abilities in speaking. Furthermore, the country is made up of a significant number of IT graduates who have the necessary technical knowledge, which can reduce the burden as well as the expense of training on the part of businesses. South Africa continues to remain one of the top destinations for outsourcing IT-related services due to the rapidly expanding cluster of companies. They offer IT-based solutions for various verticals of industry in the form of websites’ architecture and development and platform and application development. The growing ICT spending in the country for the regular maintenance of existing systems for communication and information technology and replacement of obsolete systems will drive industry’s growth.

This BFSI segment is expected to grow at the highest rate during the forecast time. The availability of a highly skilled workforce, which includes Chartered Financial Analysts (CFAs), Chartered Accountants (CAs) and actuaries, has been the key driver behind success for the country in this area. Furthermore, international banks are turning to South Africa for the delivery of intricate work in banking fields, including life assurance and fund accounting. South Africa is a major provider of voice operations in the insurance industry, including commission handling, the processing of claims, and also policy administration.

Key Companies & market share insights

The market is highly competitive as most of the major corporations are focused on expanding their market reach by adopting various business strategies including partnerships, mergers and acquisitions, and product development. These strategies assist companies in expanding their business geographically and enhance their offerings in international and national markets. For instance, in the month of August in 2020, WNS (Holdings) Ltd was the first to launch EXPIRIUS A unique customer experience (CX) solution that integrates human-assisted designs with AI-driven conversational data to improve customer experience. Some of the leading players operating within the South Africa business process outsourcing market are:

  • 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 included in the Report

This report estimates revenue growth at the national levels and offers an analysis of the most recent trends in the industry from 2016 to 2027 across each of the sub-segments. In order to conduct this report, Grand View Research has broken down its South Africa business process outsourcing market report based on services and their end-uses:

  • Service Outlook (Revenue USD Million 2016, 2016 – 2027)

    • Finance & Accounting

    • Human Resources

    • Knowledge Process Outsourcing (KPO)

    • Supply Chain & Procurement

    • Customer Services

    • Others

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

    • Banking, Financial Services, and Insurance (BFSI)

    • Healthcare

    • Manufacturing

    • IT & Telecommunication

    • Retail

    • Other

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