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

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It is estimated that the South Africa business process outsourcing market size was estimated at USD 1.4 billion in 2019 and is predicted to expand by a compound annual growth percentage (CAGR) which is 13.2 percent from 2020 until 2027. The market’s expansion is driven by advances in technology, continuous innovation, and a growing the competition. This trend is expected to continue over the coming years. The need to reduce operating expenses, improve processes, concentrate on core competencies and hire qualified professionals is anticipated to drive the market in the coming years. South Africa has been home to numerous call center operations for the last few years and has hence garnered global recognition as a top and reliable offshore outsourcing location.

It is also considered to be one of the top areas when it comes to Global Business Services – or offshoring business processes. A high level of expertise, a huge talent pool, lower expenses and an easy-to comprehend neutral English accents are just a few of the primary reasons making companies consider South Africa among their preferred outsourcing destinations. With the emphasis on analysis and Artificial Intelligence (AI)-driven solutions, South Africa has a larger number of actuarial resources in comparison to India and is able to provide support in multiple languages, such as French in addition to Spanish. The use for Artificial Intelligence (AI) and robotics as a method of complementing for human resources management could also help the incumbents of the South Africa BPO industry in being competitive with their counterparts in Europe and in the Middle East & Africa.

This will, in turn, be likely to increase the market’s growth rate in the near future. Additionally, Business Process Enabling South Africa, an industry body for the Top BPO companies in Africa industry body is playing a key role in encouraging the sector’s growth by supporting skill development and sharing best practices and offering its members the ability to connect with other businesses & associations that are driving and influencing the transition of the industry into the digital economy. In addition to this, The South African government has introduced several taxation incentives and schemes for the establishment of infrastructure and support for skills. One of the prominent initiatives is that of the Monyetla Work Readiness Programme.

The main objective of this program is to increase the pool of employable entry-level employees. As part of programs like the Monyetla Work Readiness Programme, BPO employers lead a consortia approach to recruit and train entry-level staff. These initiatives create youth jobs and contributing to the region’s export revenues through offshoring services. It is evident that the afribpo business in SA continues to grow and is bringing new opportunities for employment which in turn play a major part in the region’s growth. Outsourcing service providers believe the fact that South Africa enjoys better opportunities in comparison to other countries in Africa to offer service to business. Cape Town has particularly emerged as an ideal BPO location preferred by BPO providers.

Services Insights

The customer support segment was dominant in the market with a share greater than 31% in 2019 and is projected to grow at the highest CAGR of 220 to 2027. This is due to the growing establishment of service centers which require tech support that is available online as well as offline. Customer service BPOs focus on managing enquiries from customers made through phone, chat, email social media platforms as well as other channels. Customers can contact them via chat, email, social media platforms and other channels. BPO sector is growing at the moment in Cape Town and has risen considerably over the last few years. The industry is expected to increase significantly in the future. In addition, South Africa holds an advantage in the customer care BPO services. Its ability to help businesses cut costs overall, coupled by a swift transition towards remote working due to the Covid-19 pandemic has earned south africa’s centers for customer service an edge over the other hubs.

The accounting and finance segment will grow by a significant rate of 13.6% over the forecasted time. Benefits of finance and accounting BPO services in price reduction associated with finance tasks has also prompted their use across various financial institutions across the country. South Africa is steadily advancing in the field of international service delivery for the financial services industry. Many financial institutions are increasingly settling on South Africa for establishing their African back-office shared service hubs as parts of global networks of delivery.

End-use Information

The segment IT and Telecommunication took the lead in the regional market, with a share of greater than 35% in 2019. The sector of telecommunications and information technology is one of the leading users of BPO services. In the IT area, South Africa has performed an essential function in the realm of technical helpdesk and service desk because of its remarkable vocal skills. In addition, the nation is composed of many IT graduates with pertinent technical skills, which, in turn, reduces the responsibility and the cost of training on the part of companies. South Africa continues to remain one of the prominent locations for outsourcing IT services owing to the rapidly growing cluster of companies. These companies provide IT-focused solutions to several industry verticals such as website architecture and development, and the development of platforms and applications. The growing ICT spending in the country for regular maintenance of the existing communication and IT systems and replacement of obsolete systems are expected to fuel the development of the segment.

It is expected that the BFSI segment is predicted to show the highest growth during the forecast time. A readily available skilled workforce, including Chartered Financial Analysts (CFAs), Chartered Accountants (CAs) and actuaries has been the primary driver for success for South Africa in this field. Global banks are turning to South Africa for the delivery of complex banking areas, including life assurance and fund accounting. The country delivers vast volumes of voice communications in the field of insurance that includes commission handling, the processing of claims, and also policy administration.

Key Companies & Information on Market Share

The market is highly competitive because many of the large companies are focusing on expanding their market reach by adopting various business strategies such as partnership, mergers & acquisitions and product development. These strategies help organizations expand their operations geographically and improve their offerings to world and the national. For instance, in August 2020 WNS (Holdings) Ltd announced EXPIRIUS the first-ever customer experience (CX) solution that integrates human-driven designs and AI-driven conversational insights to improve the customer experience. Some of the major companies operating across South Africa’s 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 by the Report

This report forecasts revenue growth at the national scale and also provides an analysis of the latest trends in the market between 2016 and 2027 within each of the sub-segments. For the purpose of this study, Grand View Research has subdivided in the South Africa business process outsourcing market report on the basis of service and end-use

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

    • Finance & Accounting

    • Human Resources

    • Knowledge Process Outsourcing (KPO)

    • Supply Chain & Procurement

    • Customer Service

    • 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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