By Stephan Venter, Senior VP of Sales at Nutun

*Sponsored Blog Post*

A Rising Powerhouse in Global Outsourcing

South Africa’s BPO scene is growing exponentially and companies around the world are taking notice. Since 2017, our BPO industry has been increasing by 22% every year and experts predict that by 2027, it could be worth well over US $3.6 billion.

What also sets South Africa apart is our ability to service an international market. Over a quarter of all South African BPO workers service international clients, mainly from the UK (61%), the US and Canada (18%), and Australia and New Zealand (11%).

This proves that more and more international companies are looking to not only outsource non-core functions to South Africa, but that they’re doing it at scale – and here are some reasons why.

1. We’re incredibly skilled at customer service.

South Africa has a reputation for providing exceptional customer service that goes beyond just cost savings. Our strength lies in delivering high-value, high-quality transactions by relying on the cultural affinity our agents have with the markets they serve.

Part of this cultural affinity lies in the widespread use of English in government and business. We have over 16.5 million English speakers in the country, making South Africa the ideal choice for companies who need agents who are fluent in English and capable of handling diverse customer bases.

However, our customer service success is not just because our agents speak English, but also how they speak it. South Africa’s neutral accent is highly preferred for call center work, especially when serving customers in English-speaking countries such as Canada and the UK. Unlike some other accents that may be challenging for international customers to understand, the South African accent is considered more neutral and easier to understand.

2. We can save international companies up to 50% in labor costs.

South Africa offers great savings on labor costs compared to countries like Australia, the US, UK, and Canada.

South Africa has lower labor costs than developed countries such as the US, UK, Canada, and Australia. The average salary in South Africa is significantly lower than in these countries, allowing businesses to save up to 50% on their expenses by outsourcing to South Africa.

3. Our government offers substantial support and incentives for companies looking to outsource to our country.

As early as 2020, our BPO industry employed over 270,000 people. Today, we have extraordinary buy-in from governmental institutions that are aiming to create anywhere from 250,000 to 500,000 new BPO jobs by 2030. This support is partially driven by the belief that outsourcing boosts development by attracting foreign investment and creating employment opportunities.

Key entities governing the outsourcing industry include the Department of Trade, Industry, and Competition (DTIC), Business Process Enabling South Africa (BPESA), and CapeBPO (for the Western Cape). These organizations collaborate with the government to provide foreign companies with essential resources such as subsidized office spaces, computers, and internet access. Additionally, the government offers grants and tax incentives as rewards for job creation.

One notable initiative is the Global Business Services (GBS) Incentive introduced by the DTIC in 2019. This program offers operational expenditure grants based on the number of South Africans employed by a company through outsourcing, further incentivizing companies to invest in South Africa’s outsourcing sector.

4. Our universities produce about 160,000 graduates every year.

Of these graduates, around 60,000 have degrees in IT or engineering, which makes them well-equipped for technical roles that are valuable in high-quality interactions in a contact center environment.

On top of that, about 410,000 people join our workforce every year, and many outsourcing companies in South Africa tap into this talent pool by hiring students and recent graduates from local universities. This ensures a knowledgeable workforce while keeping labor costs low for outsourcing.

Additionally, the job market in South Africa presents challenges for many graduates, with a 32% unemployment rate in 2024, which means that there is a pool of educated individuals eager for new job opportunities. Combined, these factors make South Africa an attractive destination for companies seeking skilled workers.

5. We have a solid tech and infrastructure environment.

We’re considered one of Africa’s most tech-savvy nations, with top-notch IT platforms and telecom networks. We have a solid internet and telecommunications setup, thanks to upgrades like fiber internet through the SEACOM network. This means we get fast, reliable connectivity which is crucial for businesses needing dependable online operations and communication.

Big tech players like Google, Microsoft, and Amazon have made significant investments here, especially in data centers, expanding our digital solutions for both businesses and consumers.

We’re also a hotspot for innovation in industries like fintech, e-commerce, aerospace, biotech, data analytics, and digital marketing. For global IT outsourcing, South Africa excels in database management, network security, application support, and software development, and our expertise in technical support services keeps growing exponentially.

Choosing the Right Option for Quality BPO Services

It’s clear that South Africa’s BPO industry is quickly becoming a global standout. We’ve got the cost-effectiveness, a highly skilled workforce, language diversity, reliable infrastructure, and strong government backing. Our focus isn’t just on cutting costs but on consistently delivering top-tier service. With more international players recognizing the benefits of partnering with South Africa, our future in the global outsourcing arena looks promising, with continued growth and innovation on the horizon.

Your BPO Partner For Success

Nutun is a global BPO leader headquartered in South Africa. With decades of experience and a remarkably caring team of over 8000 agents, we lead business into the future by leveraging our innovative solutions across the full customer experience and credit lifecycle to our local and global client base.

Our ability to provide differentiated business solutions is enabled by a talented team powered by proprietary innovative technology in telephony, AI, data, omnichannel and analytics platforms, built over the last 25 years. We leverage our South African delivery network to enable impactful offshore solutions with cost savings, regional knowledge, neutral English language compatibility, world-class infrastructure as well as compliance with all major regulations in the territories we operate in. Our people and culture are our clients’ best assets. Together, our highly skilled team, using our advanced technology, across the customer cycle, ensures we deliver the business impact our clients need.

Our holistic business approach to driving economic impact in South Africa through our award-winning programs in education, job creation, and skills development delivers our purpose to positively impact our clients, our colleagues, our communities and our country.

For more information about why or how to outsource to South Africa, reach out to us at [email protected].

Stephan Venter, Senior VP of Sales at Nutun.