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

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This South Africa business process outsourcing market size was valued at USD 1.4 billion during the year 2019 and is projected to increase by a compound annual growth of (CAGR) that is 13.2 percent between 2020 and 2027. The market’s growth is led by advances in technology, continual innovation and an increase in the competition. This trend is expected to continue through the forecast period. The need to cut down on operating expenses, improve processes, focus on core competencies, and attract skilled talent is expected to propel growth in the coming years. South Africa has been home to many call center operations over the past few years and has since gained international acknowledgement as a sought-after and trustworthy offshore outsourcing destination.

It is also ranked as one of the top locations in the world for Global Business Services – or outsourcing business processes. With a sufficient expertise, an extensive capacity of employees, lower costs and an easy-to-understand neutral English accents are a few of the key factors making companies consider South Africa among their preferred outsourcing destinations. With a focus on Analytics and Artificial Intelligence (AI)-driven solutions, South Africa has a larger quantity of actuarial experts as compared to India and offers support in a variety of languages, including French and Spanish. The use in the use of AI and robotics in conjunction with a strategy to manage human resources also help the incumbents of this South Africa BPO industry in being competitive with their counterparts in Europe and the Middle East & Africa.

This will, in turn, be expected to propel market’s growth in the near future. In addition, Business Process Enabling South Africa, known as the African Business Process Outsourcing industry body has played an important role in encouraging the sector’s expansion through assisting with skill development and sharing best practices and providing its members with connections to business networking networks & associations that facilitate and guide this sector’s shift to the digital age. Additionally to that, there is a need for the South African government has introduced various tax incentives and programs for the creation of infrastructure and supporting skills. One of the most notable initiatives includes known as the Monyetla Work Readiness Programme.

The major goal of this program is to increase the amount of work-ready entry-level employees. With programs like the Monyetla Work Readiness Programme, BPO employers lead a collaboration approach to hire and train entry-level workers. Such initiatives are creating youth job opportunities, and thus contribute to the region’s earnings by offshoring services. In the past, the afribpo business in SA is constantly growing which has created new opportunities for workers and, consequently, playing a pivotal part in the region’s growth. Outsourcing service providers think it is because South Africa enjoys better opportunities in comparison to other countries in Africa for providing the business services that outsourcing companies require. Cape Town has particularly emerged as an ideal BPO location of choice.

Service Insights

The customer support segment was dominant in the market with a share of over 31% in 2019 and will expand further at the fastest CAGR from 220-2027. This increase is due to the growing number of service centers that require on-line and offline technical support. Customer service BPOs focus on managing inquiries from customers through phone, chat, email, social media platforms, and various other channels. This customer-service BPO industry is thriving in Cape Town and has risen dramatically in recent years and is expected to grow significantly in the coming years. In addition, South Africa holds an advantage in client service BPO services. Its ability to help businesses reduce costs, along by a swift transition towards remote operations due to the Covid-19 pandemic earned its customer support centers in the country an advantage over the other hubs.

The segment of finance and accounting is anticipated to grow at a rate of 13.6 percent in the forecast. The benefits of finance and accounting BPO services in the price reduction associated with finance functions is also driving their acceptance across a variety of financial institutions within the country. South Africa is steadily advancing in international services to the industry of financial services. A number of financial institutions are slowly embracing South Africa for establishing their African back-office shared service hubs as one of their delivery infrastructures worldwide.

End-use Information

The segment for IT and telecommuting dominated the regional market with a share of greater than 35% in 2019. The telecommunications and IT sector is among the largest users of BPO services. In the IT area, South Africa has performed an important function in the field of the technical helpdesk and service desk because of its outstanding ability to communicate. Moreover, the country consists with a high percentage of IT graduates who have the required technical capabilities, which makes it easier to 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 services due to the growing number of businesses. They offer IT-based solutions to several industry verticals that include the design and development of websites, and applications and platform development. The increasing ICT spending in the country for the regular maintenance of the existing IT and communication systems and replacement of obsolete systems are likely to drive the market’s growth.

It is expected that the BFSI segment is anticipated to show the highest growth during the forecast period. The ease of access to a trained workforce, that includes Chartered Financial Analysts (CFAs), Chartered Accountants (CAs) and actuaries, have been the main driver of success for the country in this area. In addition, global banks are selecting South Africa for the delivery of intricate work in banking areas, such as life process for fund accounting and insurance. South Africa is a major provider of voice processing in the area of insurance such as commission handling, claim processing, and policy administration.

Key Companies & Information on Market Share

The marketplace is extremely in competition, and many major companies are working on increasing their market presence by adopting various business strategies that include partnerships, mergers and acquisitions and product development. These strategies enable companies to expand their geographic reach and broaden their offerings on national and international markets. For example, in August of 2020, WNS (Holdings) Ltd was the first to launch EXPIRIUS an innovative customers’ experience (CX) solution that integrates humans-assisted design and AI-driven insights to help improve customer experiences. Some of the major players 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 included in the Report

This report estimates revenue growth at the national scale and gives an analysis of the latest trends in the market from 2016 to 2027 in each of the sub-segments. For the purpose of this report, Grand View Research has subdivided it into the South Africa business process outsourcing market report on the basis of service and end-use:

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

    • Finance & Accounting

    • Human Resources

    • Knowledge Process Outsourcing (KPO)

    • Procurement and Supply Chain

    • Customer Services

    • Others

  • “End-user” Outlook (Revenue USD Million (2016 – 2027)

    • Banking, Financial Services, and Insurance (BFSI)

    • Healthcare

    • Manufacturing

    • IT & Telecommunication

    • Retail

    • Other

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