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

The South Africa business process outsourcing market size was valued at USD 1.4 billion as of 2019 and is projected to grow at a compound annual growth of (CAGR) for 13.2 percent from 2020 until 2027. This market’s growth is characterized by advancements in technology, continuing innovation, as well as a rising competition, a trend which is expected to continue over the period of forecast. The need to cut down on operating costs, harmonize processes, focus on core competencies, and hire qualified professionals is anticipated to drive the market in the coming years. South Africa has been home to many call center operations for in the past couple of years and has gained global acknowledgement as a sought-after and reliable offshore outsourcing location.

It is also one of the top destination to source Global Business Services – or outsourcing business processes. With a sufficient expertise, an extensive talent pool, lower expenses and an easy-to comprehend neutral English accents are some of the most important factors making companies consider South Africa among their preferred outsourcing destinations. With a particular focus on analysis and Artificial Intelligence (AI)-driven solutions, South Africa has a larger quantity of actuarial experts as in comparison to India and can offer assistance in a variety of languages, including French as well as Spanish. The use of Artificial Intelligence (AI) and robotics as a complementary strategy for human resource management could aid incumbents of the South Africa BPO industry in being competitive with their counterparts in Europe and the Middle East & Africa.

This is expected to boost the industry’s growth in the near future. In addition, Business Process Enabling South Africa, that is the Best African BPO company industry body has played a key contribution to promoting the industry’s growth through supporting the development of skill as well as sharing best practices and offering its members the ability to connect with other businesses and associations that influence BPO’s move into the digital age. Additionally, there is a need for the South African government has introduced several taxation incentives and schemes for the establishment of infrastructure and skill-related support. One of the prominent initiatives involves monyetla, which is the Monyetla Work Readiness Program.

The focus of this program is to increase the pool of employable entry-level personnel. In programs like the Monyetla Work Readiness Programme, BPO employers lead a collaboration approach to hire and train entry-level workers. The initiatives have created youth job opportunities, and thus contribute to the region’s revenue from exports by offshoring services. The afribpo industry in SA is growing at a rapid pace providing new employment opportunities and playing a significant part in the region’s economic development. Outsourcing service providers think that South Africa enjoys better opportunities relative to other countries in Africa to offer BPO services to businesses. Cape Town has particularly emerged as an ideal BPO destination preferred by BPO providers.

Service Insights

The customer support segment was dominant in the market, with a share that was more than 31% as of the year 2019 and is expected to grow at the highest CAGR of 220 until 2027. This growth is due to the rapid growth of service centers which require the availability of technical support online and offline. Customer service BPOs are dedicated to managing inquiries from customers through telephones, chat, emails and social media platforms and other channels. This customer-service BPO industry is thriving across Cape Town and has risen dramatically in recent years, and is predicted to increase significantly in the next few years. Moreover, South Africa holds an advantage when it comes to services for customers BPO services. Its ability to help businesses lower the overall costs coupled with a speedy shift towards remote work operations as a result of the Covid-19 virus has given south africa’s centers for customer service an advantage over rival hubs.

The accounting and finance segment is projected to grow at a rapid rate of 13.6% during the forecast time. The advantage of finance and accounting BPO services in reduced cost for financial tasks can also drive their acceptance across several financial institutions in the country. South Africa is steadily advancing in the area of international service delivery for the financial services industry. Many financial institutions are moving towards South Africa for establishing their African back-office shared services hubs to be an element of the global distribution networks.

End-of-use Insights

The IT and telecommunications segment dominated the regional market with a market share of more than 35% in 2019. The IT and telecoms sector is among the biggest users of BPO services. In the IT sector, South Africa has performed an important role in the area of service desk and technical helpdesk because of its excellent capabilities in the field of voice. Moreover, the country consists with a high percentage of IT graduates with appropriate technical abilities, which can reduce the responsibility as well as the expense of training on the part of companies. South Africa continues to remain one of the top destinations for outsourcing IT solutions due to the rapidly growing cluster of businesses. These firms provide IT-focused solutions to various industries with respect to websites, development and architecture, and applications and platform development. The growing ICT expenditure in the nation for the regular maintenance of existing systems for communication and information technology and the replacement of outdated systems are expected to fuel the industry’s growth.

This BFSI segment is expected to record the highest CAGR during the forecast period. The ease of access to a highly skilled workforce, which includes Chartered Financial Analysts (CFAs), Chartered Accountants (CAs) and actuaries have been the crucial driver of success for South Africa in this field. Global banks are selecting South Africa for the delivery of intricate banking, for example, life financial and insurance procedures. The country is also able to provide a large number of voice services in the area of insurance that includes commission handling, the processing of claims, and also policy administration.

Key Companies and Chart Share Information

The marketplace is extremely competitive because many of the major companies are working on expanding their market reach by adopting various business strategies including mergers and acquisitions, partnerships and product development. These strategies help organizations expand their geographic footprint and increase their offerings across the national and international markets. For instance, in August 2020 WNS (Holdings) Ltd has launched EXPIRIUS which is a distinctive customers’ experience (CX) solution that integrates human-assisted design with AI-driven conversations information to enhance customer experiences. A few of the main companies operating across South Africa’s 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 that are covered in the Report

This report estimates revenue growth at the national levels as well as a review of the most recent trends in the industry between 2016 and 2027 within each of the sub-segments. For this research, Grand View Research has subdivided this South Africa business process outsourcing market report based on service and end-use

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

    • Finance & Accounting

    • Human Resources

    • Knowledge Process Outsourcing (KPO)

    • Supply Chain & Procurement

    • Customer Services

    • Others

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

    • Banking, Financial Services, and Insurance (BFSI)

    • Healthcare

    • Manufacturing

    • IT & Telecommunication

    • Retail

    • Others

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