South Africans are coming home, and part of the reason can be found in the growing popularity of outsourcing in South Africa.
For many years, South Africa has experienced an emigration problem. In a globalised economy, the country’s brightest and best can usually find better employment prospects overseas. Today, though, there are signs that they’re coming home. According to recent data, South Africans in Europe, Australia and the US are returning to South Africa. It’s a vote of confidence in the economy. The fact that it coincides with the growth of the outsourcing market should be seen as no coincidence.
Outsourcing to South Africa
Over the last decade, South Africa has been one of the fastest-growing destinations for business process outsourcing. The market has seen double-digit growth year on year, with more expected to come over the next decade. Twice, the country has been named global outsourcing location of the year as it seeks to establish itself as a rival to the traditional BPO powerhouses of India and the Philippines.
South Africa’s outsourcing boom is a sign that businesses want something different from their outsourcing services. Many have suffered reputational damage from outsourcing strategies perceived as sacrificing quality for cost. Language difficulties, cyber risks, and poor customer service persuaded many of the UK’s largest businesses to reverse outsourcing strategies and bring services back in-house. As cheap as labour was overseas, the costs of a lower customer experience outweighed the savings.
South Africa’s success comes because it makes one simple but alluring offer: it can help businesses save money without disrupting their relationship with its customers.
The country is uniquely positioned to do this. Its location at the tip of Africa means it’s well placed for the working days of Europe and the Middle East. It also serves as a gateway to the lucrative African markets and offers a host of attractive expansion opportunities. English is widely spoken, and unlike in alternative locations, the accent can generally be easily understood by customers. Technological infrastructure is good, with high-speed internet being the norm across all major cities. Talent is widely available. South Africa’s education system is producing skilled professionals across all disciplines, making them an attractive proposition for companies of all sizes.
The cost of labour might be a little higher than in India or the Philippines, but it’s still much lower than in Western economies. When you take into account the country’s reputation for quality and government support, the overall costs of outsourcing to South Africa can match up against any other location.
Jobs in South Africa
The result of this growth has been to bring a flood of investment and jobs into the South
African economy. For a nation which has traditionally struggled to overcome high unemployment, especially among the young, this could be a game-changer. International companies are bringing investment into the country with the top-notch jobs that come with it. Graduates who might previously have felt compelled to move overseas to find new opportunities can now find them right at home.
Furthermore, these new jobs have not gone unnoticed by South Africa’s expat community, many of whom have been encouraged to return home. Their reasons for returning vary. Missing the weather or the culture are common, but a clear driving force is a growing belief that South Africa’s economy now offers a host of opportunities.
Changing outsourcing in South Africa
The types of jobs being outsourced to South Africa are varied. No longer is this the preserve of low-skilled basic jobs such as call centre experts. Today it’s being applied at all levels from technical support, to financial services, legal advice, marketing and software development.
Fast digital communications, video conferencing, instant messaging and file sharing mean international teams can collaborate quickly and easily. An outsourced team can now work as an extension rather than a replacement of your domestic operations. For example, if you need software development services, your executive team can collaborate with a remotely outsourced software team in real time. You can collaborate on the same files, speak face-to-face, offer feedback and get amendments completed on the same day. Outsourcing is no longer a separate entity. It’s something that can be deeply embedded within your team.
This approach also changes the goal of outsourcing. Although cost savings remain a primary motivation among business leaders, it also offers a chance to broaden your talent pool. No longer are you restricted to working with the talent in your local area. Now you can reach out and work with anyone, anywhere in the world, at any time.
The lower cost of labour brings expertise that might have been unavailable or unaffordable within the range of smaller businesses. It allows them to embrace the advantages of the latest software by employing skilled software professionals to close the digital gap with larger companies. It levels the playing field and helps companies to safeguard their existing business while also investigating opportunities for further growth and expansion.
At the same time, South Africa is also offering an attractive proposition for those traditional BPO functions. Services such as call centre staff, which previously were outsourced with a view to minimising costs, now offer cost optimisation. This stems from a more nuanced appreciation of the ROI involved with outsourcing. Businesses understand that the lowest bottom-line options also come with costs through lower customer retention and lost business opportunities. South Africa, with its commitment to quality and the ability to offer staff with excellent English skills, means you can harness all the benefits of a domestic high-quality customer service offering while still enjoying lower labour costs. At a time when every penny counts for businesses, that can be critically important.
The world of outsourcing, then, is changing, and South Africa is leading the charge. With outsourcing bringing in foreign investment, there are signs that it’s sparking growth within the country. This is bringing emigrants back to South Africa and encouraging its top talent to stay the course. In turn, this further enhances South Africa’s proposition as an outsourcing hub and sees more companies looking its way. The future for everyone involved is very bright.