South Africa represents an increasingly attractive outsourcing destination, but what are the best services to outsource to South Africa.
A cost-effective labour force, a growing economy, a favourable business climate and a diverse talent pool have seen South Africa become increasingly popular in the global outsourcing market. Although its share of the market was just 1% in 2014, it is expected to hit 4% by 2030. In a world which was traditionally dominated by low-cost destinations such as India or Thailand, South Africa is showing companies that they can find a balance between value for money and high quality.
To illustrate this diversity, here are five services to outsource to South Africa.
1. Customer services
One of the first services to be outsourced was customer services. However, customers quickly baulked at having to deal with people in far-flung countries who were struggling to speak their second language. Call abandonments rose with customers expressing growing frustrations about the difficulty of accessing good quality customer support.
Despite the cost advantages, many companies began relocating their customer service lines back to their domestic companies with some even making a marketing campaign about it. In the UK, telecoms company PlusNet, for example, heavily promoted the fact that their customer service experts were not only based at home in the UK but close to the company’s base in the North of England.
Language barriers cause frustration and erode trust in a company’s services. While it may be cost-effective, the impact on customer relations and trust can be corrosive to business.
In South Africa, companies have a good middle ground. It might not offer rock-bottom labour costs, but it is still relatively cost-effective and a favourable exchange rate increases its value for money. It also has a diverse and highly skilled workforce with high proficiency in English. Cultural similarities will also help cross the divide and enable good cross-border communication between all sides.
2. Content writing
Companies have been outsourcing content writing for years with mixed results. Countries such as India provided the promise of low-cost content together with high volumes and quality. However, the performance of the Indian content houses varied considerably.
There was no way to guarantee proficiency with English and outsourcing companies would often struggle to get professional quality content. Cultural differences and a
lack of market knowledge would also make it difficult for content writers to relate.
As a result, companies would often find themselves having to invest heavily in rewriting lengthy and costly rewrites.
South Africa offers an altogether different proposition. English is widely spoken in the country. Labour costs are also well below average which means professional content writers will be willing to work for a lower rate than their counterparts in Western countries.
Excellent digital communications and a good time zone match with European countries also made it useful for cross-border communications.
South Africa’s cultural similarities to Western markets also make it easier for content writers to make their work relatable to consumers. The result is affordable, but high-quality content that helps businesses communicate their messages more effectively to Western audiences.
Content also needn’t be related to basic content offerings such as the SEO content that was traditionally sent out to outsourcing destinations. South Africa’s highly educated workforce is capable of producing well research, thorough, pieces that can inform, inspire and entertain. In many cases, it’s the fastest and cheapest way to get good quality content up on your website.
3. Financial services
Recent years have seen a more general rise in financial outsourcing. Increasingly sophisticated digital platforms and the need for companies of all sizes to get a handle on their company finances make financial outsourcing more viable than ever.
Small and medium-sized businesses especially lack a clear view of their finances. As companies grow, their financial requirements can grow beyond the capabilities of the accounting department. Mistakes can creep in and a lack of detailed skilled oversight can lead to inaccurate or out-of-date reporting.
Outsourcing the financial function can provide access to highly skilled, specialist experts with access to the latest technologies. They can turn the accountancy function into a core business operation gathering real-time granular insights into business performance that can drive profitability and productivity. With access to better information, business leaders can make more effective decisions which will encourage better growth. Freed from the constraints of financial admin they can also focus on better, strategic, decisions.
The only downside is that expertise comes at a cost. Financial professionals demand high wages which can put this expertise out of reach for some businesses.
Outsourcing to South Africa offers a cheaper, but no less high-quality option. South
Africa has a highly educated population which gives you access to skilled financial professionals and the latest financial technologies.
Digital technology allows seamless collaboration with outsourced professionals giving companies access to high-quality personalised services that can be virtually as good as having in-house financial professionals.
4. IT, cyber security and software development
South Africa boasts one of the fastest-growing IT sectors in Africa. The government has worked hard to turn itself into a growing IT hub within the continent. However, the rise of digital communications means South Africa’s IT companies are now stretching out their reach into other countries around the world.
Europe is a particularly promising destination. South Africa’s time zone matches well with most European countries which means IT support staff can always be on hand to provide dedicated real-time support.
The population is highly skilled and trained in the latest technologies and digital techniques. They can offer a wide range of services from basic IT support to software development, cyber security and many others.
Digital communications have become seamless offering the prospect of instant collaboration between teams around the world. As such, South Africa is increasingly capable of delivering more complex services such as software development and digital transformation that require high levels of collaboration and expertise.
The lower costs put these vital digital services within reach of small and medium companies which might previously have been unable to access people with the sought-after digital skills. This can reduce the digital gap which often leaves small businesses struggling to compete.
5. Digital Marketing
Digital marketing is a crucial tool for businesses of all sizes but one that many companies struggle to get right. Services such as SEO, social media and content marketing require a strategic approach led by expertise and in-depth market knowledge. Digital marketing firms can often be expensive making it more difficult for small companies to draw up effective marketing strategies that can truly expand their reach. South Africa has a diverse, multicultural and highly tech-savvy workforce skilled in the latest digital marketing strategies.
Furthermore, South Africa’s position as the gateway to Africa can also potentially open up a host of exciting new markets. Africa as a whole has experienced dramatic growth in the last few years. Having skilled digital marketing teams with knowledge of those markets can also help small businesses develop tailored marketing plans to access those markets.
What are the best services to outsource to South Africa?
In this article, we’ve merely scratched the surface of the opportunities on offer in South Africa. However, the country’s diverse and highly educated workforce offers expertise across all sectors. From customer service to telecommunications, IT, marketing and much more the range of high-quality solutions available in South Africa is growing by the year. In an increasingly global market, South African outsourcing can be a valuable partner for growth.
