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South Africa Business Process Outsourcing Market Size, Share and Trends Analysis Report by Services (Customer Services, Finance & Accounting) and By End-use (BFSI, IT & Telecommunications), And Segment Forecastsfor 2020 - 2027

There is a South Africa business process outsourcing market size was USD 1.4 billion at the end of 2019 and is anticipated to grow at a compound annual growth speed (CAGR) at 13.2% from 2020 to 2027. The growth in the market is driven by technological advances, continuous innovation, and a growing competitiveness, which is expected to persist over the next few years. The need for control of operating expenses, improve processes, focus on core competencies and employ qualified talent will drive the market over the coming years. South Africa has been home to numerous call center operations over the last few years and has since gained international recognition as a top and reliable offshore outsourcing location.

It is also considered to be one of the leading countries to source Global Business Services - or offshoring business processes. A high level of expertise, a huge talent pool, lower expenses and a simple-to-understand, neutral English accents are some of many factors driving companies to consider South Africa among their preferred outsourcing destinations. With the increasing focus on analytical and Artificial Intelligence (AI)-driven solutions, South Africa has a larger quantity of actuarial sources than India and provides support in several languages, including French in addition to Spanish. The use in the use of Artificial Intelligence (AI) and robotics as a complementary strategy for human resource management could aid the companies in South Africa BPO industry. South Africa BPO industry in the race against competitors in Europe and in the Middle East & Africa.
This will, in turn, be predicted to drive market's growth in the near future. In addition, Business Process Enabling South Africa is an industry body for the African Business Process Outsourcing industry body has played a crucial contribution to promoting the industry's growth by helping to develop skills, sharing best practices, and providing its members with the ability to connect with other businesses and associations that influence the transition of the industry into technologically-informed economy. Additionally to that, the South African government has introduced numerous tax-related incentives and plans for the creation of infrastructure as well as support for skilled workers. One of these notable initiatives is that of the Monyetla Work Readiness Programme.
The main goal of this program is to increase the number of entry-level workers who can be employed employees. By utilizing it's Monyetla Work Readiness Program, BPO employers lead a collaborative approach to find and train entry-level personnel. The initiatives have created youth employment opportunities , which in turn contribute to the region's export earnings through offshoring. This afribpo sector in SA is constantly growing, offering new job opportunities which, in turn, play a key part in the region's development. Outsourcing service providers believe they are in a position where South Africa enjoys better opportunities relative to other countries in Africa for providing BPO services to businesses. Cape Town has particularly emerged as an ideal BPO destination of choice.
Service Insights The customer support segment was dominant in the market, with a share greater than 31% in 2019 , and will grow by the fastest rate of growth from 220-2027. This growth is due to the increasing presence of service centers that necessitate online and offline technical assistance. Customer service BPOs specialize in handling questions from customers via telephones, chat, emails as well as social media platforms and other channels. The customer service BPO sector is growing and growing in Cape Town and has risen considerably over the last few years and is expected to be a major growth area in the coming years. Furthermore, South Africa holds an advantage in client service BPO services. Its ability to help businesses lower their costs with a speedy shift towards remote operations due to the Covid-19 outbreak has made SA's Customer Service Centers an edge over other hubs.
The finance & accounting segment will grow at a rapid growth rate of 13.6 percent in the forecast. The benefit of finance & accounting BPO services for reduced cost for financial tasks is also driving their adoption across a variety of financial institutions within the country. South Africa is steadily advancing in the field of international service delivery for the financial services industry. Some financial companies are increasingly settling on South Africa for establishing their African back-office shared service hubs to be an element of the global distribution networks.
End-use Information The IT and Telecommunication segment dominated the regional market with a share of more than 35% in the year 2019. The telecom and IT industry is among the major adopters of BPO services. In the IT space, South Africa has performed an essential role in the area of service desk and technical helpdesk due to its impressive voice skills. Moreover, the country consists of a large number of IT graduates with required technical skills that, in turn, reduces the obligation and the expense of training for companies. South Africa continues to remain one of the prominent locations for outsourcing IT services due to the rapidly expanding group of companies. These firms provide IT-focused solutions to various industry verticals including websites, development and architecture, and platform and application development. The rising ICT expenditure in the country for regular maintenance of current IT and communication systems as well as the replacement of outdated systems are likely to drive the industry's growth.
It is expected that the BFSI segment is expected to record the highest CAGR during the forecast time. Its easy access to skilled workforcethat includes Chartered Financial Analysts (CFAs), Chartered Accountants (CAs), and actuaries, has been the primary driver for success for the country in this particular field. Global banks are increasingly choosing South Africa for the delivery of intricate work in banking sectors, like life insurance and fund accounting processes. South Africa provides a huge amount of voice-based processes in the area of insurance which include commission handling, process of processing claims and policy administration.
Key Companies & market share insights The market is highly competitive since the majority of major companies are concentrating on increasing their market share by implementing various business strategies, such as partnerships, mergers and acquisitions as well as product development. These strategies aid organizations in expanding their geographic footprint and increase their offerings on international and national markets. For example, in August of 2020 WNS (Holdings) Ltd was the first to launch EXPIRIUS the first-ever user experience (CX) solution that integrates human-assisted designs with AI-driven conversational insight to improve customer interactions. A few of the main players in 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 Covered in the Report This report anticipates revenue growth at the country levels as well as a review of the latest industry trends from 2016 to 2027 across every sub-segment. To make this report, Grand View Research has separated in the 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)
Procurement & Supply Chain
Customer Service
Others
The end-user Outlook (Revenue, USD Million 2016, 2016 - 2027)
Banking, Financial Services, and Insurance (BFSI)
Healthcare
Manufacturing
IT & Telecommunication
Retail
Others





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