The South Africa business process outsourcing market was valued at USD 1.5 billion in 2019 and is projected to expand at a CAGR of 13% from 2021 to 2028. The growth of the market is attributed to continuous inventions, developments in technology, and rising competition, which is projected to continue throughout the forecast period.
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South Africa has been home to many call center operations for the past few years and has earned global recognition as a favorite and trustworthy offshore outsourcing destination. It acts as a destination for global business services - or offshoring business processes. A large talent pool, low costs, sufficient expertise, and easy-to-understand neutral English accents are some of the key factors that are prompting companies to choose South Africa as their preferred outsourcing destinations. With the focus on analytics and Artificial Intelligence (AI)-driven solutions, South Africa has a large number of actuarial resources as compared to India and can offer help in numerous languages, such as French and Spanish. The use of artificial intelligence (AI) and robotics as a corresponding strategy for human resources management can also support the officeholders of the South Africa BPO industry in competing with their rivals in Europe and the Middle East & Africa.
This is estimated to increase the market growth in the coming future. Moreover, Business Process Enabling South Africa, a South Africa-based BPO industry body, has performed an important role in assisting the industry growth by supporting skill development, sharing best practices, and offering its members with access to other business networks & associations that propel and influence the industry’s transition into digital economy. Furthermore, the government of South Africa has launched numerous taxation incentives and schemes for skills-related support. One of the major initiatives is the Monyetla Work Readiness Programme.
The major focus of this program is to grow the pool of employable entry-level personnel. Through the Monyetla Work Readiness Programme, BPO employers run a consortia approach to hire and train entry-level staff. Such initiatives are generating youth service opportunities and thereby contribute to the region’s export profits from offshoring services. The BPO industry in South Africa is expanding constantly, providing new job opportunities and playing a decisive role in the region’s economic development. Outsourcing service providers believe that South Africa has better opportunities as compared to other countries in Africa, to offer business outsourcing services. Cape Town has especially developed as a BPO destination of choice.
Market Trends, Drivers, Restraints, and Opportunities:
- The need to control the operating prices, harmonize processes, focus on core abilities, and recruit qualified talent is likely to fuel the market over the coming years.
- Government incentives to the BPO market is helping to encourage a flurry of international investments in the market, which is expected to increase the market revenue.
- Effortless understanding of normal English accents, large expertise group, low prices, and adequate knowledge are some of the key factors driving the South Africa business process outsourcing market.
- Lack of data privacy and integrity may hinder the market growth throughout the forecast period.
- Emerging new technologies and innovations by some players of the market are presenting numerous opportunities for the expansion of the market.
Market Segment Insights:
Based on services, the market is divided into procurement & supply chain, knowledge process outsourcing (KPO), human resources, finance & accounting, and customer services. The customer service segment led the market with a share of over 31% in 2019 and will develop further at a high CAGR from 2021 to 2028. This growth is attributed to the rising establishment of service centers which require online and offline technological support. Customer service BPOs are devoted to managing customer queries produced through phones, social media platforms, email, chat, and other channels.
In terms of end-users, the market is segregated into banking financial services and insurance (BFSI), retail, manufacturing, it & telecommunication, and healthcare. The IT & telecommunication segment led the regional market with a share of more than 35% in 2019. The IT and telecommunication sector is one of the key adopters of BPO services.
Competitive Landscape
Major players competing in the South Africa business process outsourcing market include WNS (Holdings) Ltd., Wipro Ltd., Webhelp, TTEC Holdings, Inc., The IT Guys, Teleperformance SE, Talksure Group, Startek, Sodexo, SA Commercial, Rewardsco, Pra Group, Inc., Pioneer Credit, Paschoalotto Logo, Outworx Contact Centre, O’Keeffe & Swartz, NCR Corp., Merchants SA (Pty) Ltd., Mango5 BPO, Infosys Ltd. (Infosys BPM), Indox (PTY) Ltd., Ignition Group, iContactbpo, IBM Corp., HCL Technologies Ltd., Encore Capital Group, DSG Group, Digicall Group, Credit Corp Group, Collection House Ltd., CCI South Africa, Capita plc, Capgemini, Boomerang Marketing, Amdocs, Altron, Accenture Plc, and 121 BPO Services.
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Fact.MR has recently added a new research report on the global Business Process Outsourcing market growth to its repository.
This report aims to help readers in understanding key technologies as well as product developments in this market during the forecast period of 2019 to 2029.
Analysts at Fact.MR highlight that the global Business Process Outsourcing market will show growth at a prominent CAGR of 7.5% during the period of analysis.This report intends to offer an in-depth analysis of various important aspects such as opportunities, drivers, challenges, and restraints of the global Business Process Outsourcing market.
In addition to this, it provides detailed data on various key players working in this market together with important data on their diverse business strategies to maintain their prominent market position.The overall share, volume, and other additional important information of important players is also precisely presented in the latest report on the global Business Process Outsourcing market.
Apart from this, readers get a clear idea about emerging players and the competitive landscape of the market for Business Process Outsourcing during the forecast period of 2019 to 2029.
Thus, the report includes reliable data on partnerships, new product launches, mergers, and acquisitions occurring in the global Business Process Outsourcing market during the period of analysis.To know more about this market – trends, drivers, regional analysis – request a sample @ https://www.factmr.com/connectus/sample?flag=S_id=4599Fact.MR’s latest report delivers a complete study of the impact of COVID-19 on the Business Process Outsourcing market in the present situation.
A complete detail of the effect of COVID 19 on the business outsourcing service market is supplemented along with the report.
On the conclusion of the review period, the business process outsourcing service market can value at USD 335.2 Billion.The rise in exercising of BPO services across the booming IT and telecommunication sector can promote the expansion of the BPO service market across the analysis period.
On the other side, the increase in issues associated with data privacy and integrity can pose major threat to the expansion of the global business process outsourcing (BPO) market rise.Segmental AnalysisThe segment evaluation of the Global Business Process Outsourcing (BPO) Services Market is done by Organization Size, Type, Deployment, and Vertical.The type based segments of the BPO services market are back office outsourcing, finance & accounting outsourcing, procurement outsourcing, human resource & recruitment outsourcing, e-commerce support services, IT outsourcing, training & development outsourcing, and others.
The finance & accounting outsourcing segment can rise at 10.0% CAGR and earn about USD 30.58 Billion in the years to come.
The large enterprise segment can rise at 8.5% CAGR to earn USD 126.62 billion revenue for the global market.
The SME segment can valued at USD 59.60 Bn at 14.9% CAGR across the review period.The vertical based segments of the market are IT and telecommunications, life sciences, BFSI, retail, manufacturing, consumer goods, government and defense, healthcare, and others.
