Business Process Outsourcing
business process outsourcing bpo hero
Become part of a city recognised as a leading offshore BPO destination
The Western Cape is home to 61 percent of South Africa’s BPO international clients. The industry continues to attract business from top firms across Europe, the United States and Australia.
The BPO sector is a major economic driver in Cape Town, accounting for 54 864 jobs contributing about 12bn to the regions annual GDP.
In 2016, South Africa was named ‘Offshoring Destination of the Year’ at the Global Sourcing Association (GSA) awards in London. South Africa also received the National Outsourcing Association’s (NOA) Skills Development Project of the Year award in 2014, the European Outsourcing Association’s (EOA) Offshoring Destination of the year award in 2013, and the NOA’s Offshoring Destination of the year award in 2012.
The industry contributed about 55 000 jobs to the total BPO industry in the country in 2016, 31 364 of which were domestic and 23 500 of which were offshore. In the same year, the Western Cape BPO Industry was dominated by the financial services (40%) and retail (17.2%) sector (BPESA, 2017). Of the industry’s operations in the Western Cape, 59.9% are of an outsourcer nature and 40.1% are captive. The predominant markets it serviced in 2017 were the United Kingdom and Australia.
Competitive advantages of Cape Town as a BPO business location
Cape Town presents a number of opportunities and advantages to BPO businesses locating in it, including:
- Cape Town has a rich talent pool with a predominantly English-speaking workforce which are able to engage with international clients.
- Cape Town is in the same time zone as Europe, ensuring that working hours overlap.
- The city’s natural appeal, with its beaches and mountains provides for a quality enhanced lifestyle, a big draw card for very mobile BPM investors in considering a business location.
- There are strong data protection laws and standards in South Africa, similar to those in Europe, which gives prospective businesses information security.
- There is a relatively good availability of quality technology services.
- Cape Town has a relatively low cost of doing business, compared to other cities.
- There is relatively good air connectivity (compared to other low cost destinations).
- An added advantage is the closely knitted integrated public transport system.
- Complementary and supporting industries like the Finance and ICT industries are strong in Cape Town.