South Africa is a leading destination for global business services (GBS), particularly customer experience (CX) outsourcing. According to the South Africa GBS Investor Handbook, international businesses outsourcing to the continent achieve first-call resolution rates (FCR) and CX satisfaction levels that are 18% higher than those in other offshore markets.
These advantages lead to improved profitability, a 4% to 5% annual increase in client retention, and even higher customer lifetime value (CLV).
A strong performer in global CX
South Africa consistently ranks among the top three offshore CX delivery locations. In the Ryan Strategic Advisory Front Office BPO Omnibus Survey, South Africa ranked as the second-most favored offshore CX location this year, sharing the spot with the Philippines. Notably, it held the top position in 2021 and 2022 after three years in second place.
Several factors contribute to this success. South Africa’s cultural alignment with Western markets and high English proficiency ensure smooth communication between service providers and clients.
The workforce’s empathetic approach to customer service also boosts satisfaction and loyalty. Moreover, South Africa’s strong work ethic, reliability, and commitment to quality reinforce its status as a CX outsourcing leader.
Growing demand from emerging industries
Emerging sectors in South Africa, including financial technology (fintech), e-commerce, and healthcare, further drive demand for CX outsourcing. Fintech companies must ensure secure and efficient customer interactions as their user base continues to expand.
At the same time, the growing e-commerce industry requires effective handling of customer inquiries, complaints, and refunds. Meanwhile, healthcare and telemedicine companies increasingly seek specialized CX solutions to manage sensitive information and provide timely support.
This expanding demand offers numerous opportunities for South African CX providers to develop industry-specific solutions.
Why outsource to South Africa?
The African business process outsourcing (BPO) market is projected to generate $7.54 billion in revenue in 2024. With a compound annual growth rate (CAGR) of 6.31% from 2024 to 2029, the industry expects a total revenue of $10.24 billion by 2029.
Several advantages support South Africa’s appeal as an outsourcing destination:
- Superior CX delivery. South African BPO providers deliver consistently high-quality CX, enhancing customer satisfaction and loyalty.
- Cost-effective solutions. South Africa offers competitive pricing, helping businesses optimize operating costs.
- Skilled talent pool. The country has a sizeable multilingual workforce skilled in handling complex business processes.
- Strong government support. The South African government actively backs the GBS sector with supportive initiatives and incentives.
- Advanced infrastructure. South Africa boasts reliable infrastructure for efficient service delivery, including high-speed internet connectivity.
- Critical time zone advantage. Located in a convenient time zone, South Africa enables seamless 24/7 support for global clients.
With these advantages, South Africa is well-positioned to continue its growth as a premier global business services hub and meet the evolving needs of international companies across multiple sectors.
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BPESA. (2021, April 8). South Africa awarded Top 2021 Most Favored Global Offshore CX Delivery Location. Retrieved November 11, 2024, from https://www.bpesa.org.za/news/356-south-africa-awarded-top-2021-most-favored-global-offshore-cx-delivery-location.html
BPESA. (202q, April 11).2022 Most Favoured Global Offshore CX Delivery Locations Announced. Retrieved November 11, 2024, from https://www.bpesa.org.za/news/408-2022-most-favoured-global-offshore-cx-delivery-locations-announced.html
