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While South Africa is renowned for its beautiful wildlife and scenery, it also has a growing economy and a government that recognises the importance of the business process outsourcing (BPO) sector.
As companies worldwide respond to increasing cost and productivity pressures, South Africa is becoming a preferred international destination for BPO.
BPO is currently valued at $130 billion a year in the global economy, with an expected growth rate of about 50% for the next five years.
The South African government has identified the importance of this sector as a part of its strategy to boost the country’s economy and create jobs. As a result, a government-backed BPO support programme was launched in 2007 to enhance South Africa’s competitiveness in this sector. It includes a budgeted £75 million in investment incentives such as training grants and subsidies and a developmental pricing framework for telecommunications.
South Africa is uniquely positioned, as it slots in between near-shore locations such as Eastern Europe or Canada which offer close proximity and cultural affinity than more traditional offshore destinations like India.
The following factors contribute to South Africa’s unique global positioning:
- World-class service levels.
- Time-zone compatibility with the UK.
- High rates of fluency in English.
- Neutral English accents that are easily understood.
- Cultural affinity with the UK.
- A favourable exchange rate.
- Strong government support.
- State-backed incentives.
- An advanced and growing telecommunications network.
International companies that have already chosen South Africa as a BPO destination include IBM, Fujitsu Siemens, Lufthansa, Virgin, Sykes, Avis and the Car Phone Warehouse.
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