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Business Process Services

Companies worldwide are responding to increasing cost and efficiency pressures, as such South Africa has become over the past years, one of the favourite international location for business process outsourcing and offshoring. Business process outsourcing (BPO) and offshoring has become the major global trend and industry, worth an estimated US$130-billion a year, has an expected annual growth rate of about 50% for the next five years.

BPO is about relocating business processes that a company usually performs in-house to a third-party service provider, such as a customer care or call centre, to carry out on behalf of the company. Outsourcing becomes offshoring when the third-party service provider is located overseas.

The BPO industry's focus sectors include financial services, insurance and telecommunications, with outsourced processes including after-sales services, data capture and conversion, accounting, benefits administration, human resource functions, and website design and development.

Identified as a key sector in the South African government's strategy to boost the country's economy and employment creation, business process outsourcing and Readiness Programme. As such contact centres and business process outsourcing (BPO) has been prioritized by the South Africa provincial governments as one of the five key growth areas.

 

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