South Africa’s fast-growing global business services (GBS) sector created over 14 000 new jobs between January and September 2024, with 12 564 of those taken up by the country’s youth, Business Process Enabling South Africa (BPESA), the national industry body for the GBS sector, reports.

BPESA notes that the sector, which contributed just under R13.6-billion in export revenue during the same period, is on track to create 500 000 jobs by 2030.  

The ambitious job targets are part of the GBS Sector Master Plan, an initiative spearheaded by the Department of Trade, Industry and Competition (the dtic) with BPESA and the Harambee Youth Employment Accelerator.  

The latest figures were unveiled at BPESA’s AGM held on January 29.

In his opening address, BPESA chairperson Zain Patel revealed that, in the last year, ten new international business process outsourcing (BPO) operators had chosen to invest in South Africa.

“This reaffirms South Africa’s position as the third most attractive offshoring destination in the world for prominent international firms in the telco, retail, healthcare, technology and financial services sectors,” he said. 

BPESA says this achievement can be attributed, in part, to numerous market activities spearheaded by BPESA with the support of the dtic, Invest SA, Harambee and other government and industry stakeholders.

It notes that these activities are tailored to key international source markets such as the UK and the US, adding that 51.2% of globally focused workers service the UK market while 30.4% service the US market.

“Since first quarter of 2022, which is when the sector masterplan was officially launched, we have managed to attract 30 international investors to our shores, of which 22 converted to invest in South Africa.

“They include 12 business process outsourcing operators and ten end-user clients.  We expect they will create between 13 000 and 17 000 new jobs in the next 18 to 24 months, which is a fantastic success story for the sector and the country,” said BPESA CEO Reshni Singh.

According to Singh, significant strides are being made towards advancing South Africa's demand-side commitment goals under the GBS Sector Master Plan.

“South Africa’s efforts to strengthen its global competitiveness in the GBS sector have yielded some positive shifts.

“The dtic has played a pivotal role in supporting the industry to remain globally cost-competitive by undertaking a review of the national GBS Incentive Programme as well as a refresh of South Africa’s Value Proposition which has been enhanced with specific strategies for source markets like the UK and the US,” she said, highlighting the strength of public-private partnerships to win, grow and retain business in South Africa.

“On average, South Africa is significantly more cost effective than markets such as Poland and Malaysia. Initiatives such as the GBS Incentives and cost management strategies aimed at attracting and retaining international clients, have also made the country comparable with locations such as Jamaica, Egypt and the Philippines, which are our main competitors,” Singh continued.

ADVANCEMENTS IN INFRASTRUCTURE

Meanwhile, BPESA points out that provincial and local governments are actively working to develop additional business locations outside the main urban centres – Tier 1 and 2 locations – with the Eastern Cape and Gauteng leading initiatives to foster investment and drive economic growth.

The Eastern Cape Development Corporation is piloting projects in Gqeberha and East London, while Gauteng has introduced its Township Economic Regeneration Plan.

Critical infrastructure developments are underway, including a plug-and-play BPO park in the Coega Special Economic Zone and expanded broadband access to key locations.

By partnering with community facilities, BPESA says South Africa is transitioning towards hybrid work models that inclusively accommodate work-from-home setups.

It notes that the industry’s success is underpinned by a public-private partnership between industry, government and social partners who were the key signatories to the GBS Sector Master Plan.

BPESA expresses that a key enabler of this ecosystem is Harambee Youth Employment Accelerator, which as a National Pathway Management Network supports and enables the sector orchestration through business/government partnerships as well as the Presidential Youth Employment Initiative.

“The dynamic landscape of global business services is constantly evolving, with factors like AI and changing market conditions bringing both challenges and opportunities. As BPESA, our goal is to ensure South Africa not only attracts but also retains international investors.

“We are dedicated to building a sustainable ecosystem that empowers local communities and enhances our global competitiveness. Our commitment to innovation and skills development is unwavering.

“Under the guidance of the dtic, and partnership with Harambee Youth Employment Accelerator, we are fostering a promising future, positioning South Africa as a powerhouse in global business services,” Singh said.