BPESA (Business Process Enabling South Africa), the national industry association for South Africa’s Global Business Services (GBS) sector, has unveiled a refreshed sector value proposition aimed at attracting increased foreign direct investment (FDI) and creating 500 000 cumulative jobs by 2030. Total headcount in Global Business Services grew from 65 000 in 2019 to an estimated 150 000 in 2024, while market revenue grew from USD 1.04 billion (approximately R18.9 billion) to an estimated USD 2.91 billion (just under R53 billion), in the same period, driven by significant investment from global players in recent years.
“The refreshed value proposition is part of BPESA’s drive to champion South Africa as a premier destination for Global Business Services, working alongside the Department of Trade, Industry and Competition (the dtic), InvestSA, Harambee Youth Employment Accelerator, and other government and industry stakeholders.
“We believe the sector’s unique blend of cost-effectiveness, talent and infrastructure and its proven track record of success, competitiveness and maturity in this market will continue to attract foreign direct investment to our shores and drive inclusive growth for the country,” said BPESA CEO Reshni Singh.
South Africa’s offshoring locations are concentrated in Cape Town, followed by Durban, and Johannesburg. Tshwane, East London, and Gqeberha are also leading locations offering a significant pool of entry-level talent and fostering the development of future workforce potential. Many global and regional companies have set up or expanded their operations in South Africa; these companies represent a variety of industries, such as technology and communications, financial services, legal and healthcare. This has created a positive feedback loop, reducing perceived market risk for new entrants.
The UK remains South Africa’s largest source market for global business services delivery, with a 55% share in terms of headcount. The US market has grown rapidly, with 33% of globally focused workers servicing that market, up from just 1% in 2019. Australia and Europe – mainly Germany, France and Netherlands – are also important source markets for the sector.
The refreshed value proposition, which supports the objectives of the GBS Sector Master Plan spearheaded by the dtic, rests on six strategic pillars. These are unpacked in a comprehensive, data-rich report commissioned by BPESA, and compiled by Everest Group, a leading global research firm.
The value proposition was launched at an event held at Harambee Youth Employment Accelerator’s Cape Town offices.
IMPACT IN ACTION – GBS VALUE PROPOSITION HIGHLIGHTS
Infrastructure and enabling environment
- One of the best ICT infrastructures in Africa, enabling seamless global connectivity
- Global contact centre standards (ISO 18295) are based on South African best practices
- Strong government support at national, regional, and sectoral levels to boost infrastructure and skills development
“The GBS sector has become a powerful engine for inclusive economic growth and has the South African government’s committed support. As outlined in the latest budget speech, the sector’s competitiveness will continue to be enhanced through various incentives programmes under the dtic, through sector-specific incentives as well as incentives for special economic zones,” said Singh.
Mature industry and value-driven growth
- Expertise in voice, omnichannel CX, and complex process management, with a shift towards tech-enabled, high-value services
- Deep domain knowledge in financial services
- Evolving capabilities in next-generation solutions such as, AI, ML, big data & analytics, cloud, cybersecurity
People prowess
- Access to a large, young, and highly trainable workforce fluent in English, with neutral accents and strong empathy levels
- Deep-rooted cultural affinity with the UK, US, and Australia, fostering superior customer interactions
- A leader in impact sourcing, a proven approach that boosts competitiveness while driving positive business and social outcomes – 90% of new hires are youth, with more than 30% coming from households where no one was previously employed, or where families are entirely dependent on social grants.
“In South Africa, impact sourcing is changing the lives of previously unemployed youth and equipping them with comprehensive training, in-demand skills, and sustainable career pathways,” said Singh.
Assured service excellence
- Consistently achieves high customer satisfaction (CSAT) and NPS scores, outperforming peer locations in managing complex interactions and sensitive customer cases
- Recognised for high empathy service delivery, excelling in customer journey management and first-call resolution rates
- A strong focus on omnichannel support, AI driven automation, and predictive analytics to enhance customer engagement
Cost arbitrage and business advantage
- 55-65% cost savings over source geographies such as Dallas (US), Manchester (UK), and Sydney (Australia)
- Competitive government incentives further reduce operational expenses by 7-10%
- Flexible Tier 1 and Tier 2 city options to optimise cost-effectiveness without compromising service quality
According to Singh, BPO operators have strategically expanded into Tier 2 and Tier 3 cities, including Soweto and Alexandra in Gauteng, Ilembe and Umlazi in KwaZulu-Natal, Mitchells Plain and George in the Western Cape.
“In the process, the sector has catalysed entrepreneurial growth through the emergence of small, medium, and micro enterprises (SMMEs) that have created sustainable, quality employment opportunities in regions previously underserved by the formal economy,” she said.
The GBS sector supports several other high priority sectors. This includes ICT, Infrastructure, Transport, Hospitality and Tourism, all highlighted to drive development and economic growth in South Africa.
Tactical advantage
- Provides strategic access to the African continent through a regional GBS hub-and-spoke delivery model
- Enables businesses to tap into Africa’s rapidly growing markets, unlocking new revenue opportunities and scalability
- A resilient and future-ready business environment, fostering long-term growth and global service excellence
“As we work to attract significant investment and create substantial job opportunities, particularly for youth, developing a diverse, skilled, and future-proof workforce remains our highest priority to ensure sustained growth and long-term industry resilience,” Singh concluded.
The UK remains South Africa’s largest source market for global business services delivery, with a 55% share in terms of headcount. The US market has grown rapidly, with 33% of globally focused workers servicing that market, up from just 1% in 2019. Australia and Europe – mainly Germany, France and Netherlands – are also important source markets for the sector.
The refreshed value proposition, which supports the objectives of the GBS Sector Master Plan spearheaded by the dtic, rests on six strategic pillars. These are unpacked in a comprehensive, data-rich report commissioned by BPESA, and compiled by Everest Group, a leading global research firm.
The value proposition was launched at an event held at Harambee Youth Employment Accelerator’s Cape Town offices.
About Business Process Enabling South Africa (BPESA)
Recognised as the national industry body for the GBS sector, the purpose of BPESA, a non-profit entity, is to promote trade and serve the interests of its members and numerous stakeholder groups involved in the development, growth, and sustainability of the Global Business Services (GBS) sector in South Africa.
BPESA is committed to fostering an environment conducive to the growth and success of the GBS sector, ensuring its members and stakeholders benefit from a thriving and sustainable industry. Website: www.bpesa.org.za
About the Global Business Services (GBS) Masterplan
Officially launched in November 2021, the Global Business Services (GBS) Masterplan is a detailed blueprint and country strategy to create 500,000 cumulative international-servicing jobs in the sector by 2030. The masterplan was commissioned by South Africa’s Department of Trade, Industry and Competition (the dtic) and its national investment promotion agency, InvestSA, with BPESA (Business Process Enabling South Africa), Harambee Youth Employment Accelerator and other stakeholders as signatories.
The Masterplan objectives are underpinned by five strategic focus areas: Demand Investment Promotion, Supply (Skills), Infrastructure, Transformation and Sustainability. These strategic focus areas have a clear implementation plan to achieve four growth scenarios: a baseline scenario, expanded scenario, accelerated scenario and highest growth scenario to achieve the 500,000 jobs by 2030.
