South Africa becomes global BPO contender

It’s well known that South Africans are competitive and are renowned for a high work ethic. Despite the well-known challenges that our country has, we enjoy a robust independent media, and a sound financial system, and now our intensity to compete has South Africa spotlighted in the Business Process Outsourcing business, a stage often dominated by India and the Philippines. Offering a skilled workforce, cultural alignment with major markets, and significant cost advantages, the country is building out its BPO industry at scale.

Of course, perceptions persist about political risk, infrastructure stability, and the broader view of outsourcing to Africa remain obstacles to widespread adoption. However, the industry has proven resilient, with growth rates exceeding 20% annually over the past few years. Driving this transformation is a new generation of organisations blending innovation with people-first strategies to position South Africa as a global leader in outsourcing.

The Global Demand for Outsourcing

Global organisations face mounting pressures to reduce costs, address talent shortages, and build operational resilience. This has driven many to consider outsourcing as a strategic solution. While traditional markets like the Philippines and India remain dominant, South Africa is quickly gaining ground due to its unique strengths.

Among these is an abundant pool of skilled and educated labour, an important advantage in industries requiring complex customer interactions. Additionally, South Africans speak English with a neutral accent that resonates well with customers in the UK, US, and Australia.

South Africa’s time zone further boosts its appeal, allowing companies to operate 24/7 without expensive overtime costs. “It’s not just about saving money,” explains Stephen de Blanche, Chief Revenue Officer of one of the country’s leading outsourcing providers, Nutun. “It’s about delivering exceptional customer experiences through a combination of skill, empathy, and alignment with our clients’ needs.”

Overcoming Challenges

Despite its advantages, South Africa’s BPO industry faces significant hurdles. Many companies still see outsourcing to Africa as a risk, concerned about governance and infrastructure reliability. Others compare South Africa to long-established destinations in Asia or Latin America, where economies of scale are more mature.

However, the perception of risk is increasingly being challenged. The country’s modern infrastructure, robust telecommunications networks, and strong compliance frameworks have created a solid foundation for growth. “For organisations willing to take a closer look, South Africa offers world-class solutions delivered with a focus on quality and trust,” the CRO asserts.

A People-First Approach

One of the country’s greatest strengths lies in its workforce. With an unemployment crisis beyond 30%, South Africa has a vast pool of motivated, highly educated individuals ready to support global clients. Unlike other outsourcing destinations where call centre work is often seen as a stopgap job, in South Africa, it is viewed as a genuine career path.

This mindset has led companies to prioritise employee retention. The organisation invests heavily in benefits such as pensions, healthcare, and development programmes to create long-term career opportunities for its employees.

“We are a people business which recognises that people development and retention is critical to success,” he explains. “The longer our employees stay, the more they become immersed in the client’s brand and culture. This leads to better outcomes and deeper connections with the end customer.”

Innovation Driving Success

Beyond its people, the company’s commitment to technology has also been a game-changer. Investments in AI-driven voice analytics, data platforms, and gamification tools empower agents to deliver smarter, more efficient service. “Technology doesn’t replace human interaction—it enhances it,” he adds. “We’re using AI to guide agents through complex calls, analyse customer sentiment in real-time, and optimise outcomes across the customer journey.”

“We’re one of the few BPOs that can provide the entire customer lifecycle outsourcing capability. Our history and our heritage are built in the collection spaces, and over the past few years, we’ve gradually expanded our capabilities to span the full customer experience lifecycle.”

Operational Resilience and Risk Mitigation

For global clients, risk mitigation is a major driver of outsourcing. Diversifying operations across multiple geographies reduces reliance on any single region, safeguarding against localised disruptions like natural disasters or economic instability.

The organisation has built a robust infrastructure with delivery centres in Durban and Johannesburg, ensuring continuity and scalability for its clients. “Beyond BPO solutions, we offer resilience,” he explains. “Our ability to scale quickly, while maintaining high service standards, gives our clients the flexibility they need to grow.”

South Africa’s Broader Impact

As the industry expands, its impact on South Africa’s economy cannot be overstated. BPO is one of the few sectors creating jobs annually and upskilling consistently, offering young people meaningful opportunities in a challenging labour market.

The organisation takes this responsibility seriously, embedding social impact into its business model. Through initiatives in education and youth employment, the company is not only driving business outcomes but also uplifting communities. “It’s about creating a sustainable future—for our clients, our employees, and South Africa.”