Strategic Planning - the BPO Service Advantage

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Becoming Strategic - South Africa’s BPO Service Advantage (An LSE Outsourcing Unit Report – Department of Management – London School of Economics and Political Science)

Since 2007, South Africa has been one of the world’s upcoming Business Process Outsourcing (BPO) offshore destinations. Major companies like Lufthansa, Amazon, ASDA and Shell have set up captive centres. Providers like Capita, Serco and WNS have acquired, or partnered with, local companies to steer their client work to South Africa’s advantageous offering, and new outsourcing deals have been struck, for example Shop Direct-Serco-Teleperformance and iiNet-Merchants. Much of this has occurred in the last 18 months.

Accelerating growth has seen South Africa become a ‘go-to’ destination. This study finds that this growth is set to continue over the next three years and represents a great opportunity for South Africa. South Africa is maturing and becoming strategic in its ability to offer voice, complex back office BPO and a shared service platform for southern African markets. Moreover, its extant, strong capability in higher value work in knowledge process outsourcing, financial services BPO and legal processing outsourcing provides the platform for delivering on its considerable potential in these areas over the next 3-5 years.

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