BPO to enhance service delivery, create opportunities in SA

Research by C3 Africa and Pulse Research in 2008 shows that business process outsourcing (BPO) is growing at a phenomenal rate, as organisations worldwide respond to increasing costs and efficiency pressures by relocating non-core business functions, such as contact centres, to third-party service providers typically based in low-cost locations.

According to Pommie Lutchman, Ocular Technologies managing director, BPO and offshoring are becoming increasingly popular and are key factors in boosting the country's economy and creating jobs.

“BPO and offshoring are expected to create 25 000 jobs directly and another 75 000 indirectly in South Africa, and to contribute up to R7.95 billion to the national economy this year,” he says. “It is a worldwide trend and the industry is worth an estimated $130 billion a year, with an expected annual growth rate of about 50% for the next five years. South Africa is in a great position, having the required skills and infrastructure, as well as a big cost advantage for international companies, to take advantage of this lucrative industry.”

In fact, there are many aspects that make the country a desirable destination for BPO, including fluency in English, coupled with neutral accents that are easily understood in western markets. The exchange rate, strong government support and time zone compatibility, especially with Europe, are additional positive factors. Furthermore, South Africa has an advanced, but growing telecommunications industry, with international call centre infrastructure providers and world-class service levels of call centre staff.

“Due to global advancements, an organisation's call centre today needs to be automated, integrated and operated on the latest technology, so as to boost productivity, increase revenue and customer satisfaction and ultimately differentiate the organisation in an already crowded marketplace,” explains Lutchman. “As people increasingly experience good service from contact centres, they are becoming less tolerant of inefficient service, which poses a challenge for organisations on how to enhance customer perception and the value placed on the services offered.

“With much counting in our favour, a professional BPO outsourced partner must still provide customer care that is superior in terms of cost, control and quality in order to set it apart in the industry - both locally and internationally. A BPO partner must stay abreast of technology developments and ensure that the technology on offer will provide benefits to potential clients.

“Although the telephone still remains the channel of choice for most people, customer contact is moving beyond traditional delivery channels to include e-mail, the Web and digital TV. Therefore, contact centres today must be flexible, modular and able to provide detailed real-time and historical reporting and all interactions must be recorded to ensure that the quality of customer service exceeds customers' expectations,” says Lutchman.

“Most importantly, clients must have peace of mind that the BPO partner will offer an excellent service, cost-effectively without compromising customer service.”