The Cape Town contact centre and business process outsourcing (BPO) industry now employs 14 345 people compared to just over 10 000 a year ago and is showing signs of unprecedented growth, says CallingtheCape.
According to Luke Mills, CallingtheCape executive director, there are now 167 contact centre and BPO operations compared to 116 operations in 2004. This represents growth of 39% in the number of agent positions and 43% in the number of staff.
These figures are revealed today in CallingtheCape`s 2005 Key Indicator Update, a sequel to last year`s survey conducted in association with Deloitte. The research, carried out by Voice Recruitment and analysed by Deloitte, confirms the industry is "thriving beyond expectations". However, it recommends that the government and private sector must continue cooperating to ensure future growth is not sabotaged by skills shortages.
CallingtheCape has also attracted new investment in 2005 worth R506 million, up 19% from the R426 million secured in 2004. Seventy-six percent of this investment originated from the UK. As these investments unwind in the coming years, an additional 2 000 new agent positions will be created, fuelling further growth in the industry, says CallingtheCape.
Since over 50% of BPO investments are spent as agent salaries, the investment boom is bringing real financial benefit to the Cape Town labour force, as well as new job opportunities - a key measure of success for the provincial government of the Western Cape, it says.
"The micro economic development strategy has identified call centres and BPO as a critical sector in the Western Cape. We have developed a package of interventions which includes addressing skills shortages to ensure an enabling environment for call centres and BPO to reach their full potential and create as many jobs as possible," says Tasneem Essop, provincial minister of environment, planning and economic development.
"In fact, we have well over 4 000 new jobs, which is immensely encouraging," says Mills. "Cape Town is developing an international reputation for high quality of service and is attracting high calibre investors, both international and domestic."
The growth in jobs has been paralleled by a small increase in attrition, and above-inflation salary increases, both potential warning signs of increasing competition for skills. However, Mills says Cape Town`s attrition rate of 14% remains well below international norms, and is particularly impressive in an industry that has grown by 70% in just two years.
Mills says skills shortages in specialist positions could become an issue if the industry continues to grow at current rates.
"While agent talent is abundant, middle management take three years to reach full maturity and capability, so the sector needs to take a progressive attitude to skills development. It`s also vital for government and the industry to continue working together to develop a coordinated and appropriate response," he says.
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