Despite the challenges that include the high costs of telecommunication, the business process outsourcing (BPO) sector continues to contribute to the country's economy, says the Department of Trade and Industry (DTI).
Speaking this week during the BPO Week 2009 conference, in Port Elizabeth, Nimrod Zalk, deputy director-general, industrial development at the DTI, said a total of R1.7 billion worth of investments had been created over the past three years in the sector.
The conference is a joint initiative between government (the DTI) and the industry organisation, Business Process Enabling South Africa, for the benefit of the sector.
Recent developments show SA has become a key player in the global BPO market, he added. The DTI also reported that 25 investors who had already benefited from the department's incentive scheme had committed to create 24 871 jobs.
The department expected to spend R2 billion, over a period of three years, on this scheme and aimed to make SA the world's third-biggest BPO centre, after India and Philippines, by 2008. The DTI previously stated it would create 25 000 direct jobs and 75 000 indirect jobs by 2009 - but this has been pushed back to 2010 to ensure realistic target measures.
policy, and government has made a high-profile, long-term commitment to the offshoring industry, resulting in strong investor support and sustainable reductions in costs over the next several years,” noted Zalk.
Future growth
The DTI says SA continues to offer a high quality, low-cost destination for offshoring business processes, in a stable investment environment supported by good infrastructure.
Pumela Salela, director of BPO at the DTI, says the strength and continued growth of local banking, financial and insurance industries would contribute to BPO growth.
“We have successfully managed to attract four of the world's top players in the BPO space within the last three years, namely TeleTech, Aegis, Teleperformance and Genpact,” says Salela.
The DTI says some of its future projects will include the establishment of a BPO park in Port Elizabeth, which will cater for “plug-and-play” facilities, training and development, international investors and SMME incubation. The Coega Development Corporation recently stated the R173 million BPO hub will be completed by March 2010.
Talent development initiatives will be introduced across all levels, say the DTI. Trade and industry minister Rob Davies previously stated the department would introduce new measures and improve its incentive scheme to help the BPO industry absorb challenges such as rising electricity hikes and possible legislative challenges.
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