Fusion SA secures R28m BPO&O grant

Trade and Industry Minister Mandisi Mpahlwa on Wednesday night announced the award of a R28 million grant to Fusion Outsourcing Services, a critical endorsement of the company's capacity to lead South Africa's push for a greater share of the global contact centre market.

A wholly-owned subsidiary of the UK-based BGL Group, Fusion Outsourcing handles contact centre operations for its overseas parent company, and is poised for further growth as a result of the Department of Trade and Industry's grant.

“We need grants like this to make us more competitive, and allow us to compete in a global market with the likes of India and the Philippines in providing contact centre solutions,” explained Johann Kunz, Managing Director of Fusion Outsourcing, after the announcement was made. “Ninety percent of the money allocated to us will go to infrastructure development, allowing us to be much more cost-effective.”

That will allow Fusion Outsourcing to take on a greater volume of work from the BGL Group when required, and consider other business opportunities in the future - and do so with a bigger, better-trained team.

As agreed with Dr Ray Ngcobo, during the initial consultations, and as envisaged by the DTI's Industrial Policy framework, the grant is based on Fusion Outsourcing increasing its agent headcount to 600 over a three-year period. “The remaining 10% of the grant will be allocated for staff training and development,” Kunz revealed. “The skills and product training will make our staff more skilled, and together with the infrastructure investments, we will be able to take on more work.”

“In addition to the grant, the BGL Group has invested R140 million over the past three years in Fusion Outsourcing in South Africa,” Kunz added.

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Job opportunities created by Fusion Outsourcing are not for the current South African market, but to support the UK market, and thus adding new workers to the South African economy. “This is in line with the BPO strategy, which focuses on creating 100 000 jobs and bringing $2 billion of foreign exchange into South Africa,” Dr Ngcobo revealed.

The DTI's grant forms part of the department's Business Process Outsourcing (BPO) Government Assistance and Support Programme, which targets South African businesses primed to take advantage of opportunities in the outsourcing field. The BPO project forms an important arm of the DTI's aim, going forward to 2011, of improving South Africa's current account deficit, and maintaining the country's economic growth.

Although not required to be BBBEE compliant, given its status as a foreign-owned company servicing a foreign market, Fusion Outsourcing has attained aggressive targets, with a BBBEE score of 63% and an 80% rating by the end of 2008. But it is the job creation that Fusion Outsourcing is set to provide that is the central reason for the DTI awarding such a substantial grant - and which will provide a catalyst for South Africa winning a greater share of the outsourcing market.

“The benefits for Fusion are infrastructure creation and skills development,” Kunz concluded. “But for South Africa, as well as job creation, this sort of grant allows us to offer compelling value as a contact centre offering - and at a time when the economy is facing a tough ride, this sort of investment is absolutely crucial.”