Business process outsourcing (BPO) is a key industry in furthering SA`s economic growth (alongside agriculture and tourism), but the cost of telephony is inhibiting the industry, according to deputy president Phumzile Mlambo-Ngcuka.
She was speaking at the opening of IBM SA`s Integrated Delivery Centre (IDC) in Sandton yesterday. The IDC aims to provide IT services support to over 250 IBM clients across Europe, SA and the US.
The key challenges facing SA in the BPO industry are skills development, IT infrastructure and the cost of telecoms, said Mlambo-Ngcuka in her address.
Perceptions
The biggest challenge SA faces in truly becoming part of the "global environment" is the wrong perceptions that people have about the country, said Mark Harris, CEO of IBM SA.
Encouraging BPO in SA and providing good service helps change such perceptions, he noted.
Addressing Mlambo-Ngcuka personally during his address, he urged government to invest in infrastructure necessary for BPO and encourage businesses in this sector.
"BPO is one of the sectors where we will invest a lot of energy and resources," she said. "We need to move faster on the issue of telephony costs."
Skills development
IBM revealed plans to spend R24 million on training programmes over the next 12 months, to enhance the skills of recent and formerly unemployed graduates in internship positions at the IDC.
"The fact that IBM aims to create 900 jobs in 2006 is music to our ears - we`re excited that IBM has partnered with the government in the employment of previously-unemployed graduates," said the deputy president.
The IDC is not simply about improved service and faster support response times, but about bringing together knowledge from all over the world, said Joe Dzaluk, VP for IBM`s integrated technology delivery across Europe.
"We see IBM continuing to work closely with government to ensure the IDC remains a platform for skills development and helping small enterprises," he noted.
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