South African youth and women lead when it comes to the workforce of the country’s global business services (GBS) sector, also known as business process outsourcing (BPO).
From January to June, SA’s youth accounted for 89% of the new jobs in the GBS sector, says Reshni Singh, CEO of industry body Business Process Enabling South Africa (BPESA).
This, according to Singh, amounts to 9 072 people employed and upskilled during this time.
Singh’s comments come ahead of the annual GBS Investor Conference and BPESA Alchemy Awards, taking place from 8 to 10 November in Umhlanga, KwaZulu-Natal.
“We’re looking for solutions to our youth unemployment and economic challenges, and this conference provides just that,” she comments.
“South Africa was recognised as the world’s preferred location for customer experience services in 2021 and 2022, and through the South Africa annual Investor Conference and BPESA Alchemy Awards, we want to continue this positive trajectory and grow the sector even further.”
Exacerbated by COVID-19, SA’s joblessness has escalated at alarming rates, and youth remain vulnerable in the labour market, with an unemployment rate higher than the national average.
The official unemployment rate was 33.9% in the second quarter of 2022, according to Stats SA, with the youth unemployment rate at 46.5%.
Given the rise in unemployment, SA’s BPO sector has been tipped as a catalyst in the fight against joblessness, particularly among local youth.
A McKinsey report, titled “Driving economic recovery in South Africa's BPO industry”, shows the global BPO industry is valued at $163 billion and is expected to grow to $183 billion by 2023.
In SA, notes the McKinsey report, the international GBS sector added 65 385 jobs to the economy between 2018 and March 2022, generating over a $1 trillion in export revenue.
In addition to employing youth, the sector focuses on empowering those from previously disadvantaged communities.
Priority hire is given to those from poor households or communities with low levels of employment, with 2 000 inclusive hires made from January to June 2022, according to BPESA.
“Ethnic diversity is a central tenet of the South African GBS sector, and women contact centre agents make up two-thirds of the South African GBS sector – at 67%.”
Hosted by BPESA, the GBS Investor Conference and BPESA Alchemy Awards aim to showcase the gains the sector is making in the local economy and addressing joblessness.
The event is organised in partnership with national government, the Department of Trade Industry and Competition, InvestSA and social partner Harambee Youth Employment Accelerator.
Regional host partners include the KZN Department of Economic Development, Tourism and Environmental Affairs, Trade and Investment KZN, Invest Durban and eThekwini Municipality.
Other sponsors include TransUnion, domestically-based international BPO operator iContact and speech analytics firm Callbi.
During the three-day engagement, the conference will offer several opportunities for domestic stakeholders and international investors to convene, learn, co-create and discover the benefits South Africa offers as an attractive offshore location.