Subscribe
  • Home
  • /
  • CX
  • /
  • SA a favoured offshoring destination

SA a favoured offshoring destination

Staff Writer
By Staff Writer, ITWeb
Johannesburg, 10 Jul 2013

Gartner research ranks SA as one of its top 30 software development outsourcing destinations.

Greg Vercellotti, executive director at Dariel Solutions, agrees, noting that SA is increasingly becoming a favoured international location for business process outsourcing (BPO) and offshoring.

"Information technology (IT) outsourcing is, indeed, a growing business in South Africa. We have a diverse local market, first world know-how and a developing country environment that makes it ideal to test new models and drive innovation," says Vercellotti.

"IT outsourcing makes up a large portion of the IT services market, and is driven largely by the need to reduce operational costs and support growth strategies for expansion - and this is key for businesses in South Africa."

While there are those opposed to outsourcing, there are many who laud its advantages, which include the favourable exchange rate, high rates of English fluency and a broad base of management and service provider expertise, he says. Disadvantages focus mainly around loss of control over the process, says Vercellotti, which need not be a factor if open lines of communication and active participation by the client are achieved.

"Ultimately, the decision to do partial outsourcing, majority outsourcing (over 80% of IT is outsourced) or majority insourcing (over 80% of IT is kept inhouse) is a personal one," adds Vercellotti.

"Businesses need to carefully outline their goals and relay this information to the IT company they decide to outsource to. Choosing a company that has a long-standing record in the South African market as a reputable and reliable provider is very important,"

It is critical that when choosing an IT outsourcing partner, you familiarise yourself with their business model and modus operandi, he concludes. "By aligning yourself with a company that has common philosophies and goals, you are more likely to create a sustainable relationship that results in mutual benefits and really showcases South Africa as the outsourcing destination of choice."

Share