The business process services market has been highlighted in the Industrial Policy Action Plan (IPAP) 2013/2014, announced yesterday by Trade & Industries Minister Rob Davies.
This sector currently provides about 14 000 offshore jobs and the plan is to grow this to 40 000 by 2015.
The business process services and offshoring (BPS&O) market is currently growing at about 8% per year, and was worth about $150-billion in 2012.
Although more than 150 countries are competing for the approximately 1,2-billion jobs available in BPS&O, South Africa is among three global locations offering English-speaking talent at scale, a robust enabling environment, domain skills advantages, cost savings and a first world experience. This BPS&O sector can draw from a potential workforce of 370 000 people.
In addition, it is believed that a broad range of other skilled professionals are available to join the sector.
There is potential to develop the South African BPS&O sector into a regional shared services centre, with significant job creation potential.
According to the IPAP, there are a number of constraints to achieving the desired goals.
These include an insufficient pool of middle managers, limited availability of industry-specific skills, a fragmented approach to industry mobilisation, an insufficiently integrated marketing strategy, poor enforcement of industry standards, lack of market access for local small business, and high telecommunications costs.
Through the IPAP, the DTI has become more proactive in the sector, so far facilitating investments of about R4,1-billion, and focusing attention on skills development.
New initiatives include the roll-out of a Business Process Services incentive programme from 2013/14. This aims to provide an investor-friendly, competitive environment facilitating accelerated entry of key competitor countries to scale up South Africa’s BPS value proposition.
DTI will also invest more in skills development, through the Monyetla Work-Readiness Programme that provides the industry with the skills it requires.
This sector currently provides about 14 000 offshore jobs and the plan is to grow this to 40 000 by 2015.
The business process services and offshoring (BPS&O) market is currently growing at about 8% per year, and was worth about $150-billion in 2012.
Although more than 150 countries are competing for the approximately 1,2-billion jobs available in BPS&O, South Africa is among three global locations offering English-speaking talent at scale, a robust enabling environment, domain skills advantages, cost savings and a first world experience. This BPS&O sector can draw from a potential workforce of 370 000 people.
In addition, it is believed that a broad range of other skilled professionals are available to join the sector.
There is potential to develop the South African BPS&O sector into a regional shared services centre, with significant job creation potential.
According to the IPAP, there are a number of constraints to achieving the desired goals.
These include an insufficient pool of middle managers, limited availability of industry-specific skills, a fragmented approach to industry mobilisation, an insufficiently integrated marketing strategy, poor enforcement of industry standards, lack of market access for local small business, and high telecommunications costs.
Through the IPAP, the DTI has become more proactive in the sector, so far facilitating investments of about R4,1-billion, and focusing attention on skills development.
New initiatives include the roll-out of a Business Process Services incentive programme from 2013/14. This aims to provide an investor-friendly, competitive environment facilitating accelerated entry of key competitor countries to scale up South Africa’s BPS value proposition.
DTI will also invest more in skills development, through the Monyetla Work-Readiness Programme that provides the industry with the skills it requires.