The global business services (GBS) sector is not only one of the fastest growing sectors in the country but is set to see rapid growth in the coming year – despite an unstable global economy, according to Business Processing Enabling South Africa (BPESA),
The government’s economic growth targets can become a reality as South Africa sees a steady flow of investment into the GBS sector, driven by global organisations seeking alternate, affordable, quality delivery sites with access to capable talent.
“A tough global economy has a positive spin off for the local economy as not only is South Africa currently cited as the third most attractive offshoring destination in the world according to the annual Ryan Strategic Advisory Omnibus Survey due in part to an affordable, quality-driven and scalable global business services (GBS) sector and so, as an industry, we have an incredible opportunity to truly drive Africa to the world and create boundless opportunities for the local market,” says Reshni Singh, CEO of BPESA.
Gauteng Growth and Development Agency acting-CEO Saki Zamxaka adds: “The Gauteng Province is a dynamic hub for the GBS industry, attracting significant foreign direct investment (FDI) that not only promises job creation but also brings far-reaching social and economic benefits. This investment has the potential to create new opportunities in established sectors while boosting the economy in historically disadvantaged communities.
“Between 2015 and 2022, Gauteng has seen more than R617-million in targeted FDI for the province’s BGP/BPO sector. In 2023, the GGDA played a vital facilitation role for companies like Merchants, Redial, Dash and Foursquare.
“By working together, government and industry can collaborate, innovate, and unlock the vast potential Gauteng holds as a premier offshore destination.”
The annual BPESA GBS|BPO conference will take place at Kyalami from 12 to 14 November 2024.
Akash Maheshwari, co-founder and chief technology officer of India’s largest employee commute platform MoveInSync, and a Platinum sponsor for this year’s conference, says: “There’s no doubt that in the GBS sector, people are front and centre. Value creation and employee wellbeing is paramount, and we can use digital technology to achieve it.
“The South African GBS sector is currently at $2-billio market size and is growing at 9% year-on-year. Transport cost, which is 20% of an entry-level executive’s salary, is the second highest cost after salary for the GBS. This combined with safety & security concerns are an impediment to the growth of the GBS sector.”