The global business services (GBS) sector has added 8 847 jobs between January and June this year – contributing $142-million to South Africa’s export revenue – according to BPESA’s latest quarterly GBS Sector Job Creation Report.
What’s more, the report adds, 60% of these jobs are empowerment positions – with 88% of these new jobs going to the youth of the country.
“The recent mid-term budget delivered by the Minister of Finance positioned economic recovery, growth, and job creation as three key focus areas and, no doubt, as a sector we are attuned and well on track to supporting these critical objectives,” says Reshni Singh, CEO at BPESA. “But more importantly, we are driving up job creation in areas where it matters most – underserved communities and the youth – which is critical to levelling the playing fields in the local market and ensuring we prime the country for further foreign direct investment.”
As the third most attractive offshoring destination in the world, the GBS sector presents key opportunities for local growth – underpinned by stimulating demand for jobs through investment, facilitating the sustainable supply of digital skills, and stimulating infrastructure. The GBS sector is one of the fastest growing sectors in the country and a priority sector for government.
“In fact, so much so that we partnered with the Department of Trade, Industry and Competition (the dtic) & Harambee Youth employment Accelerator to co-create a sector masterplan which aims to create 500 000 jobs by 2030,” Singh says. “This masterplan is a national priority and part of the country’s growth strategy which we are proud to support and, along with our industry community and member stakeholders, collectively drive.”
Government continues to reiterate the importance of prioritising key sectors such as utilities and energy as a means to bolster economic growth and transformation, and the report has demonstrated the close alignment of these priorities to that of global markets. The biggest international sectors being serviced from South Africa are energy and utilities at 30% of new jobs, followed closely by Insurance at 20%, and Retail & eCommerce at 14%.
“These sectors are all heavily reliant on digital skills and so, for the next few years, attention and investment into growing such skills will be key – especially when it comes to finding the balance between technical and soft skills in an AI-driven world,” says Singh. “Finding new ways to use technology to continue to deliver unique customer experience while balancing the continual data security threats we are presented with remains key in the GBS sector. In our upcoming conference, we aim to address this with industry while collectively identifying solutions to these changing workplace demands.”
The report further shows that investment from the UK and US markets into the GBS sector are leading, demonstrating how the South African market is not only recovering well as an investment destination through the provision of viable, alternate, scalable services and support, but continues to be recognised as a preferred offshore delivery location for these markets.
“Our goal is to move beyond boundaries, bringing the world to Africa through limitless opportunities and sound global collaboration,” says Singh. “To do this, we continually need to ensure we are engaging the amazing available talent, supporting the creation of transferable skills, and encouraging demand with local supply.
“But similarly, we need to ensure that we are reskilling, upskilling, and future skilling our current workforce and encouraging the continual adoption of inclusive hiring through social impact initiatives which offer employment, career growth, and lifelong learning opportunities if we hope to make a difference,” Singh continues. “Our partnership with the Gauteng Province is centred on this – stimulating demand, encouraging skills engagement, and amplifying their focused journey towards building out the township economy with the intention of ’taking jobs to the people.”
Through tangible job creation, he adds, BPESA will continue to drive foreign direct investment via the GBS sector which, in turn, will not only bolster economic stabilisation and activity, but play a vital role in youth job creation and ongoing skills development.
“We are on a mission to improve the lives of South Africans while ensuring South Africa remains a desirable, key investment destination,” says Singh. “By partnering with government and the private sector we are focused on co-creation and collaboration in critical areas that will best serve the sector and country at large.”