South Africa is fast becoming a successful emerging offshoring destination for business process outsourcing (BPO) services.
By Lizelle Strydom, MD of CareerBox Africa
Experiencing significant growth in 2024, the market size was valued at approximately $1,85-billion in 2023 and is projected to grow at a rate of 10,1% from 2024 to 2030.
In fact, Deloitte estimates that the local BPO industry could account for 4% of global revenues by 2030. It’s no surprise, then, that the sector has the potential to make a real difference to unemployment rates in South Africa.
Impact sourcing supports the BPO sector’s goals
With an estimated 8,4-million people unemployed and a further 3,2-million discouraged work seekers, there is still much to do to help build a thriving economy for South Africa.
The BPO industry is a beacon of hope for young people who have the enthusiasm, talent and tenacity to thrive when presented with an opportunity. A willingness to learn, a positive outlook and strong communication skills are rated highly for gaining access to the industry.
Young people can enter the job market, gain valuable on-the-job knowledge and receive training while earning a full-time income.
The beauty of the BPO sector lies in how it offers so many people the chance to advance their careers, even when starting from an entry-level position. This is where impact sourcing makes a tangible difference, placing unemployed people into sustainable employment.
The impact sourcing model is well known to be a powerful solution that holds the potential to transform lives and uplift communities. Indeed, research indicates that five to six family members benefit when a person who is below the poverty line or long-term unemployed is placed in a position within the BPO industry.
There are also many benefits for companies who commit to impact sourcing as a recruitment process, including increasing diversity within companies. Female contact centre agents and knowledge workers continued to make up about two-thirds of the South African global business services sector. UN Women has found that companies greatly benefit from increasing employment and leadership opportunities for women, which is shown to increase organisational effectiveness and growth. Impact sourcing has also been shown to deliver an economically secure and loyal workforce.
Impact sourcing has a broad base
However, an erroneous belief is that impact sourcing is strictly the domain of unemployed previously disadvantaged youth who lack further education. What isn’t spoken about as often is those young people who have completed tertiary education, and graduated with a degree, only to find that they can’t secure employment in their chosen field.
Unfortunately, even for those who further their education at a tertiary level, a university or college degree is not a guarantee of employment. New graduates can struggle to find work, with a lack of foundational workplace skills cited as one of the reasons for this. According to the Quarterly Labour Force Survey (QLFS) for the first quarter of 2024, only 9,8% of the employed youth were graduates. Limited educational attainment, as well as social and economic disadvantages, are the primary factors driving elevated rates of unemployment.
Impact sourcing can provide an important bridge for young graduates who are unable to find sustainable employment opportunities through traditional routes. Not only does the impact sourcing process provide these graduates with vital workplace readiness training, but also imparts the soft skills needed to succeed in the workplace, such as mastering emotional intelligence, social skills and communication skills.
Building careers in BPO
While many people still think of the popular stereotype of employees at desks answering customer calls, the BPO sector is far more complex and diverse than this. Just like any other industry, the sector needs a wide range of skills and employees, from HR consultants and marketing experts to IT engineers and technicians, logistics teams, accountants and financial officers, among others.
And, as the industry embraces specialisations to support clients in the financial services, insurance, travel and medical sectors, more technically skilled staff are needed, both as agents and for growth into roles as managers and team leaders. The BPO industry is also geared towards on-the-job training and allows for mobility within the industry, so there is a wide range of options for employees to consider.
One example of this career mobility is CCI South Africa executive Anusha Ramraj. Equipped with a B.Soc.Sci majoring in law, she was nevertheless unable to find a position upon graduation. She accepted a position in the BPO sector as she could see there was tremendous opportunity for someone willing to work hard. From her first position in outbound sales, she moved through the ranks, joining the project management team before becoming enthralled by working with numbers. Today she is the company’s Chief Financial Officer, with a number of qualifications to her name that she accrued while working.
The BPO sector in South Africa isn’t just a thriving industry, it’s a lifeline for many youth, giving them a chance at stable jobs and personal growth. Through impact sourcing, organisations like CareerBox Africa are not only changing individual lives but also making a tangible difference to the country’s economy. As we move forward, it’s essential that we continue to support and expand these efforts, making sure that the BPO sector remains a crucial source of opportunities and empowerment for all South Africans.