South Africa: A Premier Destination for Global Business Services
South Africa continues to be a global powerhouse in the BPO sector, offering an exceptional blend of strategic advantages that make it a compelling destination for international offshoring.
The GBS/BPO sector in South Africa has seen transformative growth in recent years, tripling its workforce from 65,000 in 2019 to 150,000 in 2024 and increasing market revenue from USD 1.04 billion to an impressive USD 2.91 billion during the same period.
The sector’s remarkable growth trajectory underscores the trust placed in South Africa by global players who recognise the country’s business-friendly environment, exceptional talent, and infrastructure.
The UK remains South Africa’s largest source market for global business services delivery, with a 55% share in terms of headcount. The US market has grown rapidly, with 33% of globally focused workers servicing that market, up from just 1% in 2019. Australia and Europe – mainly Germany, France and Netherlands - are also important source markets for the sector.
“We have a unique blend of cost-effectiveness, talent and infrastructure and a proven track record of success, competitiveness and maturity in this market. These are attributes that keep attracting international organisations to our shores,” says Angela Kays, Investment Promotion and Investor Relations lead at BPESA, the national industry body for the GBS sector in South Africa.
The GBS/BPO sector’s commitment to consistent job creation has set ambitious goals to create 500,000 cumulative employment opportunities by 2030, with a focus on inclusive growth, youth empowerment and sustainability. In fact, South Africa is a leader in impact sourcing, a proven approach that has seen companies boosting competitiveness while driving positive business and social outcomes. The initiative, which actively recruits individuals from marginalised communities, is offering life-changing employment to young South Africans from low-income backgrounds.
Strategic advantages that set South Africa apart
South Africa is renowned for cost-effective solutions, delivering 55-65% cost savings over source geographies such as Dallas (US), Manchester (UK), and Sydney (Australia).
Cost-effectiveness is paired with access to a large, young, and highly trainable workforce fluent in English, with neutral accents and strong empathy levels.
While contact centres remain the largest employers, the sector also benefits from an exceptional pool of multilingual, highly skilled professionals trained in areas such as finance and accounting, back-office processing and online tutoring, along with digital and ITO services.
The country’s GBS sector has matured into a low-risk investment destination, thanks to its competitiveness and ability to deliver consistent results. Additionally, geographical diversity adds to its appeal, with offshoring hubs like Cape Town, Durban, Johannesburg, Tshwane, East London, and Gqeberha providing a steady supply of entry-level talent and fostering workforce development.
The sector has strong government support at national, regional, and sectoral levels. Its competitiveness continues to be enhanced through various incentives programmes under the Department of Trade, Industry and Competition (the dtic), through sector-specific incentives as well as incentives for special economic zones.
International organisations are increasingly recognising the strength of South Africa’s infrastructure and its ability to adapt to changing global demands. Many global and regional companies have set up or expanded their operations in the country; these companies represent a variety of industries, such as technology and communications, financial services, legal and healthcare. This has created a positive feedback loop, reducing perceived market risk for new entrants.
GenAI adoption on the up and up
GenAI is transforming how South Africa tackles complex challenges, creating opportunities for innovation across diverse industries with solutions to enhance compliance, security, customer experience, and process innovation.
The technology is enabling businesses to automate processes, generate insights from large datasets, and personalize customer experiences at scale.
While many organisations are in the early stages of exploring GenAI, forward-looking companies are leveraging advanced cloud and on-premises AI solutions to gain a competitive edge.
GenAI is already beginning to impact sectors like media and entertainment, BFSI (banking, financial services, and insurance), healthcare, and telecommunications, driving innovation and operational efficiency.
“Besides the more obvious areas such as personalised omnichannel support and to deliver seamless customer experiences across platforms, and the use of chatbots to streamline processes, we’re seeing GenAI being used to create regulatory reports, combat fraud and improve risk management,” says Kays.
The country’s track record of successful partnerships has reduced perceived market risks for newcomers, further reinforcing South Africa’s position as a reliable offshoring destination.
With strong government and private sector support, favourable business conditions, and a skilled, empathetic workforce, South Africa’s GBS industry is proving its mettle on the global stage—ensuring the country remains a preferred destination for outsourced services worldwide.
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Notes to Editors
IMPACT IN ACTION – South Africa’s GBS Value Proposition Highlights
Infrastructure and enabling environment
One of the best ICT infrastructures in Africa, enabling seamless global connectivity
Global contact centre standards (ISO 18295) are based on South African best practices
Strong government support at national, regional, and sectoral levels
Mature industry and value-driven growth
Expertise in voice, omnichannel CX, and complex process management, with a shift towards tech-enabled, high-value services
Deep domain knowledge in financial services
Evolving capabilities in next-generation solutions such as, AI, ML, big data & analytics, cloud, cybersecurity
People prowess
Access to a large, young, and highly trainable workforce fluent in English, with neutral accents and strong empathy levels
Deep-rooted cultural affinity with the UK, US, and Australia, fostering superior customer interactions
A leader in impact sourcing, a proven approach that boosts competitiveness while driving positive business and social outcomes
Assured service excellence
Consistently achieves high customer satisfaction (CSAT) and NPS scores, outperforming peer locations in managing complex interactions and sensitive customer cases
Recognised for high empathy service delivery, excelling in customer journey management and first-call resolution rates
A strong focus on omnichannel support, AI driven automation, and predictive analytics to enhance customer engagement
Cost arbitrage and business advantage
55-65% cost savings over source geographies such as Dallas (US), Manchester (UK), and Sydney (Australia)
Competitive government incentives further reduce operational expenses by 7-10%
Flexible Tier 1 and Tier 2 city options to optimise cost-effectiveness without compromising service quality
Tactical advantage
Provides strategic access to the African continent through a regional GBS hub-and-spoke delivery model
Enables businesses to tap into Africa’s rapidly growing markets, unlocking new revenue opportunities and scalability
A resilient and future-ready business environment, fostering long-term growth and global service excellence.
Source: South Africa’s GBS Value Proposition: Executive Summary, Everest Group, 2025