Cape Town’s business process outsourcing (BPO) sector now employs 90 000 people across call centres in the city.
This, after the Mother City added more than 10 000 local jobs in one year, from March 2023 to 2024, according to the city.
To mark the latest milestone, mayor Geordin Hill-Lewis and alderman James Vos, mayoral committee member for economic opportunities and asset management, yesterday visited EXL and Teleperformance. The two call centres are said to have made the biggest contributions to job creation in the industry in the last year.
The city also funds CapeBPO, its special purpose vehicle (SPV), to provide skills development in the call centre sector and market Cape Town as an ideal location for BPO businesses.
According to the city, the aim is to create employment, especially for young Capetonians, and stimulate economic growth.
Says Hill-Lewis: “It is fantastic to celebrate the milestone of 10 000 new call centre jobs created in Cape Town in a single year. There are now a record 90 000 people employed in this sector, based on CapeBPO records. This is not only about providing jobs, but also about upskilling and helping young people to better themselves and their future, while contributing to Cape Town’s economy.
“Overall, the BPO sector contributes R21 billion to Cape Town’s economy, and we look forward to welcoming many more new call centres to our city, as we keep growing this sector together with partners.”
With international clients showing interest in SA’s BPO sector, it has been tipped as one of the green shoots that will steer the country’s economic reconstruction and recovery. The country has developed an industry master plan to further bolster the sector.
The global BPO market was valued at $261.9 billion in 2022. South Africa’s BPO sector accounted for 1% of global revenue during the same period, with estimates indicating this will grow to 4% by 2030.
For Cape Town, the BPO sector, which is commonly referred to as the call centre sector, has been earmarked as a priority industry for employment creation. Resultantly, it has launched the Cape Skills and Employment Accelerator project, in partnership with the National Skills Fund, to create employment opportunities for marginalised youth and women.
In addition, CapeBPO runs various initiatives to drive skills development, including the Afterschools programme and Sunday School.
Vos notes Cape Town has become hot property as an internationally sought-after location for BPO businesses and investors.
In addition to Teleperformance and EXL, other BPO companies that have contributed to job creation include Concentrix, WNS, TTEC, Ascensos, IGT Solutions, Boldr Impact, ISON, CCI SA, Foundever, Merchants, A24 Group, Amplify5, iContact, BYC Aqua Solutions, Sourcefit, SA Commercial, Collison SA, Call Force, Global Load Control, Mango 5, Sigma Connected, Ask Osca and Kocho.
“The BPO sector stands as a pillar of foreign direct investment in our city. This makes it absolutely clear that far greater job creation can be achieved all across SA through public-private partnerships that genuinely invest in our communities, as we are doing here in Cape Town. By prioritising this sector, we are not only driving a robust economic environment but also positioning Cape Town as a leading hub for BPO activities on the continent.
“The city will continue to support SPVs such as CapeBPO to help drive skills development, create job opportunities and stimulate economic growth in our city. Our commitment to enhancing infrastructure, streamlining processes and offering training incentives remains steadfast, as we aim to expand the sector's reach and support local talent, ensuring Cape Town remains at the forefront of the global BPO landscape,” concludes Vos.
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