Despite economic headwinds, SA’s global business services (GBS) sector is not only one of the fastest growing sectors but is set for rapid growth in the coming year.
This is according to industry body Business Processing Enabling South Africa (BPESA), which reveals government’s economic growth targets can become a reality, as SA sees a steady flow of investment into the GBS sector.
This comes as the industry body readies to the annual BPESA GBS|BPO Conference 2024, in partnership with Harambee Youth Employment Accelerator and the Department of Trade, Industry and Competition, hosted by the Gauteng Provincial Government.
Reshni Singh, CEO at BPESA, comments: “A tough global economy has a positive spinoff 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 GBS sector, we have an incredible opportunity to truly drive Africa to the world and create boundless opportunities for the local market.”
The GBS sector, sometimes referred to as business process outsourcing (BPO), has been identified as the green shoot that can help overcome the country’s unemployment, with the sector targeting500 000 new jobs by 2030.
In Gauteng, the sector is said to be attracting significant foreign direct investment (FDI), having seen more than R617 million in targeted FDI for the province's BGP/BPO sector between 2015 and 2022, states Saki Zamxaka, acting CEO at the Gauteng Growth and Development Agency (GGDA).
“This investment has the potential to create new opportunities in established sectors while boosting the economy in historically disadvantaged communities.
“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.”
“South Africa is a world class delivery destination for the global business services sector – a significant component of our value proposition is the talent pool that South Africa can offer investors and operators in the sector. Our focus on supporting young people, previously excluded from economic opportunity, has meant that many young South African’s are now employed in the sector and the ability for the sector to continue to have impact by providing more employment opportunities and add value through the various service lines to the global market is exciting,” adds Tracey Swart, head: GBS and digital opportunities, opportunity development and incubation at Harambee.
“Coming together as private and public sector, the Gauteng Provincial Government, together with BPESA and Harambee, aim to galvanise the local domestic GBS & BPO sector as a means to ensure we create a platform for international business to confidently invest in the country – a sure way to grow the economy, create youth jobs and support underserved communities. We are proud to serve this sector and look forward to an informative, engaging and action-orientated conference next month,” concludes Singh.
Share