South Africa has caught the global call centre fever and is capitalising on a trend that has seen international companies, particularly UK and US-based firms, outsourcing their labour intensive call centres (telephonic customer interface hubs) to countries that can provide inexpensive, quality alternatives.
In an era where information technology is reaching for the stars, it does not matter where in the physical world a call centre is located. For the consumer, it is just a local telephone call away.
Currently popular destinations for call centre outsourcing are countries such as India, Malaysia, the Philippines and Ireland, but early signs of interest in South Africa as a quality alternative are being internationally recognised. A marketing campaign driven by Trade and Industry Minister Alec Irwin and his department has put South Africa on the call centre map.
Speaking at a recent Dimension Data conference, Angelo Manzoni, director of ICT and Electronics at Trade & Investment South Africa, a division of the Department of Trade and Industry, said that the potential for business process outsourcing (BPO) globally is growing strongly.
“In 2000, the BPO market was worth almost $115-billion. This is predicted to grow to $178,5-billion by 2005. US companies, which represent the largest BPO market at present with half of the global spend, are expected to spend more than $17,6-billion on offshore outsourcing in 2005. This represents massive growth potential for South Africa.”
Manzoni estimates that the spin-off of such ventures for the country can be translated into 100 000 direct jobs over the next five years. The multiplier effect from job creation on other sectors of the economy is exponential.
Manzoni cites banking group Absa’s current engagement with TransUnion, the international business intelligence and credit rating bureau head-quartered in the USA as a good example of big business leveraging their assets more effectively by providing outsourced call centre services to US and UK organisations.
Says Manzoni: “Absa’s pilot project addressed issues around telecommunications, staff availability, sales and service orientation and demonstrated that South Africa is poised to service this market more effectively than ever before.
“Most importantly, the pilot exceeded the client’s expectations in terms of the business results that were agreed upon.”
Manzoni adds: “Absa’s success is helping us to market South Africa to the world. South Africa is the perfect contact centre outsource location when compared to our global competitors and we just need to get the message out.
“Several factors are to our benefit,” says Manzoni. “Our favourable exchange rate is a huge advantage. We are politically stable; have a low staff attrition rate of between five and 10%; a reliable first world telecommunications and IT infrastructure with high levels of reinforcement in business districts; and a number of proven world- class contact centres such as Absa’s.
Another advantage is that South Africa offers time zone compatibility for Europe and 24/7 availability for the US.
“We also have the capacity,” says Manzoni. “There are approximately 79 00 trained employees working in call centres in the country. This considerable workforce is larger than the total numbers employed at other call centre destinations such as Ireland.
“The average number of seats in a South African call centre is 165, which is greater than that of any EU [European Union] country but is still only a fraction of the capacity of Absa’s call centre, a 1 450-seater. On average, South African call centres are twice as big as their German counterparts and two-thirds larger than those located in Britain or France. With foreign investment we expect this capacity to grow substantially.”
Manzoni says that Absa’s lead in the area is a good example of big business thinking laterally and creatively to draw in the business.
Absa’s managing executive for e-channels, Alfie Naidoo rejects the notion that getting involved in third party outsourcing takes the eye off the Absa ball. “For Absa, call centre outsourcing fits with the company’s core strategy of diversifying our income streams and playing a meaningful role in job creation and skills development.”
Says Manzoni: “By big businesses coming together — such as Absa, Telkom (which is assisting by offering competitive telecoms solutions) and Didata (with the technical expertise) — South Africa is able to make its mark as a call centre location to be reckoned with!” – I-Net Bridge