The Independent Communications Authority of South Africa’s (Icasa’s) discussion document on cellphone pricing — due for release on Monday — will also deal with the call-centre industry which the regulator describes as part of its renewed policy imperative.
Addressing a two-day gathering on telecommunications pricing, Icasa councillor Tracy Cohen said one of the renewed imperatives was to continue attracting foreign direct investment as well as becoming a business processing outsourcing (BPO) or call-centre environment hub — but this could only be achieved through a reduction in costs.
If this could be achieved, it would mean that the country would be better able to secure investment prospects as opposed to ”squandering the opportunity”, she said.
While South Africa has several advantages — including the time-zone and English language factors, an affordable labour force and sound business practice — Cohen said these factors alone were not enough to grow foreign investment.
Local BPO firm eQuals said the number of call centres in the country is likely to reach 939 by 2008 with about 100 000 jobs being created over the same period. The firm estimates the current BPO workforce at around 80 000.
The local industry has been losing out to India — also described as a BPO leader — on the back of more affordable telecom costs. The government blamed local operators whose growth was accompanied by excessive retail prices, ”super-profits” and shedding of jobs.
”Increased globalisation has resulted in the requirement to communicate and transmit timeously, vast amounts of data to suppliers, industry customers and international affiliates,” Communications Deputy Minister Ray Padayachie told those representing a plethora of sectors at the colloquium.
”What is very important … is that the services should be available at a cost that does not make it prohibitive to communicate or, as in the case of business, the cost of services should not put them at a competitive disadvantage to firms in other countries.
”The availability of world-class communication services at a reasonably competitive price is what is needed most, for an economy to grow.”
The telecommunications gathering precedes a South African Contact Centre Community (Sacccom) conference which will also touch on the importance of the BPO industry and job creation.
India’s call centre association president Kiran Karnik will share with those attending the event on July 29 how the Asian nation became the industry leader, while outlining the future of the global market from the Indian perspective.
Sacccom CEO Mfanu Mfayela will unveil South Africa’s five-year BPO roadmap at the conference. – I-Net Bridge