Business Processing Outsourcing (BPO) - Business Trust

Business Processing Outsourcing (BPO)
Sector Support Programme
Situational analysis of the
quantum and impact of current training in the BPO sector in South Africa
Request for proposals
RFP No BT/BPO/TD/030208
RFP Title
Issued by
Issue Date 3 February 2008
Closing date 22 February 2008
Review date 29 February 2008
Contract date 7 March 2008
Completion date 7 June 2008
RFP Number
BT/BPO/TD/030208
1. Request for proposals
Monyetla Work Readiness Inception Programme
Business Trust
Agencies are invited to submit proposals to the Business Trust for research into the current
supply and impact of publicly- and privately-funded training for the BPO sector 1 .
Proposals from suitably-qualified agencies should be received by the Business Trust by 12h00
on 22 February 2008.
2. Background
The rapidly expanding global market of business processes that are outsourced, and
increasingly located off-shore, presents an opportunity to create up to 100,000 jobs over the
next four years by encouraging the location of this business in South Africa.
Capitalising on this opportunity has been identified as a priority by the Accelerated and Shared
Growth Initiative for South Africa (Asgi SA) and the Cabinet approved a comprehensive
programme of Government Assistance and Support for the sector in December 2006.
In order to support the development of the sector, the BPO Sector Support Programme is
designed to:
Support the effective marketing of SA as a competitive BPO&O destination;
Develop and deepen a pool of internationally competitive talent;
Create an enabling environment of infrastructure and incentives;
Assure the quality of the SA offering;
Mobilise industry to be increasingly competitive in the promotion of South
Africa as a centre for value based off-shoring; and
Optimise the impact on the second economy.
1 The BPO sector forms part of the greater services industry. It is made up of eight sub-sectors: IT and
Technical Services; Call Centre Functions; Financial Accounting and Administration; Human Resource
Functions; Data Conversion, Entry and Scanning; Administration and Maintenance; Insurance Industry
Functions; and Website Design and Development.

3. Talent Development for South African BPO
The availability of work-ready talent is one of the key factors considered by prospective
investors. Cross-sector skills research led to the formulation of a skills development strategy
with three objectives for focused, rapid development of talent for the BPO sector:
To increase the pool of entry-level employable people through the Monyetla Work Readiness
Programme.
To accelerate the development of home-grown supervisors and managers by developing
supervisors, team leaders & managers through the levy grant and tax incentives system.
To ensure the ongoing building of a globally competitive talent pool by encouraging life-long
learning and training through the National Skills Development Strategy.
There are currently a number of different approaches to talent development within South Africa, both
publicly and privately funded. To date, a comprehensive situational analysis of the current approach to,
quantum and impact of training has not been researched.
The purpose of the proposed situational analysis is to gather, collate and analyse information on the
scope, scale and impact of current talent development approaches for the BPO sector in South Africa.
4. Sectors to be probed
At least the following sectors should be probed to establish which approaches to talent development are
currently being used, and what impact this training and development approach may have achieved.
Publicly-funded BPO Talent Development approaches
1. National Skills Fund: Funding to Provincial Governments to support the implementation of their
PGDS
2. National Skills Fund: Funding to Provincial Departments of Labour for BPO
3. National Skills Fund: Funding channelled through Department of Trade & Industry as part of
GAS programme, and formerly SMED programme
4. National Skills Fund: Monyetla Programme
5. Services SETA: learnerships and skills programmes
6. Umsobomvu Youth Fund: Monyetla Programme
7. Local government initiatives, Cities of Johannesburg, Cape Town and Durban
8. South African Revenue Service
9. Tourism information bodies
Privately-funded BPO Talent Development approaches
Pirvately-funded BPO includes both inbound and outbound-focused entities.
privately-funded BPO Talent Development sectors are to be probed:
At least the following
Airlines
Banking
Car hire
Computershare
Credit Management
Health care
Hotels
IT and IT support

Marketing
Non-life insurance
Life insurance
Software and computer services
Telephony
Travel
Wholesale and retail
5. Issues to be probed
5.1. Descriptive and quantitative issues
The research should provide information on at least the following:
Is the BPO entity for which training has been provided an outsourcer, captive or a combination of both
In which province/s is the entity active in BPO
How many seats does the entity have
To which SETA does the entity pay its skills development levy
To what extent does the entity use the levy-grant system
Is training nationally or internationally accredited (eg Edexcel, NQF, proprietary)
Is certification/accreditation gained by successful learners Describe nature of certification.
Are accredited training providers used or is the employer accredited as a trainer
Is training assessed for competence, and, if so, how Or is only attendance recorded
At which levels is training offered (entry level, advanced agent training, supervisory, management)
What is the duration of the training at each level
How many people at each level have been trained in 2005, 2006 and 2007
How many people at each level were found competent/passed the training
5.2. Impact and qualitative issues
The research should cover at least the following:
What relationship was discerned between training and productivity
Were learners/staff employed on conclusion of the training If so, how many
Were trained staff promoted Is there career path development
Were trained staff retained by the company
Did staff who leave remain within the BPO sector
Was cost-effectiveness measured and, if so, how
Recommendations by employers
Recommendations by the research agency
6. Proposed roll out timelines and actions
Action
Date
RFP advertised in Sunday Times & BT website 3 February 2008
Proposals due 22 February 2008
Adjudication of proposals 29 March 2008
Contract, including deliverables, prepared 7 March 2008
Research commences 15 March 2008
Progress report 1 and meeting to discuss 30 April 2008
Progress report 2 and meeting to discuss 31 May 2008
Final report presented 30 June 2008

7. Proposals
Proposals are requested for the design and implementation of the research project.
Four hard copies of proposals should be delivered by 12h00 on 22 February 2008 to:
Business Trust – attention Dikgapha Khumalo
3rd floor Building 13
The Woodlands
Woodlands Drive
Woodmead
Johannesburg
One electronic copy should be submitted to Dikgapha@btrust.org.za by 12h00 on 22 February 2008.
Proposals, which may not exceed 30 pages, including annexures, should contain the following
information:
7.1 Summary of offering
Proposals should specify the research methodology and tools to be used;
Proposals should clarify the approach to sampling and sample size selected;
Proposals should provide a list of key questions;
Proposals should provide the overall cost of the programme; and
Proposals should detail the timing of the key deliverables.
7.2 Approach
Describe how you understand the project which is to be implemented and what its components
are.
Describe your approach to achieving the objectives of the proposed research project.
Set out the core activities and specific actions required to achieve the overall objectives, and
specific objectives, in a project plan.
7.3 Implementing agency:
Describe your agency, including its members and the roles they will play.
Describe the research experience of your agency and provide contactable references.
Provide an assessment of the capacity of your agency.
Describe the manner in which the project implementation will be planned and managed.
Set out the systems for organisation of work, admin, quality control and monitoring.
7.4 Budget:
• Show the budget, broken down into clearly defined line items.
7.5 Project management:
Provide an analysis of key dependencies and risks associated with implementation.
Set out a schedule of key activities, milestones and timing.
Identify actions required of other key stakeholders.

8. Review procedures
This request for a proposal does not constitute an offer to purchase any service. The Business Trust
reserves its rights to accept or reject the proposal and to proceed with the implementation of the
Monyetla Inception Project (or not) with or without the proposer.
Proposals will be assessed in terms of the Business Trust procedures. These may include, at the
discretion of the Trust, the assembly of a review panel to consider short-listed proposals. A preferred
bidder or bidders will be selected on criteria that will include, but not be limited to, price.
9. Contracting arrangements
In respect of successful proposals, contracts will be entered between the Business Trust and the
research agency, which will reduce the successful proposals to contracted deliverables against which
the agency will be required to perform.
10. Payment schedule
Agencies are requested to propose a suitable payment schedule.
11. Pre-requisites
Agencies wishing to submit proposals must provide:
Evidence of at least five years of research experience. List projects completed.
The curriculum vitae of the person who will lead the research project.
A minimum of three contactable references for whom research has been done.
A valid tax clearance certificate