Analysis of South Africa as a BPO Delivery Location - Business Trust

BGDN Centrewithin FinancialIndustry-Specificand Back-OfficeServicesWhile approximately 70% of current international BPO service delivery from South Africacomprises contact centre services, there is also a significant level of international service deliveryaround financial industry-specific and back-office services.The majority of these services are banking and insurance industry-specific services, thoughSouth Africa should also be considered as a potential location within an organisation’s globaldelivery network for back-office shared services in areas such as finance and accounting.Examples of services delivered from South Africa in support of financial industry-specificservices and back-office services are shown in Exhibit II-2.Exhibit II-2Industry-Specific and Back-Office Services Delivered from South African by SectorSectorProfile of Services SupportedEnergyOrder taking and customer serviceCredit operationsCoordinating product scheduling and delivery with major clientsWealthLife insuranceInvestment new business supportCustomer data managementMoney collectionNew business capturePremium collectionPolicy administrationClaims processingCommissions handling8As with contact centre services, South Africa remains suited to the more complex handling ofprocesses and customers within these domains, rather than the more basic transaction processing,which is increasingly being automated.For example, CSC uses South Africa as a staging post for the roll-out of life BPO services to its Indianoperations in support of its US life BPO clients and to handle complex parts of the value chain.Similarly both Old Mutual and Discovery are seeking to build global financial services sharedservice centres in South Africa, with both new financial services product development andprocessing being concentrated in South Africa.