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

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Chapter3International ContactCentre ServicesA12Driversfor Use ofSouth Africafor ContactCentreServicesBusiness Challenges Faced and Drivers for Offshoring customer servicesExhibit III-1 shows, on the basis of the organisations interviewed by NelsonHall, the currentprofile of sectors using South African contact centre services for international customer service.Exhibit III-1Profile of Sectors Using South African Contact Centre ServicesSector Proportion (%)Insurance 25Telecoms/ISPs 25Banking and other financial services 19Online retailing/home shopping 13Media 6High-Tech 6Utilities 6Although telecoms providers are traditionally a key sector for contact centre services andthese are highly represented in the sample, given the high level of financial services expertiseresident in Cape Town and Johannesburg, it is not surprising that the financial services sectorshows up strongly even in the contact centre services market.
International Contact Centre ServicesNelsonHallAnother key sector increasingly using South Africa, and likely to grow significantly in terms of numbers of seatsover the next year as Amazon expands its operations in Cape Town, is the online retailing and home shopping sector.Overall organisations offshoring contact centre services to South Africa are not doing so in order to achievemaximum customer service cost reduction. Instead, they are typically looking for an “onshore-equivalent” customerservice but lack the necessary capacity onshore and/or are endeavouring to achieve onshore-equivalence at a lowerprice point. Typically these organisations are “moving” service delivery from onshore but in some instances they arereacting against the standard of customer service from other offshore locations.The principal business challenges faced by these organisations and their drivers for considering offshoring toSouth Africa were in order of importance:• Need to scale to support business growth• Lack of onshore capacity/difficulty in recruiting onshore• Need to match onshore customer experience at lower price point• Brand protection at lower price point• Disillusion with customer service delivery from another offshore location• Experiencing high attrition onshore3ChapterInternational Services Delivered and WhyExhibit III-2 shows the profile of sectors using South Africa for international customer service by current number of seats.Exhibit III-2Profile of Sectors Using South African Contact Centre Services by Number of SeatsSector Proportion (%)Telecoms/ISPs 38Online retailing/home shopping 25Insurance 12Utilities 10Banking and other financial services 8High-Tech 4Media 3In terms of volume the dominant sectors at present are telecoms/ISPs and online retailing/home shopping.In addition to English-language work, which currently accounts for approximately 85% of international contactcentre services from South Africa, South Africa also provides European language customer service, with for exampleLufthansa and Amazon both providing German language customer service from South Africa.NelsonHall 201113
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Analysis of South Africa as a BPO Delivery Location - Business Trust

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