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

Benefits Sought and AchievedA comparison of UK collections performance against like-for-like control groups inSouth Africa and the UK is shown in Exhibit VI-1.Exhibit VI-1Comparison of UK and South Africa Collections PerformanceMetricSouth Africa’s performance compared to the UKAverage 1st payment value 8% betterLiquidation of balance (%) EqualConversion rate upon CWD (%) 1% betterAccordingly, CapQuest has met its initial goal of finding a source of collectionscapability to service UK debtors and at an acceptable rate of attrition. CapQuest’s12-month rolling turnover of agents in South Africa stood at 18.9% for 2010, with12-month rolling sickness levels for 2010 of 1.48%.It should be born in mind that the CapQuest call centre operates a shift patternlate into the evening and inclusive of weekend working.In terms of costs, the cost of an agent in South Africa in support of these services isapproximately 40% of the comparable cost in the UK.While telecoms costs are more expensive in South Africa, the cost of offices isin the range ZAR 70 to ZAR 130 per square meter, giving savings in excess of 90%compared to say offices in the south of England at around £20 per square foot.CapQuest now perceives that South Africa offers:• “Talented and growing workforce with widespread use of English and culturalaffinity to the UK• Excellent aptitude and attitude for collections-environment calling• Willingness to learn permits staff to develop and boost specialist skills• Time zone alignment allows staff to work day and early evening shifts• Developing telecommunications infrastructure• Economic, education and legal system compatible with UK”28