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

UK-basedISP/StreamFBackgroundThis UK-based ISP first established a captive contact centre in South Africa with 350-400 personnelapproximately five years ago.In March 2009, this site was acquired by eTelecare along with a 3-year contract to supplyservices to the ISP. eTelecare was subsequently acquired by Stream in November of the same year.Services Delivered from South AfricaThe ISP has 550 FTEs based in Cape Town delivering inbound customer service.Drivers for Use of South AfricaThe ISP launched their broadband service in the UK in April 2006 and needed to significantlyincrease its work force to handle the projected volume of customer contacts.The ISP’s senior management were concerned about the impact of offshored customer serviceon the firm’s brand, but driven by shortages of UK personnel, were persuaded to considerpotential use of India, the Philippines, and South Africa.India was ruled out at an early stage due to the general adverse perception of Indian contactcentres in the UK at the time, and the ISP executives briefly evaluated the Philippines.However, South Africa was fairly rapidly selected on the basis of the following criteria:• The value of the limited time zone differences with the UK• The ease of managing South Africa as a location for a captive. In particular:• The ability to catch overnight flights to and from the UK and not lose a day’s work or sufferfrom jet lag• The fact that Cape Town was perceived to be a “beautiful place” that executives would behappy and prepared to visit• Cultural affinity with the UK and the fact that there are many people in the South Africanbusiness world with UK backgroundsIn addition when executives from the ISP went to visit existing contact centre operations in SouthAfrica, they found:• A “lot of expertise and skills”• That agents didn’t view contact centre employment negatively as they might in the UK, andthat an international connection with the UK was appealing to South African agents.38