South Africa’s business process outsourcing (BPO) sector created 6 018 new jobs countrywide between October and December 2023. This is according to industry body Business Process Enabling South Africa (BPESA), which states that 39% these jobs were in KwaZulu-Natal (KZN). In July 2023, it was reported the sector contributed around R1.
3 billion to the country's export revenue, says BPESA. Additionally, the KZN South Coast has emerged as a top destination for growth and investment, it notes, with BPO operators looking for alternative tier two locations closer to the talent pool, with reduced property costs. “The KZN South Coast has beautiful tourist towns; stable, warm year-round weather; and a pleasing landscape that makes it a great destination from which to operate,” explains Reshni Singh, CEO of BPESA.
“There is a very active community ensuring maintenance and upkeep, with businesses and citizens working effectively together to ensure sustained operations. The property sector is driving a lot of the activity, with the area open to business and growth.” Compounded by a weak economy, SA’s joblessness has continued to rise.
The official unemployment rate stood at 32.9% in the first quarter this year. Youth aged 15-34 years remain vulnerable in the labour market, with the rate of unemployed youth increasing to 45.
5% during the period under review. The BPO sector, sometimes referred to as the global business services (GBS) sector, has been identified as the green shoo.