BPO sector unlikely to reach 500 000 jobs target

Despite the South African business process outsourcing (BPO) sector being seen as a beacon of youth employment, industry body Business Process Enabling South Africa (BPESA) predicts it may fall short of the 500,000 cumulative job target by 2030. This assessment comes from Reshni Singh, CEO of BPESA, speaking during a recent media engagement with ITWeb.

The target, originally set in the 2021 master plan, reflected the sector's crucial role in economic reconstruction and recovery following the COVID-19 pandemic. During the pandemic, the GBS sector was one of the few that added jobs rather than shedding them. However, Singh believes a more accurate projection is an estimated 150,000 additional jobs between now and 2030, rather than the hoped-for 500,000.

The master plan includes four scenarios, with the highest growth scenario projecting 500,000 jobs. Singh noted that current performance currently sits between the expanded and accelerated scenarios. She attributed this discrepancy to the evolving landscape of the GBS industry, driven by factors such as artificial intelligence integration, changing client demands, and the changing nature of required roles.

While the sector has created 200,000 jobs since 2006, Singh emphasized the need to adjust job growth projections. She acknowledged the sector's evolution, noting that it has expanded beyond traditional voice BPO activities to encompass professional services, digital services, and information technology outsourcing. However, Singh cautioned that complex roles, while in demand post-pandemic, may not scale, further limiting the sector's potential for job growth.

South Africa's key offshore market for GBS services remains the UK, with 60% of the local workforce serving UK clients. The US and Australia are the second-largest source markets, followed by other parts of Europe. The GBS master plan, accredited by the Department of Trade, Industry and Competition, is a national strategy aimed at positioning South Africa as a premier offshore destination for customer experience and digital services.