Africa BPS Technology

Outsourcing is good for job creation in South Africa

The rise of the ‘as-a-service’ economy

South Africa has identified BPO/Outsourcing (Business Process Outsourcing) as an enabler for economic and social growth. Taking examples from countries such as India and Philippines where the industry has had huge success, South Africa is progressing well towards developing its currently nascent BPO/Outsourcing industry.

There is always a question in the public domain whether outsourcing creates jobs or destroys them. A simplistic and locally focused perspective will look at outsourcing in isolation and call the movement of jobs from a company to a local outsourcing provider as a loss of jobs. For many companies to survive and continue to employ some people, they need to drive efficiencies and continuously improve their manual ways of doing business.

Statistically, there are more employees that get retrenched annually because of company failures (mainly where the revenues cannot cover the overheads of that company), than job losses caused by efficiencies through outsourcing. Even trade unions that are more vocal against outsourcing, have asked the question: is it better to retain 100% of company employees for a short while than to sacrifice 15% of employees in order to keep 75% of them through to retirement? Click here for the outsourcing is good full report.


Sandile Gwala
Managing Partner: Business-Process-as-a-Service
Tel: +2711 209 6899

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