Shared services as an export commodity for South Africa

Abstract

Abstract Unemployment is growing problem in South Africa, with a significant share of unemployment within the youth segment as indicated by StatsSA (2018) and World Bank (2017). This challenge has had a resultant impact on economic growth, placing South Africa in junk status with the ratings agencies. Considering these challenges, this paper explores the opportunities that exist within the business shared services segment, looking at South Africa’s value proposition, its competitive advantage, and skill requirements to position it as a hub for the export of shared services. In so doing, the author seeks to create awareness of business shared services as a sector that contributes to employment and economic growth in South Africa. Business shared services is a model for business optimization, providing back office services to large corporations, particularly multinationals and is predominantly an employer of individuals that fall within the youth age range. A qualitative study using Anglo American shared service center as a case site was conducted, interviewing heads of departments and subject matter experts within the organisation to provide insight into the value proposition and competitive advantage of business shared services in the South African context. The research indicated valuable insights into South Africa’s value proposition as well as advantages and disadvantages to the countries competitive advantage. Some of the contributing factors to South Africa’s value proposition highlighted in the study were English proficiency, technological ability and time zone. Education, political instability and corruption were cited as areas of focus. Moreover, the paper looked at skills requirements in an evolving shared services environment bringing attention digital transformation and the areas of skills development that South Africa needs to pay attention to.