GROWTH OPPORTUNITIES AND CONSTRAINTS IN THE SOUTH AFRICAN BUSINESS PROCESS OUTSOURCING INDUSTRY

Date
2012-10-08
Authors
Allen-Baffoe, Kwamena S.
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Abstract
Globalisation, aided by rapid improvements in technology has given rise to an industry where services can be delivered quickly and cost effectively from remote parts of the world. Driven primarily by the need to reduce costs and to focus on core competencies, organisations are increasingly turning to Business Process Outsourcing (BPO) to deliver these expectations. A multi-billion dollar global industry with projections of significant future growth has created competition amongst countries jostling to position themselves as the destination of choice for organisations looking for an offshore BPO destination. South Africa, which has identified this industry as a key economic sector, has seen its global attractiveness drop in recent years. This study analysed semi-structured interviews using cognitive maps and content analysis to evaluate the perceptions of South Africa’s attractiveness from the perspective of businesses operating in the offshore BPO industry. While South Africa maintains a decisive advantage in the industry for quality voice services, the results show that this advantage is deteriorating as other offshore destinations make inroads into this space by offering better incentives and cost advantages. South Africa needs to take decisive steps to augment its value proposition to remain viable in an ever more competitive BPO market.
Description
MBA thesis - WBS
Keywords
Business processes, Outsourcing, Business process outsourcing
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