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