For a long time associated with contact centres and customer service operations, South Africa’s business process outsourcing (BPO) sector is seeing a growing number of international organisations turning to it for a combination of professional expertise, cultural alignment and higher-value support services, gaining ground on traditional competitor markets.
‘We’ve just won a major BPO deal with a multinational oil and gas company, taking work on from Poland, the Philippines and India,’ says Sean Burr, associate director and head of GBS finance and accounting at SoluGrowth.
‘We’re a niche that has only emerged over the last four to five years’
According to outsourcing consultancy Ataraxis Management, South Africa consistently ranks highly for finance and accounting talent quality, language capabilities and cultural compatibility with UK and US businesses.
Growth story
According to Burr, the growth has not happened by accident. ‘I think it’s a collaborative industry programme and approach,’ he says. ‘There’s definitely upside potential and growth earmarked for not just South Africa but Africa in general.’
Industry bodies, government agencies and private providers have worked together to build the country’s reputation internationally. Significant investment has flowed into commercial districts, fibre connectivity and training programmes, while South African providers have become increasingly visible at international conferences and industry events.
‘The country stands out by offering specialised services at competitive rates’
The result is a sector that has evolved well beyond its contact-centre origins. While customer experience outsourcing remains the largest part of the market, professional services outsourcing has emerged as one of the fastest-growing segments.
‘We’re a niche that has only emerged over the last four to five years,’ says Robert Travers, CEO of GCO Partners. ‘And we’re growing rapidly.’
Why South Africa?
‘South Africa is a great choice for outsourcing because it has highly skilled workers, a culture that aligns well with Western businesses, time zones that make working together easier and affordable pricing,’ says Michael Ellett, principal consultant, commerce and industry (South Africa) at Robert Walters. ‘The country stands out by offering specialised services at competitive rates.’
Burr also points to the country’s strong educational foundations and work ethic. ‘We have a good skill base in terms of the universities and a good supply of immediately available candidates,’ he says. ‘South Africans like to work hard, add value and go the extra mile.’
Meanwhile, traditional outsourcing markets have become more expensive and increasingly competitive. ‘Markets like India and the Philippines have matured,’ says Travers. ‘With that maturity comes natural cost inflation and competition for talent.’
As organisations in the UK, US and Europe continue to face recruitment challenges, South Africa is increasingly being viewed as a long-term solution rather than simply a lower-cost alternative. ‘The global shortage of finance and accounting professionals is driving more businesses to outsource these services,’ Ellett says.
Focus on expertise
Perhaps the most significant change is the nature of the work itself. Traditional outsourcing models focused largely on transactional activities such as accounts payable, reconciliations and administrative support. Today’s clients are increasingly seeking strategic support and business expertise.
‘Companies now need people who can work with advanced tools’
Burr believes this marks a fundamental shift in how outsourcing providers create value. ‘It’s not just having bums in seats,’ he says. ‘We transform and enhance back-office processes. It’s actually transformative in nature.’
Rather than simply supplying staff, providers are becoming embedded within client operations, helping to improve processes, implement technology and drive efficiencies. ‘We like to listen to our clients,’ Burr says. ‘We don’t just throw our services at them.’
This increasingly consultative approach mirrors what many finance functions are seeking internally: partners capable of delivering insight and continuous improvement, not just processing transactions.
Travers sees a similar evolution. ‘Our professionals are embedding in the core operations of these businesses,’ he says. ‘We’re not just handling overflow.’
Services in demand now frequently include audit support, management reporting, month-end close activities, technical accounting and compliance support, and providers are increasingly stepping up to supply these.
Talent and technology
The sector’s growth is creating opportunities for finance professionals at all levels. Unlike many developed markets, South Africa continues to produce significant numbers of finance graduates. While this reflects broader economic challenges, it also provides a valuable talent pipeline for a growing industry. ‘It’s relatively seamless to go to market and fill entry-level roles,’ Burr says.
However, competition becomes more intense for experienced professionals and specialist skills. ‘Firms are beginning to face skills shortages as international companies attract top-tier professionals with higher salaries and flexible work options,’ Ellett says.
‘Clients increasingly don’t just want people, they want a partner’
Technology is also reshaping the profession. Routine tasks are increasingly automated, while employers seek professionals who can combine technical expertise with commercial awareness, client relationship skills and technological capability.
‘Companies now need people who can work with advanced tools like software for managing business processes, automating tasks, analysing data and using AI,’ Ellett says.
For outsourcing providers, technology is creating opportunities as much as challenges. ‘We’ve recently invested and hired some BPO professionals who have tech and AI experience,’ Burr says. ‘We’re also sending team members onto dedicated AI training and learnership courses.’
Travers believes AI is accelerating demand for higher-skilled finance professionals. ‘The requirement is for more human judgment, which lends itself well to professional qualifications and contextual understanding,’ he says.
Upside growth
Global talent shortages show little sign of easing, while international businesses continue to seek scalable, high-quality finance and accounting support. ‘I think there’s still upside growth,’ Burr says. ‘I can’t see anything other than that.’
For South Africa, the opportunity increasingly lies not in competing solely on cost, but on expertise, quality and partnership. ‘Clients increasingly don’t just want people,’ Travers says. ‘They want a partner.’
As the industry evolves, that shift may prove to be South Africa’s greatest competitive advantage. No longer simply an outsourcing destination, the country is becoming a strategic extension of finance functions around the world.
