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OUTSOURCING TO SOUTH AFRICA
THE BO-SMART ADVANTAGE: SMART BUSINESS OUTSOURCING
BENEFITS OF OUTSOURCING TO SOUTH AFRICA
India and the Philippines have long been touted as favourite destinations for outsourcing anything from customer service to financial back-office work. In recent years, South Africa has emerged as a strong contender in this space. Boasting a large educated and English-speaking talent pool, South Africa has become a popular source of outsourced workforce. A high availability of qualified individuals who are eager to work with global companies, along with cultural and time zone similarities between South Africa and Europe, has driven an increasing number of companies to outsource to South Africa.
Globally, thousands of companies are turning to South Africa as the preferred outsourcing location, thanks to the unique opportunities and value this country offers.
South Africa delivers significant benefits over other outsourcing destinations such as India and the Philippines, and has established itself as a top outsourced workforce provider. The country exhibits a growth rate in the outsourcing sector that far exceeds that of India and the Philippines. Amazon is just one of the large international companies who have recently tapped into South Africa’s potential. The high demand for South African workers comes down to the country’s affordability and its abundance of well-educated individuals. Contact us about outsourcing accountancy or technology, using the links below.
COST EFFECTIVE
One of the biggest reasons we recommend outsourcing to South Africa, is the affordability of the local talent. Labour costs are significantly lower in South Africa than in the UK, US, Canada, and many European countries. This means that companies from these countries can save a huge amount of money through outsourcing. The lower cost of South African workers is due to two main factors, namely, the affordable cost of living and competitive hiring costs. Compared to the above mentioned countries, South Africans experience a significantly lower cost of living. In the UK, for example, everything from rent to groceries is at least sixty percent more expensive than in South Africa. The average South African salary is also much lower than those typically earned for comparable jobs in the UK. South Africa has an abundance of qualified individuals on the lookout for opportunities and willing to accept local market rates. Foreign companies need to spend only a fraction of the cost for a qualified South African employee, compared to the expected salary for a similarly qualified American or Brit. Research indicates that European companies could save between 30% and 50% on staff costs by outsourcing to South Africa. Additionally, the exchange rate is favourable to both parties: a South African can receive a competitive salary, while the foreign employer’s savings on labour costs is amplified by the stronger foreign currency.
SOUTH AFRICA'S CONVENIENT TIME ZONE
The time zone in South Africa is close to that of the UK and Europe, making it the preferred outsourcing destination for many of these countries. Being only 1-2 hours ahead of the UK, depending on UK Daylight saving time, South Africans are able to follow near-typical business hours while working alongside their UK employers. The same holds for South Africans working for European companies. While countries like India or the Philippines have a major time zone mismatch with Europe, South Africa’s time zone enables seamless communication.
NEUTRAL LANGUAGE AND ENGLISH FLUENCY
English is the de facto language of business and government communication in South Africa, and a large majority of degree holders in South Africa completed their course with English as the primary language of teaching. This makes international communication effortless. Furthermore, the South African English accent is easily understood and relatively neutral, making this country a preferred outsourcing destination. Contrary to the high need for accent neutralisation training in other popular outsourcing countries such as India and the Philippines, no such training is necessary for South Africans, who generally already have a neutral accent.
HIGHLY QUALIFIED WORKFORCE
Foreign companies who outsource to South Africa gain access to a highly qualified and affordable workforce. South Africa has globally recognised education institutions that produce a highly skilled and productive workforce. Local universities are often ranked among the top universities globally, and have educated many professionals who have since become global business leaders. The South African Accountancy designation, CA(SA), is recognised by the World Economic Forum, and South Africa has previously been rated the top country in the category of strong auditing and reporting standards.
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South Africans are often overqualified due to limited job opportunities. Thus, for foreign employers, there is a high availability of skilled workers at a fraction of the cost of the European workforce. South Africans also make excellent employees, since many of them are entrepreneurial-minded individuals with problem-solving skills that are squandered in a country with a job shortage. As a result, they're a valuable asset to companies searching for resourceful and hardworking employees.
CULTURAL ALIGNMENT
Outsourced South African staff can be closely matched to your company’s culture. South Africans are better at understanding American and British speech and the intricacies of those cultural norms than most people in other outsourcing locations like India or the Philippines. The large amount of British television and pop culture consumed by South Africans puts them in tune with British culture, resulting in a high cultural compatibility with English colloquialisms. Their close cultural affinity to the UK enables relevant and empathetic engagements and conversations. From a company perspective, you can barely notice a difference between South African and British employees.
DATA PROTECTION
Local South African laws require consumer data protection, to a similar standard as that in the UK. The South African government introduced the Protection of Personal Information Act (POPIA) regulations to protect personal information, and all South African companies and individuals are required to abide by these regulations. Outsourcing work concerning financial or client information to South Africa should cause no data privacy concerns, as South African employees are well versed in data protection and privacy laws.
LARGE TALENT POOL OF QUALIFIED INDIVIDUALS
Given the high unemployment rate and few available opportunities, qualified South Africans are motivated to work when opportunities do arise. Of the over 200,000 new graduates every year, many are left jobless. South Africans are therefore eager for the financial refuge offered by foreign employers. Many South Africans already work for other English-speaking countries, including the UK, Ireland, US, Canada, and New Zealand, while being situated in South Africa. These countries hire the largest percentage of outsourced workers, and are key drivers for the local economy.