Business process outsourcing in identified financial services sub-sectors: the potential for offshore business flows into South Africa and consequent recommendations for targeted government support

by VAN DER HEIJDEN, T., 2006
Research Report, Employment Growth & Development Initiative, Human Sciences Research Council

Business process outsourcing (BPO) has enormous potential to support economic growth and employment in South Africa. So far, the focus in SA has mainly been on contact centres, where South Africa does not enjoy a comparative advantage. Competitive advantage is more likely to be found in back-office BPO: this paper specifically looks at potential opportunity in asset management BPO and related financial services. The key drivers of this part of the outsourcing market are identified, with discussion on the potential economic benefits, and a detailed assessment of the local and foreign companies currently engaged in BPO operations in South Africa. It reviews the key factors that influence the decision to be based in South Africa and provides an initial assessment of the potential of this segment of the BPO market.