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., 2005
Research Report, Employment Growth & Development Initiative, Human Sciences Research Council

“Business process outsourcing (BPO) has been identified to have enormous potential to support economic growth and employment in South Africa. It has been the subject of much attention, research and debate, by various levels of government. However, to date the focus has narrowed to contact centres, and, for various reasons, BPO is increasingly seen as a service where South Africa does not enjoy a significant comparative advantage. This study considers potential comparative advantage in back-office services, with a focus on asset management and related offshoring and outsourcing. It starts with an analysis of the key drivers of this part of the outsourcing market, in order to draft a strategic framework. It then offers a detailed assessment of the local and foreign companies currently engaged in setting up or running BPO operations in the South African markets. “



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