Johannesburg's CBD at night from the Carlton Centre. South Africa, Offshore BPO Confidence Index 2023
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South Africa

Overall confidence rating

77.6%

Johannesburg, South Africa

SponsoredConfidence Profile South Africa 2023

Sigma Connected

Gary Gilburd, Chief Executive Officer, Sigma Connected, South Africa, Offshore BPO Confidence Index 2023: Smiling man in a navy checked blazer and pink shirt against a white background
Cape Town's exceptional talent is capable of resolving complex customer interactions with deep empathy and a genuine eagerness to help, setting South Africa apart from other regions.
Gary GilburdChief Executive OfficerSigma Connected
Sigma Connected team in South Africa, Offshore BPO Confidence Index 2023: Agent in a headset smiling at her computer while a colleague adjusts his headset in the foreground

What drives your clients’ confidence in Cape Town as a BPO delivery destination?

Gary Gilburd: As one of the pioneers of the offshore BPO sector in Cape Town, our clients have confidence in our long-standing history of stable and mature operations, which we can fully attribute to the talented individuals who work with us. People in South Africa are well-educated and bring a certain level of emotional intelligence and a strong cultural fit that is difficult to find anywhere else. Capetonians, in particular, have this remarkable, almost instinctive empathy and a genuine eagerness to help, which shines through in their customer service delivery. Their proficiency in English and their neutral accents also contribute to a seamless integration with international clients. Plus, Cape Town is stunning, with tons of natural beauty and modern, reliable infrastructure, so many clients love to make the trip out here.

What has surprised you the most about operating in Cape Town in 2023?

Gary Gilburd: The BPO industry’s commitment to the community has gone beyond business this year, with some great impact sourcing initiatives fostering positive change and offering a lifeline to those who need it most. At Sigma Connected, we have taken significant steps in this direction by opening a new call center right in the heart of a small community, bringing jobs directly to where people live, eliminating long commutes, and allowing our employees to contribute more significantly to their households. We also recruit 60% of our staff from disadvantaged backgrounds, changing the trajectory of our employees' lives and the well-being of their families. The stories I've heard, like the young man who told me that joining Sigma Connected kept him out of a gang, have been the most humbling, unexpected, and rewarding dimension of our work in Cape Town.

What will drive Sigma Connected’s confidence in Cape Town moving forward?

Gary Gilburd: Our confidence in Cape Town will always be anchored in the exceptional customer service and problem-solving capabilities of the local talent pool. Capetonians excel in complex customer interactions that go beyond scripted responses, enabling them to resolve issues with a level of capability and empathy that sets them apart from other regions. Moreover, our growth trajectory in Cape Town has been remarkable—we've doubled in size to 3,500 FTEs this year alone, and there's still ample capacity for further expansion. This scalability, combined with the cultural alignment and the premium quality of service, solidifies Cape Town as a strategic location for us and reinforces our already 15-year commitment to the city.

About Sigma Connected

Founded in 2011, Sigma Connected employs 5,000 people across four contact centers in Cape Town, South Africa. The company provides customer care, collections, complaints, and vulnerable customer management services in English to clients in the UK, the US, and Australia.

Local Labor Market

Hiring for customer care, voice, and front-line agents is seen as a clear strength, with solid confidence across most other roles. Content moderation draws a more moderate response, and the public education system's language and career training is viewed with some caution. Recruiting foreign workers and sourcing work visas are the main concerns.

2023

Confidence rating

81.4%

How confident are you in your capacity to recruit for the following positions in your country?

  • Agents97%
  • Team leads90.4%
  • Managers87.4%

How confident are you in your capacity to recruit for the following functions within your country?

  • Customer care98.5%
  • Technical support86.7%
  • Content moderation74.8%
  • Social media85.2%
  • Accounts receivable83.7%
  • Revenue generation88.9%
  • Voice97%
  • Non-voice88.2%

How confident are you in the public education system's ability to teach the necessary skills for a career in an international CX delivery environment?

64.4%

How confident are you in the public education system's ability to train world-class language skills?

65.9%
  • Recruiting foreign workers57%
  • Ease of sourcing work visas for non-citizens55.6%

BPO Ecosystem

South Africa's ecosystem remains well regarded, though less so than in 2022. Competitors' international image, industry unity, and BPESA draw the strongest support, with InvestSA and the government's openness to dialogue close behind. Favorable legislation, fiscal incentives, and freedom from interference in international promotion are where confidence is more moderate.

2023

Confidence rating

81.2%

How confident are you that your competitors present a professional, attractive image of your country to international clients and prospects?

86.7%

How confident are you that the country's CX and BPO players are unified and collaborate effectively to maximize the industry's success?

84.4%

How confident are you in the government's ability to engage in open dialogue with the BPO / CX industry?

80%
  • Quality of fiscal incentives78.5%
  • Favorable legislation for BPO/CX industry75.6%
  • Lack of government interference82.2%
  • Lack of interference in international promotion78.5%

How confident are you in the government bodies involved in investment promotion in their ability to lobby for favorable industry regulations?

81.5%

How confident are you in the national BPO / CX association or cluster's alignment with the industry's needs?

83%

Infrastructure

Most of the infrastructure is well regarded, especially hotels, restaurants, leisure, and fiber internet, with mobile services and airports close behind. The power grid is the standout concern, while public transport is viewed with caution and international travel connections draw moderate confidence.

2023

Confidence rating

83.6%

How confident are you in the quality of the following utilities in your country?

  • Fiber internet91.8%
  • Mobile (internet)88.2%
  • Mobile (voice)87.4%
  • Fixed phone lines85.9%
  • Power grid49.6%

How confident are you in the quality of the following services in your country?

  • Hotels & accommodation96.3%
  • Food & restaurants95.6%
  • Leisure activities94.8%
  • Airports88.2%
  • Travel connections78.5%
  • Public transport63.7%

Commercial Property

Leasing options and sourcing space across several cities lead a broadly positive view of commercial property. Retrofitting, purchasing, and co-working are also well regarded, while plug-and-play facilities are viewed slightly more moderately.

2023

Confidence rating

83.8%

How confident are you in the availability of commercial property options for BPO/CX operations in your country?

  • Plug and play79.3%
  • Co-working space81.5%
  • Temporary co-working82.2%
  • Leasing options88.9%
  • Purchasing options83.7%

How confident are you in the ease of retrofitting existing commercial property for BPO in your country?

83.7%

How confident are you in the ability to source commercial properties across multiple cities for CX/BPO operations in your country?

87.4%

Public Security

Views on safety are mixed. Business travelers are seen as safe, while confidence in staff commuting on public transport is more moderate. Law enforcement draws low confidence for both its responsiveness and its trustworthiness.

2023

Confidence rating

72.2%

How confident are you that foreign business travelers will be safe visiting your country?

85.2%

How confident are you that the local labor force is safe using public transportation for commuting?

71.8%

How confident are you that local law enforcement is trustworthy and helpful?

65.2%

How confident are you that local law enforcement will respond to criminal activity promptly and efficiently?

66.7%

Political Stability

Since the last index, confidence in political stability has weakened. A peaceful transition of power and the fairness of elections draw high confidence, and the central bank and judiciary are seen as fairly independent. Core government, law enforcement, and the civil service are viewed with the most concern, and foreign policy orientation is lukewarm.

2023

Confidence rating

67.7%

How confident are you in the foreign policy orientation of your country's government?

65.9%

How confident are you in the fairness and competitiveness of your country's electoral process?

80%

How confident are you that your country will perform a peaceful transition of power after elections?

80.7%

How confident are you that the following public services are free from corruption and/or outside influence?

  • Core government48.9%
  • Civil service56.3%
  • Central bank78.5%
  • Law enforcement54.1%
  • Judiciary77%

Economic Stability

Economic sentiment has fallen markedly since the 2022 edition, making it the main area of concern. The management of publicly owned utilities draws the weakest confidence, followed by public finances and currency stability. Confidence in tax rates is moderate, and inflation fares slightly worse.

2023

Confidence rating

58.2%

  • Manageable inflation63.7%
  • Manageable tax rates71.1%
  • Stable currency55.6%

How confident are you in the government's ability to manage publicly-owned utilities and services?

45.9%

How confident are you in the government's ability to manage the country's public finances?

54.8%

Annual Comparison

South Africa

Overall rating

202280.3%
202377.6%
202480.6%202581%

Local Labor Market

202280.6%
202381.4%
202483.5%202584.1%

BPO Ecosystem

202286.1%
202381.2%
202484.3%202584%

Infrastructure

202285.3%
202383.6%
202483.6%202583.7%

Commercial Property

202286.7%
202383.8%
202483.3%202584.9%

Public Security

202270.8%
202372.2%
202474.3%202575%

Political Stability

202272.9%
202367.7%
202469.2%202569.2%

Economic Stability

202272.3%
202358.2%
202476.1%202576.2%