Aerial view of Cape Town, South Africa with Table Mountain, a white stadium, and the coastline. South Africa, Offshore BPO Confidence Index 2024
Flag of South Africa

South Africa

Overall confidence rating

80.6%

Cape Town, South Africa

Respondents in South Africa express near-total confidence in the availability of talent for English-speaking entry-level BPO roles, highlighting the country’s enduring appeal as a service hub. However, challenges are noted in sourcing experienced managerial talent, operational expertise, and multilingual candidates, alongside concerns about inconsistent government incentives and lingering infrastructure issues.

SponsoredConfidence Profile South Africa 2024

HGS South Africa

Carrie Ramskill, COO, UK and South Africa, HGS South Africa, Offshore BPO Confidence Index 2024: Smiling woman with shoulder-length auburn wavy hair and a dark patterned top against a bright blue background
South Africa has a reputation for service excellence that you have to experience to believe.
Carrie RamskillCOO, UK and South AfricaHGS South Africa
HGS South Africa team, Offshore BPO Confidence Index 2024: About ten people smiling in a bright office lounge with orange cushions and a potted plant

How do your clients view South Africa as a BPO and CX delivery destination? What makes them most confident?

Carrie Ramskill: When clients look closely at South Africa, they quickly realize how compelling the location is for CX. Over the years, it has evolved into a mature, innovative hub that clients appreciate for its similar time zone to Europe, agents’ neutral accents, and the population’s high cultural affinity with US and UK customers. The country’s large labor pool of educated, well-trained, empathetic agents is a notable plus—our clients know they can quickly scale in South Africa to match their growth aspirations. Plus, our clients enjoy the cost savings—up to 60% when compared to onshore UK or US—and increased customer loyalty that we’re able to deliver when combining our leading technology with South Africa’s many advantages.

HGS South Africa team, Offshore BPO Confidence Index 2024: About twenty employees posing and making hand gestures in front of a glowing hgs sign

What makes South Africa unique as a BPO and CX destination?

Carrie Ramskill: The South African difference stems from its people, with a reputation for service excellence that you have to experience to believe. People will go out of their way to help you, taking time out of their days to provide an empathetic, authentic, and satisfying experience, and always with a smile. That culture melds perfectly with best-in-class CX. The country also offers abundant commercial real estate, a collaborative BPO ecosystem, advanced digital infrastructure, and strong government support for the industry. And it’s free from major natural disasters, offering consistent business operations. Plus, impact sourcing in South Africa is incredibly important to HGS and our clients. The country is home to massive pools of untapped talent, people who would be proud to work in the industry. Not only is impact sourcing a source of low attrition and high employee engagement, but it’s also allowing BPOs to strengthen communities and play a positive role in the country's development.

HGS South Africa team, Offshore BPO Confidence Index 2024: About twenty people in a mix of traditional and business dress outside an office building marked HGS

What could South Africa stand to improve to maximize your confidence in the country’s BPO/CX future?

Carrie Ramskill: Outside of cities like Cape Town, Johannesburg, and Durban, there’s a need for continued investment in infrastructure, including roads, public transport, data centers, and digital connectivity. Talent pools exist in other parts of South Africa, but without that infrastructure in place, BPOs and their clients can’t take advantage of these locations. Plus, there’s a need for targeted leadership development throughout the South African BPO industry. At HGS, we believe that leadership training is best conducted internally, lifting the brightest talent from within. We want to make sure the workforce is well-equipped to deliver high-quality services and master new technology as it advances.

About HGS South Africa

Founded in March 2024, HGS South Africa has a 1,000-seat capacity in the Woodstock area of Cape Town. From here, HGS provides customer service, technical support, back-office, collections, and sales services to clients in the US, UK, Europe, Australia, and Canada, with capabilities for English, Afrikaans, French, German, and Italian languages.

Local labor market

Respondents in South Africa have almost total confidence in the availability of talent for English-speaking entry-level roles, with uniformly high confidence in their ability to find people who can excel in providing BPO service. However, multiple commenters stressed their difficulty in finding managerial experience and operational expertise and detailed how multilingual candidates are only available in small volumes.

2024

Confidence rating

83.5%

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

  • Agents99%
  • Team leads91.6%
  • Supervisors88.4%
  • Managers82.1%
  • Executives69.5%
Sourcing for entry-level agents is not a concern at all; the challenge is finding strong leadership and support roles to support the country’s growth.

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

  • Customer care99%
  • Technical support86.3%
  • Content moderation73.7%
  • Finance & accounting86.3%
  • Marketing & sales80%
  • Back-office admin93.7%
  • Voice99%
  • Non-voice93.7%
South Africa is alive with talented young people who, given the right opportunities and support, are more than capable of servicing international markets.

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

  • English100%
  • French57.9%
  • Dutch55.8%
  • Portuguese55.8%
  • German52.6%
  • Arabic42.1%
  • Italian42.1%
  • Spanish40%
  • Mandarin35.8%

*Note: Language scores are for guidance only and not factored in to the overall confidence rating

  • Ease of sourcing work visas for internationals56.8%
  • Talent availability in Tier 2 locations81%
  • Talent availability in Tier 3 locations67.4%

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?

67.4%

How confident are you in the availability of domestic graduates to fill BPO/CX roles?

89.5%

How confident are you that the majority of domestic students will remain in your country after graduating?

83.2%

How confident are you in your public education system's ability to teach the following languages?*

  • English94.7%
  • French40%
  • Dutch39%
  • German36.8%
  • Arabic33.7%
  • Portuguese30.5%
  • Mandarin29.5%
  • Spanish29.5%
  • Italian28.4%

*Note: Language scores are for guidance only and not factored in to the overall confidence rating

Demand for European languages is increasing, but the supply is just not here. Earlier intervention to teach languages in schools is needed.

BPO ecosystem

Respondents are mostly highly confident in South Africa’s primary investment promotion agency and BPO association, but some cracks have started to show in the attractiveness of fiscal incentives and favorable legislation from the government side.

2024

Confidence rating

84.3%

  • Close alignment with industry needs86.2%
  • Soft-landing support for market entrants81.2%
  • Long-term support for incumbents82.5%

How confident are you in InvestSA's ability to lobby the government for favorable industry regulations?

87.1%

How confident are you that the country's BPO association(s) is/are aligned with the industry's needs?

91.6%

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

90.5%

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

79%

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

85.3%
  • Quality of fiscal incentives79%
  • Favorable legislation for BPO industry75.8%
  • Lack of government interference89.5%
In my opinion, government incentives are more geared toward larger volume deals, so smaller companies might struggle to leverage them to compete pricing-wise with countries like India or the Philippines.

Infrastructure

Confidence is strong in most of South Africa’s connectivity utilities and services, but concerns over the stability of the country’s power grid linger despite sentiments that the problem appears to have been solved. Public transportation and healthcare services also hold SA back in this category.

2024

Confidence rating

83.6%

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

  • Fiber internet89.5%
  • Fixed phone lines87.4%
  • Mobile (voice)83.2%
  • Mobile (internet)83.2%
  • Roads & throughfare83.2%
  • Power grid63.2%
Electricity has been an issue in South Africa for a very long time, but the problem seems to have been resolved at the time of answering this survey.

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

  • Food & restaurants95.8%
  • Leisure activities94.7%
  • Hotels & accommodation93.7%
  • Airports92.6%
  • Healthcare71.6%
  • Public transport65.3%
Despite a few challenges, we offer visitors amazing experiences: food, restaurants, and leisure activities are all world-class and affordable.

Commercial property

Respondents in South Africa have painted an overall positive picture of a cost-competitive property market with ample availability of purchasable or leasable buildings and co-working options.

2024

Confidence rating

83.3%

How confident are you in the availability of the following options for commerical property?

  • Office space87.4%
  • Warehouses82.1%
  • Plug and play72.6%
  • Co-working space83.2%
  • Leasing options94.7%
  • Purchasing options86.3%
After COVID-19, many buildings remain unoccupied or have space available, and these are currently offered at much-reduced rates.

How confident are you in the cost-competitiveness of leasing commercial property in your country?

84.2%

How confident are you in the cost-competitiveness of purchasing commercial property in your country?

81%

How confident are you in the ability to leverage non-metropolitan areas for commercial space in your country?

77.9%
Non-metropolitan areas have come into focus recently, and I believe they will offer really good opportunities in the near future as Cape Town reaches a level of saturation.

Safety and security

Respondents noted how South Africa’s law enforcement services could be ineffective at times and that safety can sometimes be an issue when visitors are unattended, but that free, fair, and non-violent transitions of power are a mainstay in the country.

2024

Confidence rating

74.3%

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

82.1%

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

72.6%

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

67.4%

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

65.3%

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

84.2%
After the recent national elections, I am very optimistic about South Africa and its future as a safe and reliable location for BPO.

Political stability

In South Africa’s lowest-scoring category, respondents’ belief in the government’s ability to manage public services and finances is very low, with concerns that corruption is holding the country back. Yet, a few commented on how noticeable improvements are being made to solve the issue.

2024

Confidence rating

69.2%

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

  • Core government57.9%
  • Civil service61%
  • Central bank84.2%
  • Law enforcement61%
  • Judiciary80%

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

73.7%

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

86.3%

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

57.9%

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

61%
Plenty of measures are being taken to root out corruption and bring South Africa into the realm of well-governed countries.

Economic Stability

Respondents’ confidence in the overall stability of South Africa’s economy could be higher, with the stability of the South African rand (ZAR) causing minor concerns as they look ahead to 2025.

2024

Confidence rating

76.1%

  • Overall stability75.8%
  • Managable inflation (2025)76.8%
  • Manageble tax rates (2025)82.1%
  • Stable currency (2025)69.5%
The ZAR is highly volatile as an emerging market currency, so it fluctuates a lot, but nothing exceptional or serious.
We have a solid and well-run tax authority, and the Central Bank plays an active role in managing inflation.

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%

Safety and 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%