Who Owns Whom

Contact Centre Operations

Yasmin Mahomedy | South Africa | 06 September 2021

Contact Centre Operations

The South African contact centre industry, which includes call centres, technical support and back and front office services for multinationals and South African companies, has recorded exceptional growth in recent years, driven by strong support by government through the incentives offered by the Department of Trade, Industry and Competition. The industry specialises in customer service and shared services, specifically in banking, financial services, insurance, and niche legal services. It is seen as an employment creator and foreign currency earner from outsource services.

Competitive Advantage

South Africa was voted by contact centre managers globally as the preferred business process outsourcing location in the world, after being placed second for three years in a row. More than half of the work performed by South Africa’s call centre outsourcing currently comes from the UK. South Africa’s competitive advantages include availability of skills, infrastructure, risk profile, business environment, English fluency and time zone alignment.

Government Support

Support by government, through the incentives offered by the Department of Trade, Industry and Competition, has seen the sector grow despite the challenges posed by the coronavirus pandemic. The Global Business Services Incentive was introduced in 2019 to create employment for young people and contribute to the country’s export revenue from offshoring services.

Report Coverage

This report focuses on the South African contact centre industry, a subsector of the business process outsourcing industry. It includes information on the state of the sector, job creation, government support, and influencing factors. There are profiles of 40 companies including international companies with call centre operations in South Africa such as Aegis, CCI, Merchants, Outworx and Webhelp, and back office suppliers such as Altron and Business Connexion.

Table of Contents

PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Value Chain 2
2.2. Geographic Position 3
3. SIZE OF THE INDUSTRY 4
4. STATE OF THE INDUSTRY 5
4.1. Local 5
4.1.1. Corporate Actions 10
4.1.2. Regulations 10
4.1.3. Enterprise Development and Social Economic Development 12
4.2. Continental 13
4.3. International 14
5. INFLUENCING FACTORS 16
5.1. Coronavirus 16
5.2. Economic Environment 16
5.3. Rising Input Costs 17
5.4. Government Support 17
5.5. Labour 19
5.6. Technology, Research and Development (R&D) and Innovation 24
6. COMPETITION 25
6.1. Barriers to Entry 28
7. SWOT ANALYSIS 28
8. OUTLOOK 29
9. INDUSTRY ASSOCIATIONS 29
10. REFERENCES 30
10.1. Publications 30
10.2. Websites 30
APPENDIX 1 – SUMMARY OF NOTABLE PLAYERS 31
COMPANY PROFILES 34
1STREAM MANAGED TECHNOLOGY SOLUTIONS (PTY) LTD 34
ACCENTURE SERVICES (PTY) LTD 36
AEGIS OUTSOURCING SOUTH AFRICA (PTY) LTD 38
ALTRON TMT (PTY) LTD 40
AVIRTUAL SERVICES (PTY) LTD 43
BUSINESS CONNEXION (PTY) LTD 45
CARE CALL RETAIL AND DISTRIBUTION SERVICES (PTY) LTD 48
CCI SA (DURBAN) (PTY) LTD 49
CCI SA JOHANNESBURG (PTY) LTD 51
CCI SOUTH AFRICA (PTY) LTD 53
CENTREVO (PTY) LTD 55
DIGITAL MALL (PTY) LTD 57
DREAMSCHEME 76 (PTY) LTD 59
DURBAN TECHNOLOGY HUB NPC 61
EC THREE (PTY) LTD 63
ERNST AND YOUNG SERVICES (PTY) LTD 65
EXLSERVICE SOUTH AFRICA (PTY) LTD 67
FSP SOLUTIONS (PTY) LTD 69
FULL CIRCLE CONTACT CENTRE SERVICES (PTY) LTD 71
GIJIMA GROUP LTD 72
I-TALK CALL CENTRE SOLUTIONS (PTY) LTD 76
ICONTACT (PTY) LTD 77
IGNITION TELECOMS INVESTMENTS (PTY) LTD 79
LABORIA SOLUTIONS (PTY) LTD 82
MANGO 5 (PTY) LTD 84
MARKET IQ (PTY) LTD 86
MERCHANTS SA (PTY) LTD 88
MINDPEARL SOUTH AFRICA (PTY) LTD 90
MTN GROUP LTD 92
NEXTEC INDUSTRIAL TECHNOLOGIES (PTY) LTD 96
O'KEEFFE AND SWARTZ CONSULTANTS (PTY) LTD 101
OUTWORX CONTACT CENTRE (PTY) LTD 103
SA COMMERCIAL (PTY) LTD 105
SOLUGROWTH (PTY) LTD 107
STATE INFORMATION TECHNOLOGY AGENCY SOC LTD 109
TALKSURE TRADING (PTY) LTD 113
TP SOUTH AFRICA TRADING (PTY) LTD 114
WEBHELP SA OUTSOURCING (PTY) LTD 116
WNS GLOBAL SERVICES SA (PTY) LTD 118
WNS SOUTH AFRICA (PTY) LTD 120