South Africa's call centre sector enjoys strong growth in US market

South Africa's call centre sector is enjoying strong growth in the US market, according to Crispin Sonn, chair of the Business Process Enabling SA (BPESA) board. The sector's growth is attributed to the country's ability to provide high-quality services to clients in the US. The US market is complex, with each state having different expectations and regulations. South African call centres are well-equipped to handle this complexity, providing services such as fielding inquiries, complaints, and other calls from customers of client companies in sectors including financial services, retail, and healthcare.

The South African BPO sector generated an estimated R53bn in revenue in 2024, with the sector adding 26,346 jobs last year. The time zone differences between South Africa and some developed economies have aided in the sector's growth. According to Sonn, one of the biggest challenges facing the sector is improving flight connections and broader travel access between South Africa and the US. He noted that travel to Mexico, another major call centre location, is a four-hour direct flight, while travel to South Africa can take up to 22 hours with a layover.

Improving diplomatic ties with the US would have a positive impact on the visa process, air access, and trade generally, according to Sonn. He added that despite these challenges, the sector is still winning business in the US market. Clayton Williams, CEO of CapeBPO, noted that the Western Cape's major market was the UK, accounting for 90% of the region's volumes, until seven years ago. However, since the Covid pandemic, clients in the US now account for 25% of the region's business.

The Covid pandemic presented an opportunity for South African call centres to expand their business in the US market. According to Williams, the Philippines, another major call centre country, was unable to service the volume of calls from the US during the pandemic, allowing South African call centres to fill the gap. Kevin Lasky, COO of ApexCX, a US consulting firm, has worked with South African call centres to help them expand, position their brands, and develop sales strategies.

Lasky noted that ApexCX first started working with South African call centres in late 2016 and has seen significant growth and expansion in the sector. He has spent time in Cape Town, Durban, and Johannesburg, and is impressed by the impact that the sector is having on people's lives. Tom McCormick, a US specialist in the sector, is also satisfied with the way South African call centres are winning contracts in the US.

McCormick noted that the promise of a competent and intelligent workforce in South Africa has proven to be true. He added that the operators and ecosystem in South Africa are maturing, and that risk, governance, and regulatory perspectives are all satisfactory. The growth of the call centre sector in South Africa is expected to continue, driven by its high-quality services and competitive advantages.

The sector's growth is also driven by its ability to provide services to clients in various sectors, including financial services, retail, and healthcare. With its strong growth in the US market, South Africa's call centre sector is expected to continue to play a significant role in the country's economy.

Key points

• The South African BPO sector generated an estimated R53bn in revenue in 2024.
• The sector added 26,346 jobs last year.
• Improving flight connections and broader travel access between South Africa and the US is crucial for the sector's continued growth.