Why businesses choose to offshore to South Africa for outsourcing excellence

When businesses think of offshoring, the usual locations like India and the Philippines immediately come to mind. But the reality is that South Africa has also become a rising star. 

With its rich pool of talented professionals, native English fluency, and growing reputation as a global outsourcing hub, the country offers much more than competitive costs. 

South Africa brings a unique blend of world-class service delivery and cultural alignment, making it an attractive choice for companies seeking to enhance their operations.

In the 522nd episode of the Outsource Accelerator Podcast, Daniel Seligman, the CEO and Founder of Talently, points out the main benefits when you offshore to South African talent. 

Services that you can offshore to South Africa 

South Africa has steadily gained recognition as a prime offshoring destination for businesses across the globe. 

You can offshore a wide range of services to South African talent, including:

• Customer service and support – South Africa has a strong customer service culture and offers a high level of customer empathy and interaction.
• IT and software development – South Africa has a growing pool of skilled IT professionals and software developers.
• Finance and accounting – South Africa has a well-established finance and accounting sector, with professionals well-versed in international accounting standards.
• Data entry and processing – South Africa offers a proficient workforce capable of handling data entry and processing tasks with accuracy and efficiency.
• Digital marketing and content creation – Offshoring digital marketing and content creation to South Africa can tap into a talented pool of creative and strategic minds.
• Research and analytics – With capabilities in market research, data analysis, and insights generation, South African talent can provide valuable support for informed decision-making and strategic planning
• Human Resources – South Africa boasts a proficient human resources sector, making it an ideal destination for offshoring HR functions. 

Daniel says that “[Talently] aims to connect with businesses that see value in our services, and where they’re looking for talent, we can support them with people in South Africa.”  

Top 5 advantages when you offshore to South Africa 

Daniel lists these major benefits seen by those who offshore to South Africa: 

1. Native English fluency 

One of the key advantages of offshoring to South Africa is its native English-speaking population. South Africans typically have a neutral accent, which makes them easily understood by international clients and customers. 

This linguistic advantage ensures smooth communication, fostering better customer experiences and reducing the likelihood of miscommunication. 

Data company BONARD found that there are strong efforts to expand English learning in schools even further post-pandemic. The ELT market recovery stood at 92%.  

Businesses that prioritize seamless customer interactions find South African talent particularly valuable for roles in customer service and technical support.

Daniel found that language barrier was a major hurdle for many companies, but that luckily this was no problem with South Africa. 

“English is the first language of South Africa. Everyone speaks and writes perfect English.” 

2. Access to an educated workforce 

South Africa boasts a well-educated and skilled workforce, with many professionals holding qualifications in diverse fields such as technology, finance, and healthcare. 

The country’s universities and training institutions are recognized for producing graduates who are not only academically qualified but also ready to meet the demands of global industries. 

Daniel affirms this, saying “it’s the education capital of Africa. Seven of the top universities and colleges in Africa are based in South Africa.” 

Additionally, there are various government-led initiatives that focus on upskilling individuals for the BPO sector. This ensures a steady supply of talent to meet market needs.

3. Reputation as Africa’s business hub 

South Africa’s reputation as the business hub of Africa further solidifies its position as a top outsourcing destination. The country’s economic stability and robust legal framework provide a conducive environment for international businesses. 

South Africa is home to a growing number of multinational corporations, which has created a dynamic ecosystem that promotes innovation and knowledge sharing. 

Daniel attests to this as well. 

“A lot of the business in Africa operates out of South Africa financially, [and] software and technology. There’s a really big density of people with amazing talent and backgrounds.”  

This reputation also assures businesses of a secure and transparent offshoring process, which is critical for long-term partnerships.

4. Time zone advantage

Another significant benefit of offshoring to South Africa is its time zone compatibility. It fits especially well with key markets in Europe and parts of the Americas. 

South Africa’s time zone (GMT+2) allows for overlapping working hours, facilitating real-time communication and collaboration between teams. 

Daniel says that “it’s very centrally located, [it’s] very easy for people to work European hours, North American hours, or even Australian hours as well.” 

This advantage reduces project delays and ensures that customer service operations can be conducted in sync with clients’ business hours.

5. Cost-effectiveness

Cost savings remain one of the primary drivers for businesses to offshore, and South Africa offers cost advantages without compromising quality. Labor costs in South Africa tend to be lower than in developed markets, making it a cost-effective solution. 

Recommendations for companies planning to offshore to South Africa 

To ensure a successful offshoring experience, businesses should consider the following recommendations:

Partner with reputable providers

Conduct thorough research to identify outsourcing providers in South Africa with proven expertise and a strong track record in your industry. Look for companies that offer customized solutions and maintain transparent communication throughout the partnership.

Daniel recommends looking for quality over cheapness. 

“You get what you pay for and you really want to make sure you’re investing in the right people to help your business move forward.” 

Invest in cultural and communication training

While South Africa’s workforce is culturally versatile, it’s essential to bridge any potential gaps between your company’s culture and that of your South African team. 

Conduct training sessions to align expectations and ensure a smooth integration of your offshore team into your operations.

Leverage government incentives

Take advantage of government incentives aimed at promoting the BPO sector in South Africa. These incentives often include tax benefits, subsidies, and grants that can reduce costs and improve your return on investment.

Establish clear metrics and KPIs

Define performance metrics and key performance indicators (KPIs) to monitor the success of your outsourcing initiatives. 

Regularly review these metrics to identify areas for improvement and ensure that your offshoring goals are being met.

Maintain open and regular communication

Effective communication is vital for the success of any offshoring partnership. Use modern collaboration tools to ensure seamless communication between your onshore and offshore teams. Schedule regular check-ins to discuss progress, address challenges, and align on goals.

Daniel suggests being realistic with expectations and leaving room to adjust.

“You have to set the right expectations, give them the tools to be successful, and compensate them for the roles that you’re bringing them in for.

And you have to give them a little bit of time to get their feet wet, [because] nothing happens overnight.”