Brexit could boost SA service industry

South Africa’s burgeoning call services sector, which gets more than half its work from Britain, could attract larger inflows as the effect of Brexit weighs and companies seek savings by moving operations offshore, industry officials said.

Cultural affinity, good English language skills and similar time zones have helped spur SA’s business process outsourcing sector as it looks to compete with India and the Philippines in a global industry worth $89bn (R1.27-trillion) in 2017.

“When there is uncertainty the outsourcing industry blooms,” Kerry Hallard, president of the London-based Global Sourcing Association, said on Wednesday.

“Obviously, there is huge uncertainty around Brexit and that provides outsourcing opportunities to countries such as South Africa.

“SA is building itself a reputation for customer service and if it carries on promoting that then it could benefit from Brexit immediately,” Hallard said on the sidelines of an industry conference in Cape Town.

Research firm Everest said SA’s global services market had grown by about 22% a year in the past four years – twice the global industry growth rate and three times faster than its Asian rivals.

Supported by a government incentive scheme that pays investors for each job created, the sector now employs about 40,000 people, many of them school-leavers in first jobs. –