Why South Africa is the competitive edge in contact center offshoring

Traditionally, there have been a few locations around the world synonymous with contact center and customer support outsourcing, with India and China leading the charge in recent years as the most appealing destinations for offshore support. However, offshoring customer support services to South Africa is emerging as a competitive option that enables contact center leaders to keep prices low and quality high.

Advantages of contact center offshoring

Business owners often turn to offshoring to save money and streamline their operations while accessing skilled support. India, Vietnam, Indonesia, and the Philippines all rate high in terms of financial appeal due to their low cost of living. However, many companies seek other alternatives to provide a consistent, engaging customer experience.

One of the major rising stars in the outsourcing world is South Africa, offering a blend of cost efficiency, English proficiency, expert talent, and a culture that encourages a high quality of support. As South Africa comes to prominence as an option for outsourcing support, it’s time for forward-thinking contact center leaders to explore the key advantages of hiring South African teams. These advantages include cost efficiency, a skilled and educated workforce, language proficiency and cultural affinity, and advanced infrastructure.

Cost efficiency

One of the main appeals of outsourcing is the ability to save money. Western countries rely on favorable exchange rates and lower costs of living in other countries to decrease their labor costs while still offering a fair wage to their team members.

South Africa boasts a low cost of living that can decimate labor costs for Western businesses. To put it into perspective, the United States has a cost of living index of 70.4, and the United Kingdom has a rating of 62—South Africa’s cost of living rating is significantly lower at 34.5. This rivals other outsourcing destinations like the Philippines, which has a rating of 31.0.

Countries across Europe, North America, and Australia can all cash in significant savings by working with South African teams that simply require less money to operate at the same level as a local provider. The American Dollar, the Euro, and the Canadian Dollar also leverage more buying power than the South African Rand, making any operational expenses much more affordable.

Skilled and educated workforce

A high literacy rate and quality education system have set the South African labor market apart from other popular offshoring destinations. While other countries may have cheaper labor, they often offset the savings with a less qualified labor market. For example, India has a lower cost of living index than South Africa, but the Indian literacy rate is also much lower, at only 74.34%. Meanwhile, South Africa has an impressive 95.02% literacy rate, creating a labor market built on rich communication skills.

This has led to a wide availability of skilled professionals who can effectively communicate with customers and resolve complex problems. For example, the two largest industries that leverage South African outsourcing are IT & telecommunications and banking, financial services, and insurance, demonstrating that the South African workforce possesses the knowledge and skill required to support specialized, technical industries.

Language proficiency and cultural affinity ensure high-quality, accessible customer support

Language proficiency

Language barriers can be a major drawback to any outsourcing relationship, as customers quickly get frustrated when contact center representatives are unable to communicate effectively. South Africa boasts a population that’s highly proficient in English, one of the main business languages used worldwide. In fact, the country has a “very high” English Proficiency Index score of 609, which is the 12th-highest proficiency worldwide, beating out the United States and several European countries.

Additionally, the South African accent is highly neutral and easy to understand, leading to effective, comfortable communication between people of all cultures. Because South Africa has 11 official languages, and the majority of South Africans can speak more than one language, businesses can effortlessly cater to customers across an international market.

Cultural affinity and quality

South Africa is known for being a multicultural country, blending a Westernized culture with a wide variety of coexisting ethnic groups. Its multicultural history has created a workforce that’s attuned to Western business culture, ensuring that callers feel comfortable and understood when interacting with South African agents. Their ability to adapt to different languages and cultures, while also being sensitive to people of different backgrounds, facilitates better customer relationships with each interaction.

Customer service is a hallmark of South African culture, with 94% of South African consumers stating that customer service is equally important as a company’s products. This culture transfers to the workforce, where outsourcing providers heavily invest in training programs to ensure a high standard of service that supports the customer experience. Due to their communication skills, training, and cultural competence, contact center agents in South Africa have the potential to boost positive feedback and consumer satisfaction rates for their partners.

Time zone compatibility

Outsourcing to South Africa mitigates another common challenge for offshore collaboration—time zone differences. South Africa has a convenient time zone overlap with countries across Europe and the United Kingdom and even has a couple of hours of shared business hours with parts of the United States. Even for countries outside of this zone, South African providers often provide 24/7 support to cater to global customers.

Technological infrastructure and government support

South Africa is technologically advanced. This adds another layer for outsourcing services. Due to support from the government and its skilled workforce, South Africa has one of the largest information technology sectors on the continent. Telecommunications is a multi-million dollar market in South Africa, leading to reliable network connectivity that can consistently support your operations without disruption.

Government support

South Africa’s government has formally recognized the country’s potential as an outsourcing destination by launching the Business Process Services (BPS) Incentive. By specifically investing in programs to increase offshoring and attract international business, the South African government is building a thriving business process outsourcing sector capable of handling a wide variety of outsourcing activities. When businesses outsource to South Africa, they can trust that they’re doing business in a stable location for BPO services.

South Africa as your offshoring solution

South Africa’s current culture and economy make the country an appealing destination for companies that want to reap the financial benefits of offshoring, while still providing a consistent consumer experience. Customers will be able to connect with educated, knowledgeable representatives who already understand how to navigate the needs of a Western audience. Meanwhile, business owners and contact center leaders can access reliable, affordable resources that effortlessly integrate with their current processes. Outsourcing to South Africa instead of traditional locations can give you the advantage you need to emerge at the forefront of your industry.

KellyConnect is the premier provider of BPO and managed services for companies interested in international offshoring to rising destinations such as South Africa. When you work with KellyConnect, you’ll have access to knowledgeable talent experts who understand the local culture, helping you build a streamlined international team that saves you money and strengthens your reputation.