Talk about a hot market for South Africa’s outsourcing sector! Today it is the backbone of the national economy, accounting for over 35 billion rand (over $2 billion or £1 billion) annually. Esethu Dywili, an accountant from a remote village in South Africa’s Eastern Cape province, illustrates this development well. His career in outsourced financial services has freed him to make the kinds of choices that have allowed him to give his family a better life, too.
Dywili has a BA in commerce and accounting. He has used his education to secure a position at Ventrica, a ESC call-center company which opened operations in South Africa in 2022. His successful employment journey has allowed him to help his parents and siblings build a new home. This accomplishment is a testament to how life-changing opportunities in this vibrant and ever-expanding sector can be.
Ventrica continues to grow its strong team of nearly 60 people in South Africa. Together, this group makes up about 30% of our overall workforce. The firm’s goal is to increase this percentage to 40%, a testament to the rising appetite for outsourced services. One such implementer is Dywili and his colleague Wheeler, who are enjoying the fruits of this expanding trend. They lie at the heart of a rapidly emerging sector that is laser focused on financial services, IT/software development, data analytics, and digital marketing.
The fast-paced development of the South African outsourcing industry has been influenced by strengths in a number of areas. The country ranks 4th in English language proficiency and 5th in educational attainment. Moreover, it benefits from positive time zone differences as well when stacked up against the UK. These qualities, coupled with widespread industry and government support, have allowed South Africa to become a strong competitor within the global outsourcing market.
South Africa is indeed at a crossroads, an unemployment rate of 33% makes it one of the highest globally. The outsourcing industry presents opportunities and hope for so many. Research has shown that upwards of 80% of students who finish these pipeline programs immediately land full-time jobs in their industry. The Western Cape provincial government believes there is tremendous potential. Along the way, they intend to partner with universities to better match curriculums with expectations in the marketplace.
Dywili wants to remind everyone about the dollar signs Working for a firm that serves international clients brings considerable financial benefits. For one, he notes, companies that make money in US dollar or British pound denominations can pay very high salaries. That’s because you’ll be paid in USD, which is more than a local South African company would pay you.
More than the offshore industry, the outsourcing industry as a whole has experienced phenomenal job growth. Mr. Joseph—a strong advocate for the industry—says that the sector created a net gain of close to 10,000 jobs last year. This year, they blew past that with another 10,000 plus jobs. Fifteen years ago, there were hardly 2,000 offshore jobs. This increase is indicative of the overwhelming interest from foreign companies to open for business in South Africa.
Gemma Edwards, another member of the Ventrica team, highlights the collaborative nature of their work environment: “They join the same calls as us… it’s not them and us – we’re one global team.” This camaraderie between athletes creates a deep commitment to the sport and work ethic from members.
All these new developments make Esethu Dywili hopeful for the future of South Africa’s workforce. We do what we do the best, risking burnout. He writes, “We’re hard workers and put 110% into everything. So that South Africans are just really picking up these opportunities and running with them and just maximizing the potential that’s there.” He’s convinced that being a part of the outsourcing industry provides people with great global exposure. They should be able to acquire this experience without needing to move overseas.
Industry expert Iain Banks notes that South Africa is emerging as a world-class outsourcing hub. This expansion represents a second wave of digitization that began with India. He continues by stating, “It all began in India as the first offshoring destination. It then moved on to the Philippines, and now South Africa is exploding.” He warns ongoing growth will soon force the industry to look for new hospitable homes in other places across Africa.
Jee-A van der Linde identifies educational quality as a crucial factor impacting economic growth and skills availability: “The quality of education, from a social perspective, is one of the biggest hindrances for the South African economy, and a big reason for the skills deficit that we have in South Africa.” Believing these educational challenges were addressed, Gonzalez embarked on another initiative to grow and promote the outsourcing sector.