Co-ordination to support inclusive growth in developing countries in the context of globalization: The case of the business process outsourcing sector in South Africa

Caitlin Allen Whitehead, Zaakhir Asmal and Haroon Bhorat

Working Papers from University of Cape Town, Development Policy Research Unit

Abstract: Globalisation has affected the countries, sectors and communities in many different ways. One sector which has benefited substantially from globalisation is Business Processing Outsourcing (BPO). Using a case study approach, we interviewed five BPO experts to ascertain the opportunities for inclusive growth, job creation, the nature of skills in the sector and factors which have contributed to the continued success of the sector in South Africa. Our findings suggest that outside of major urban centres, opportunities to partake in the sector are limited. In addition, while there are many opportunities for young people for entry-level roles in the sector, there has been a recent shift towards more complex roles, which will require candidates to possess a larger number of skills. Factors which have contributed to the continued success of the sector include a cost advantage, high-quality service and staff, a cultural affinity with other English-speaking countries and a favourable time zone. Despite the overwhelming success of the sector, a number of challenges remain, and it is imperative that stakeholders overcome these challenges so that the sector remains globally competitive.

Keywords: Business process outsourcing sector; labour market; South Africa; globalisation (search for similar items in EconPapers)
JEL-codes: F61 J21 J24 O19 (search for similar items in EconPapers)
Pages: 27 pages
Date: 2023-08
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Published in Working Paper Series by the Development Policy Research Unit, August 2023, pages 1-27

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