Durban BPO organisations come together with local government to give job seekers hope through public-private partnership

 For many years, South Africa has been plagued by high youth unemployment rates. The Business Processing Outsourcing (BPO) industry’s approach to recruitment and training offers a unique and sustainable solution to this problem. This impact sourcing model offers young people from disadvantaged backgrounds access to high-quality, tech-enabled, and sustainable employment without the need for previous experience. Although the industry in South Africa has seen great success and was recently ranked as the most favoured offshore location for call centres worldwide, remaining competitive against industry pioneering nations such as India and the Philippines could prove to be an obstacle to growth.

In recognition of the important work the industry is doing and the potential social and economic benefits it offers, some cities, like Cape Town, have actively engaged with the industry and offer incentives to local BPOs. This has helped those organisations remain competitive globally while still being able to provide fair remuneration for their employees.  Although now being challenged by Cape Town, Kwa Zulu Natal has remained the province that has achieved the largest percentage growth in contact centre jobs in 2023.

Spearheaded by CCI and the Durban Chamber of Commerce, leaders from key Durban-based BPO organisations and industry body BPESA are now seeking the same support in Durban. In an event held yesterday, stakeholders from across the industry met with Ethekweni mayor, Mayor Kaunde, the Head of the Department of Labour, and their respective government colleagues to make their case. 

Durban Chamber of Commerce CEO Palesa Phili outlined the massive job creation potential that growth in the BPO sector will bring.  Some of the incentives offered by other governments have included transport solutions for staff, free zones, rebates on rates and taxes, and support with regard to water and electricity supply and infrastructure. To achieve this, the various competitor BPO businesses in the area are being called on by CCI, the DCC, and BPESA to form a collective and mutually beneficial partnership with local government.  Phili highlighted the way in which government interventions could help step change the already impressive growth taking place in the Durban contact centre industry.

“We have seen first-hand the impact that these incentives can have on growth opportunities through our 3 Cape Town delivery centres. Not only has it made Cape Town more cost-effective for potential customers by lowering the premium gap between us and other international destinations, but it has also increased our ability to offer direct and indirect employment to the people in the surrounding communities,” said Peter Andrew, CEO CCI South Africa.

eThekwini Metro Mayor Mxolisi Kaunda shared his vision to make Durban a world class city.  Key to this was creating an favourable environment for business growth and job creation.  He expressed excitement at the role the BPO industry was playing in job creation.  Mayor Kaunda made a personal commitment to ensure that Durban retains its top spot as outsourcing destination of choice in South Africa.  Kaunda committed to work closely with the DCC, BPESA and industry leaders like CCI to make this vision a reality.

“Since opening our doors in 2013, we have employed thousands of youth from disadvantaged backgrounds, the majority of whom are women. We have seen agents rise through the ranks to join the executive suite, changing their and their families’ lives forever. And this is not unique to us, but it is unique to the industry. Imagine the impact we as an industry could make on unemployment in Durban by working together,” said Andrew.

With over 40% of unemployed people in Durban claiming to have given up looking for a job, finding a solution to unemployment in the city is a pressing issue. 

“Creating opportunity for the thousands of 2023 graduates is a task too great for one organisation. The key to finding a solution is collaboration both within the industry and with the government. I thank my colleagues from other organisations for the crucial role they have played in making yesterday’s event a reality. We all hope that through this and future discussions, we can make a case for a partnership between the government and the BPO sector to bring about positive change in Durban,” concluded Andrew.