Wednesday, September 30, 2009

Indian BPO firm invest R500m in SA

Friday, 10 July 2009

Aegis Limited, an Indian Business Process Outsourcing (BPO) firm, acquired the Johannesburg-based Call Centre Nucleus (CCN) this week as part of their R500 million investment into the country.

The deal is expected to create 5 000 jobs in South Africa over the next three years.

“[The acquisition] offers an opportunity for Aegis to develop skills, create employment and bring international experience to South Africa. This is a step towards our commitment to creating 5000 jobs in South Africa over a period of time,” said MD of Aegis Aparup Sengupta said in a statement.

South Africa’s CCN Group is the country’s largest privately owned contact centre outsourcing company with revenues in excess of R150 million.

In recent years BPO has become an important global industry. According to international research firm Everest Global, the industry has an annual market of US$30 billion. South Africa’s share in this market is less than 2% while India, by far the largest, accounts for 37% of the market.

Everest Global believes that South Africa, despite its small share in the market, is a popular offshore BPO destination primarily because of its large English speaker base, existing experience in contact centre industries such as finance, time zone compatibility and the lower cost of doing business when compared to source countries.