Andrew Whitfield Highlights SA's Growth in Delivering Complex Services to UK Firms

During a keynote address at the South Africa-UK GBS roundtable in London, Whitfield emphasized the nation’s role as a leading outsourcing hub for high-value services.

South Africa is cementing its position as a trusted partner in providing essential global business services (GBS) such as financial risk, regulatory support, and digital services to UK investors, according to Deputy Minister of Trade, Industry, and Competition, Andrew Whitfield. During a keynote address at the South Africa-UK GBS roundtable in London, Whitfield emphasized the nation’s role as a leading outsourcing hub for high-value services.

“With a highly skilled, English-speaking workforce, South Africa has become a go-to destination for outsourcing services, from legal support to digital transformation, offering cutting-edge solutions at a fraction of the cost, saving companies up to 50% compared to other outsourcing destinations,” Whitfield stated.

The roundtable event, hosted by Business Process Enabling South Africa (BPESA), was part of a broader mission to the United Kingdom led by Deputy President Paul Mashatile, aimed at positioning South Africa as a premier investment destination.

UK: South Africa’s Largest GBS Market

The UK remains the largest source of GBS demand for South Africa, accounting for 56,000 jobs and generating £650 million in revenue through partnerships with prominent UK firms such as British Gas, Scottish Power, and Virgin Atlantic.

Since the introduction of the GBS incentive in 2019, over 50 global companies have established operations in South Africa, contributing R40 billion in export revenue. The primary goal of the incentive is to create employment opportunities within South Africa, particularly for the youth aged 18-34.

Growth and Expansion of the Sector

South Africa’s GBS sector has evolved significantly, shifting its focus from traditional call centers to high-value services such as data analytics, financial services, and digital risk management. The sector has grown from 26,700 jobs in 2015 to over 104,000 jobs today.

The GBS Masterplan, signed in November 2021, has played a vital role in this transformation by focusing on creating more sophisticated, value-driven services. Whitfield projected that by 2030, the sector could create up to 500,000 cumulative jobs through continued expansion and new investments.

“Our sector not only offers major cost savings but also delivers quality outcomes with proven resilience,” he added. South Africa's adaptability, including the success of work-from-home models, has made it an attractive destination for global businesses, with no major electricity outages experienced in the last 190 days, a critical factor for operational reliability.

Future Prospects and UK Investment

Whitfield encouraged UK businesses to explore the dynamic opportunities in South Africa's GBS sector, citing its value proposition of quality services, cost savings, and a stable business environment.

“Our goal is clear: rapid economic growth and job creation through collaboration and continuous innovation in GBS. We invite British investors to take advantage of this vibrant sector and its potential for growth,” said the Deputy Minister.

The event concluded with positive feedback from participating GBS companies, who expressed optimism about expanding their operations in South Africa in the next 12 months, signalling a strong future for UK-South Africa partnerships in the sector.