Quick Enquiry
State flags job potential in business process services

SOUTH Africa’s business process services (BPS) industry — which includes call centres — has been flagged in the Industrial Policy Action Plan (Ipap) as a potential high-growth sector to complement the government’s quest to create employment. South Africa BusinessThe plan seeks to claim a bigger stake of the UK’s outsourcing market. The Department of Trade and Industry believes South Africa could — from as early as next year — benefit from a steady transfer of English-based voice operations out of India. "Given existing historical and cultural links, available English-language skills and the favourable time difference, the UK has been and remains the largest offshore source market for South Africa — with at least 65% of the off-shore operations located in South Africa being either UK-captive operations or third-party operations servicing UK clients from this country," reads the Ipap. South Africa was named among the top three emerging offshoring destinations in the world. The plan says the package of services offered to international customers included providing services for telecoms, online retailing, insurance and media. South Africa’s BPS industry was estimated to be growing at about 8% a year and its size last year stood at about $150bn. The country has already attracted global operations such as Amazon, Asda, Barclays, British Gas, Hewlett Packard, Lufthansa, Microsoft, SABMiller, Shell, Sun Microsystems and Virgin. The major centres for BPS activity are Gauteng, the Western Cape, KwaZulu-Natal and the Eastern Cape. Meanwhile, experts on Thursday queried the lack of industry input and the red tape in the fifth Ipap’s key action programme for biofuels. The plan highlights biofuels as an area that will bring "R8.9bn annual savings on the balance of payments, the creation of 55,000 new jobs (and a) reduction of 498,000 tons per annum in CO² equivalent emissions." Last year, the government published mandatory regulations to ensure that biofuels are blended with local fuels — 2% bioethanol in petrol and 5% biodiesel in diesel — to supplement the local fuel supply and reduce the use of fuel imports. However, in January, Department of Energy chief director for clean energy Mokgadi Modise told Parliament’s energy committee that the target would not be met this year as there was no funding model. The Ipap notes that "the biofuels sector will not develop in South Africa without the supportive incentive regime that is common in most biofuels-producing countries". A draft biofuels incentive programme guide is expected in the second quarter of 2013-14. South African Biofuels Association president Andrew Makenete queried the lack of private-sector input. "Incentives are there to help the private sector get going," he said. Stellenbosch University senior chair of energy research in biofuels and other alternative clean fuels Emile van Zyl cautioned against government being too prescriptive in setting up the biofuels industry. "There’s already a prerequisite where feedstocks come from. A new industry should be set up on business principles (and not) prescribe who should benefit and who should provide feedstocks." Mr Makenete echoed this. "When it first started, it was about what you couldn’t do, not what you could do." However, he noted the government had widened the parameters to develop the industry. Prof van Zyl also noted that milestones such as mandatory blending regulations were being realised. Source: http://www.bdlive.co.za/business/trade/2013/04/05/state-flags-job-potential-in-business-process-services

Share your Comments
Please Login to view/submit Comments & Replys