Global Business Services sector committed to creating 500 000 jobs by 2030

South Africa’s Global Business Services (GBS) sector is committed to fighting one of the most prevailing issues in the country, unemployment, by creating 500,000 jobs by 2030.

The sector offers refers to a business model where a company centralises and delivers shared services like finance, accounting, human resources, IT, customer service, and legal support to its various business units.

The job targets are part of the GBS Sector Master Plan, an initiative spearheaded by the Department of Trade, Industry and Competition (the DTIC) with Business Process Enabling South Africa (BPESA) and Harambee Youth Employment Accelerator. 

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How many jobs have been created

Zain Patel, BPESA chairperson, said that between January and September 2024, the sector created over 14 000 new jobs, 12 564 of which were taken by the country’s youth.

The sector has also contributed almost R13,6 billion in export revenue during the same period. He believes this proves their plan to create 500 000 jobs by 2030 is on track.

In addition, ten new international Business Process Outsourcing (BPO) operators had chosen to invest in South Africa.

“This reaffirms South Africa’s position as the world’s third most attractive off-shoring destination for prominent international firms in the telco, retail, healthcare, technology and financial services sectors,” he said.

Jobs to be created in the near future

Reshni Singh, BPESA CEO, said that since the masterplan was launched in the first quarter of 2022, they have managed to attract 30 international investors to our shores, of whom 22 converted to invest in SA.

They include 12 Business Process Outsourcing Operators and 10 end-user clients. 

“We expect they will create between 13,000 and 17,000 new jobs in the next 18-24 months, which is a fantastic success story for the sector and the country.”

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Elevating global competitiveness

Singh added that significant strides are being made towards advancing South Africa’s demand-side commitment goals under the GBS Sector Master Plan. 

“South Africa’s efforts to strengthen its global competitiveness in the GBS sector have yielded positive shifts.  The DTIC has supported the industry to remain globally cost-competitive by undertaking a review of the national GBS Incentive Programme.

“On average, South Africa is significantly more cost-effective than markets such as Poland and Malaysia.

Initiatives such as the GBS Incentives and cost management strategies aimed at attracting and retaining international clients have also made the country comparable with locations such as Jamaica, Egypt and the Philippines, which are our main competitors.”  

Advancements in infrastructure

She said provincial and local governments are actively working to develop additional business locations outside the main urban centres (Tier 1 and Tier 2 locations), with the Eastern Cape and Gauteng.

The Eastern Cape Development Corporation is piloting projects in Gqeberha and East London, while Gauteng has introduced its Township Economic Regeneration Plan.

“Critical infrastructure developments are underway, including a plug-and-play BPO park in the COEGA Special Economic Zone and expanded broadband access to key locations.

“By partnering with community facilities, South Africa is transitioning towards hybrid work models that inclusively accommodate work-from-home setups.”

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