4 Reasons Why Europe Considers South Africa an Attractive Option for Training Development and Delivery Outsourcing

Written by Lyndsey Martin

The rise of remote work has placed South Africa at the forefront of outsourcing destinations, particularly if you consider the observation of training development and delivery by the Grand View Research. With the global outsourcing market valued at over $90 billion in 2023, South Africa’s business process outsourcing (BPO) sector contributed $2.7 billion (around R60 billion) in revenue. Below are four compelling reasons why European organisations are increasingly turning to South African companies for these services.

1. Cost Savings

Outsourcing to South Africa offers substantial cost savings, with companies typically saving up to 50% on labour and operational expenses compared to Europe. The favourable exchange rate allows businesses to secure high-quality training services for a fraction of the cost. This is particularly attractive for European firms seeking to balance cost reduction with maintaining quality. In 2022, South Africa’s BPO sector grew by 17%, driven by demand from European markets, demonstrating the financial viability of outsourcing to the country.

2. Access to Skilled Resources

South Africa has positioned itself as a global leader in BPO, offering access to a highly skilled workforce. The country ranks 1st in Africa and 12th globally for English proficiency, crucial for training development and delivery. With over 100,000 jobs in the BPO sector, South Africa is home to a wealth of talent, particularly in IT and engineering. Companies such as Amazon and Capita have invested heavily in South Africa, underscoring the global recognition of its skilled workforce. In addition, the country’s BPO market is projected to grow at a compound annual growth rate (CAGR) of 10.1% through 2030, ensuring a steady supply of skilled professionals.

3. Time Zone and Effective Time Management

South Africa’s time zone (GMT+2) offers a significant advantage for European companies. The nearshore benefits allow businesses to collaborate in real time, which is particularly important for time-sensitive training development and delivery. This alignment enhances productivity and allows for quick turnaround times. European firms can also delegate their non-core functions to South African providers while focusing on strategic goals, improving overall time management and operational efficiency.

4. Language and Cultural Compatibility

English is the predominant business language in South Africa, making it an ideal outsourcing destination for European companies. Furthermore, many South Africans are multilingual, with fluency in languages such as Portuguese, German, and French, which adds to the appeal for European organisations. The country’s cultural diversity also ensures sensitivity and adaptability when developing and delivering training programmes to international audiences. This cultural compatibility is a significant reason why South Africa continues to attract top European clients.

Conclusion

South Africa’s competitive pricing, skilled workforce, time zone alignment, and language proficiency make it an attractive destination for outsourcing training development and delivery. The country’s BPO sector, contributing £2.1 billion in revenue and growing rapidly, underscores its value in the global outsourcing market. With a proven track record of high-quality service and cost-effective solutions, South Africa remains an ideal outsourcing partner for European businesses looking to enhance their training capabilities.

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