GBS WORLD NEWS | WEEK 5 | JUNE 2024
In Cape Town, South Africa, Sigma Connected, a UK-based outsourcing specialist, is establishing its first international customer service operation from a township (or Tier 3 location). In partnership with one of its clients, E.ON Next, 100 contact center employees are being relocated to its Mitchells Plain office, which previously has only catered to domestic customers. The relocation is expected to improve employees’ work–life balance by reducing travel time and costs.
U.S.-based broadband connectivity company, Charter Communications, has announced further layoffs, this time impacting over 1,000 employees as it continues to consolidate its call centers. The closures affect Spectrum-branded centers in Ontario, California (452 jobs), Rochester, Minnesota (352), Austin, Texas (232), and Columbus, Ohio (175). Despite offering relocation and severance benefits, this move contradicts Charter’s 2017 promise to create 20,000 jobs.
Over in Romania, according to CGS Romania, the country’s BPO market is projected to grow over 30% in the next five years, reaching nearly US$500 million from an estimated US$375 million in 2024. The growth is attributed to Romania’s well-educated workforce, favorable tax regime, and strategic investment appeal. Eastern Europe, including Romania, has become a key BPO hub due to low operational costs and stability amid global challenges, drawing significant investor interest.
In Japan, SoftBank, the tech giant and holding company, has developed an AI filter that transforms angry customer voices into softer tones to reduce stress on call center staff. This initiative aims to combat customer harassment or “kasu-hara,” a growing issue in Japan where nearly 47% of service sector workers reported experiencing customer abuse. Developed in collaboration with Tokyo University, the technology is set for implementation in 2025 and aims to improve staff wellbeing and retention.
Rocketlane, a SaaS startup specializing in professional services automation, has raised US$24 million to integrate AI into its platform. The company, headquartered in Utah and Chennai, expects this integration to enhance customer feedback analysis. The new funding will support U.S. expansion, European entry, and AI-driven features like conversational analytics and document automation.
A recent report by Research and Markets has highlighted the impact of geopolitical tensions on global supply chains in the nearshoring industry. The report explores how companies are shifting to nearshoring to enhance supply chain resilience and reduce disruption risks. Key growth areas include techshoring, factory management solutions, and collaborative sourcing. The report identifies emerging regional hotspots and new business models, such as on-demand procurement and distributed manufacturing, offering insights into future opportunities and trends in nearshoring.
