Launch of Africa Global Business Services (GBS) Benchmarking and Market Report
• Africa’s GBS offshoring market is estimated to be worth $8.3 billion and will rise to US$11.7 billion by 2023.
• Monthly costs of contact center agentscin Africa can range from US$546 to as little as US$175
• Contact center managers can cost a maximum of US$2,200 to a minimum of US$406 per month.
The African GBS offshoring market is expected to reach US$11.7 billion by 2023 from $8.3 billion in 2021. Collectively, the domestic and international GBS/BPO market on the continent generates $15.1 billion in revenue and is expected to rise to $19.8 billion by 2023, according to the 2021 Africa Global Business Services (GBS) Benchmarking and Market Report by Knowledge Executive.
The key report findings and highlights were released during a global webinar on August 26, 2021 hosted by GBS.World and Genesis Global Business Services | Knowledge Executive (GKX). View the webinar recording here.
Buy-side demand These findings, along with numerous other insights emerged in the report’s in-depth analysis, which stems from the mixed methods research methodology.
To understand buy-side demand and investment priorities, the research team conducted 360 global interviews. This included over 140 interviews with global enterprise executives from organizations in Australia, Canada, Germany, France, the UK and the US that outsource, or plan to outsource, to Africa. These executives were asked to rank and rate each African country, including service level delivery across various key business process areas. As a result, the top 10 countries were ranked according to their final scores and also placed in three categories: High Performer, Proficient and Capable.
In addition, to plot the supply-side, profiling surveys were conducted on over 500 GBS service providers and delivery centers across 19 African countries. The 19 African country profiles represent a mix of maturing, emerging and nascent GBS/BPO locations in Africa that now serve as key locations for global and local investors and buyers.
Key finding: low labor costs
According to the report, the most prolific value proposition across all African GBS locations is the continent’s extremely low labor costs.
The monthly cost of a contact center agent in Africa can range from US$546 to as little as US$175, while a contact center manager can cost a maximum of US$2,200 to a minimum of US$406 per month. Overall, enterprises in global source markets can save between 60 to 86% in labor costs when outsourcing to African offshore service providers.
Investing and buying on the continent continues to be a venture filled with potential and undiscovered returns. When combined with attractive investment incentives and support, the business environment for GBS buyers and investors in Africa is conducive, rapidly growing and maturing.