GBS WORLD NEWS | WEEK 1 | SEPTEMBER 2023

The Information Technology Industry Development Agency (ITIDA) has announced that SoluGrowth has become the first South African outsourcing company to invest in Egypt. The company achieved a 36% growth rate in its fiscal year in March 2023, and made an announcement this week that it will be opening a new office in Cairo. This further cements Egypt’s position as a top choice for global outsourcing operations, due to its location, skilled talent pool, and cost-competitiveness.

American department store chain, JCPenney, that operates 664 stores, has created a self-funded reinvestment plan of more than $1 billion to enhance customer experience (CX) across its physical footprint and improve digital capabilities. The reinvestment, which will also focus on long-term growth and boosting customer loyalty, comes on the heels of the retailer launching JCPenney Beauty, store refreshes and improved digital shopping.

Meanwhile, a Tokyo-based cloud-service startup, Josys, has raised US$93 million to expand in areas across the globe. Its expansion plans include areas in South Korea, the US, and Southeast Asia. The start-up, which launched in February 2022, plans to double its headcount to 240 by the end of this year. Long-term, further developments are planned, as the CEO wants to provide outsourcing services in over 100 countries by the end of 2025.

UK outsourcing firm, Capita Managed IT Solutions, has reported a revenue fall of £20 million. The business, a wholly owned subsidiary of Capita plc, has also seen decreases in its operating profit and workforce size, which has resulted in Capita plc’s plan to liquidate the subsidiary within 12 months’ time.

Over in the US, a communications platform-as-a-service company, Bandwidth Inc., has announced a partnership with Google and Cognigy. The partnership was set up to collaborate on launching a new AI tool: AIBridge. The tool is expected to ensure faster call resolution and more streamlined cloud communications in their call centers, resulting in improved CX and operational efficiency.

Headquartered in Paris, global digital business services company, Teleperformance, has been recognized with the 2023 European Competitive Strategy Leadership Award. The recognition, awarded by Frost & Sullivan, stems from Teleperformance’s CX and digital solutions offerings to customers in a wide range of industries, such as insurance, banking and financial services, telecoms and automotive.

Globally, the CX industry is expected to increase to a value of US$173.68 billion by 2029 – a jump from its 2022 value of US$90.87 billion. The findings have stemmed from a new report published by ResearchAndMarkets, and it also offers insights into the causes behind this surge in value, such as CX outsourcing and technological developments.