Podcast ¦ CX Files: PANEL In Face of Stagnating Favorability Ratings, What’s Next for South African Offshore CX

Key Takeaways

1. South Africa’s outsourcing favorability ranking dropped from first place in 2022 to third in 2025, tied with Poland and behind India and the Philippines.

2. The decline reflects significant improvements in other regions, particularly India and the Philippines, rather than a reduction in South Africa’s capabilities.

3. South Africa retains strong competencies and a mature BPO market.

4. The country effectively managed operational challenges during the COVID-19 pandemic, demonstrating robust remote work integration.

5. There is strong demand for South African BPO services in key markets like the US and Australia.

6. Data security and compliance concerns remain significant areas where South Africa needs to better communicate its strengths.

7. The perception of load shedding as a problem has lessened but still requires active management.

8. A large number of BPO providers in South Africa can cause market confusion, making unified messaging essential.

9. Emerging competitors in Africa and the Caribbean present alternative outsourcing options, encouraging diversification.

10. The industry focus has shifted from labour arbitrage to customer experience, technology integration, and service quality.

11. South African BPO providers must reinvent their value propositions to meet modern buyer expectations.

12. Collaboration among industry players can strengthen collective branding and enhance South Africa’s attractiveness as an outsourcing destination.

Key Statistics

• South Africa slipped from first to third place in offshore favorability rankings over three years.

• It ranked highest among US survey respondents for favorable offshore locations.

• The current ranking places South Africa tied with Poland.

Key Discussion Points

1. South Africa’s drop to third place prompts analysis of market dynamics and competitive positioning.

2. The country’s enduring strengths in the BPO market are highlighted despite ranking decline.

3. COVID-19 underscored South Africa’s ability to maintain service delivery standards under pressure.

4. Data security and compliance are critical for buyer confidence.

5. The maturity of South Africa’s BPO capabilities is compared with emerging African and Caribbean competitors.

6. Concerns about “resting on laurels” relate to promoting outdated value propositions.

7. The need for refreshed marketing strategies to position South Africa competitively on the global stage.

8. Agent empathy and customer care are critical differentiators for South African BPO services.

9. Businesses are increasingly viewing other African countries as supplementary options to South Africa.

10. South Africa’s historical prestige must be leveraged against emerging market disruptions.

11. Unified collaboration among South African BPOs is essential to revitalize global appeal.

12. Modernizing the BPO narrative to reflect technological and customer experience advancements is crucial for future competitiveness.

Podcast Description

In this episode of The CX Files, host Peter Ryan is joined by three industry experts to discuss the evolving landscape of South Africa’s BPO market. Following a recent survey revealing a decline in the country’s offshore outsourcing favorability rankings, the conversation explores the factors behind this shift, competitive pressures from other countries, and the urgent need for South Africa to reinvent its global value proposition. The guests share insights on sector evolution, operational challenges, and future growth opportunities—particularly through collaboration and effective communication of South Africa’s strengths to potential buyers.