NIH Consulting provides innovative IT services in South Africa
Contact centre

As staffing costs rise and competition for customer spending increases, organizations need cost-effective tools to pro-actively manage the customer engagement process, improve customer service and reduce staff costs.  Our contact centre solutions include software that connects and manages customer interactions across multiple media types that originated from almost any device.  Unified reports, both real-time and historic give managers the information they need to optimize agent performance and protect the company’s reputation.
 
Customer interactions are quickly moving from phone calls to text-based
conversations. We deliver software with new tools such as screen recording
to supplement call recording, assuring efficient agent performance and
maintaining complete records of every transaction.  Multimedia skills-based
routing and survey tools assure interactions are handled effectively.
 
Contact Centre Solutions Advantages:
  • Field-proven in large, multi-site deployments
  • WebRTC support ensures customer access from any device
  • Standards-based integration simplifies multivendor deployments
  • Supports integration with legacy PBX platforms
  • Deploy on premises or acquire as a service from the Cloud
The main advantage that business process outsourcing offers a company is flexibility. By outsourcing non-core and administrative functions, a company can better allocate resources and time to its core competencies, such as customer relations, product leadership or operational excellence. A business that is able to perfect its core operations develops a competitive advantage over competing businesses in its industry.

BPO offers businesses the opportunity to access the latest technological resources that they might not otherwise have access to. BPO partners and companies are constantly working on improving their processes by adopting the most recent technologies and practices in order to excel in a highly competitive environment.

Since the U.S. corporate income tax is one of the highest in the developed world, U.S. companies benefit from outsourcing operations to countries with a lower income tax, because businesses pay the tax rate of their host country. This serves as a form of cost reduction without having to sacrifice quality for a company that outsources some of its business operations. The business also saves expenses if it outsources to a location where in-house labor costs are significantly lower than its home country’s or city’s costs.

Other benefits of business process outsourcing include quick and accurate reporting, improved productivity, the ability to reassign resources, increase in organizational growth due to capital and asset expenditures not required, expansion of business’ global presence and more.

While there are many advantages of BPO, there are also disadvantages. A business that outsources its business processes may be prone to data breaches, communication issues that delay project completion, underestimating running costs and overdependence on BPO providers.​​

Business Process Outsourcing (BPO)

Business process outsourcing (BPO) is a method of subcontracting various business-related operations to third-party vendors. When business process outsourcing began, it applied chiefly to manufacturing entities, such as soft drink manufacturers that outsourced large segments of their supply chains. However, it is now applicable to the outsourcing of services.

Many businesses, from small startups to large companies, choose to outsource processes as new and innovative services are being offered in an ever-changing, highly competitive business climate. Two areas in which companies adopt business process outsourcing are in the back office and front office. People who work in the back office are typically tasked with internal business functions, such as logistics, collections and receivables or procurement. Back office outsourcing refers to contracting a company’s core business operations — accounting, payment processing, IT services, human resources, regulatory compliance, quality assurance, etc. — to well versed professionals who can ensure that the business runs smoothly.

Examples of commonly outsourced front office tasks include customer-related services like tech support, inbound and outbound sales, trading and marketing.

A business has multiple BPO options, depending upon whether it contracts its operations within or outside the borders of its home country. Business process outsourcing is considered offshore outsourcing if the contract is sent to another country where there is both political stability and lower labor costs or tax savings, for example, a U.S. company using an offshore BPO vendor in Singapore. BPO is referred to as nearshore outsourcing if the job is contracted to a neighboring country, for example, a U.S. company using a nearshore BPO vendor in Canada. Another option is onshore outsourcing, or domestic sourcing. This is BPO contracted within the company’s own country, although the vendors may be located in a different city or state, for instance, a company in Boston using an onshore BPO vendor in Philadelphia.

Because BPO often depends on necessary technology/infrastructure that allows external companies to efficiently perform their roles, it’s frequently referred to as information technology-enabled services (ITES).

The South African BPO Story

Competitive Advantage

South Africa has many factors working in its favour, including:
World-class service levels of call centre staff.
  • A broad base of management and service provider expertise, coupled with extensive financial services expertise, particularly in insurance, mortgage and loan processing and collection.
  • Time-zone compatibility with Europe.
  • High rates of fluency in English, coupled with neutral English accents that are easily understood in Western markets.
  • A favourable exchange rate.
  • Strong government support.
  • State-backed incentives, such as start-up and expansion grants and discounted telecommunications prices.
  • An advanced and growing telecommunications industry. The government is taking steps to ensure cheaper and more widely available bandwidth capacity, which will allow cheaper international phone calls. Major projects are also under way to lay submarine fibre-optic cables along both the east and west coasts of Africa to boost the continent’s connection with the rest of the world.
  • World in one country - International companies that have already chosen South Africa as a BPO destination include IBM, Fujitsu Siemens, Lufthansa, Virgin, Sykes, Avis and the Car Phone Warehouse.

South Africa’s commitment to the BPO industry was underscored in 2007 by the decision to build a R125-million, 1 500-seat call centre at the Coega Industrial Development Zone outside Port Elizabeth in the Eastern Cape.

The BPO Park covers five hectares in Coega’s business service precinct and includes training facilities and recreational space. The managing company said the space was designed to cater for various scenarios and could accommodate numerous different investors.

Other recent investments include:
  • In May 2008, oil multinational Royal Dutch Shell opened a call centre in Cape Town. The centre will service Shell’s customers in Belgium, Luxembourg and the Netherlands, with native Afrikaans-speaking operators trained to converse in Dutch and Flemish.
  • In November 2007, US-based business process outsourcing giant TeleTech started  construction on its first facility on the African continent, at the Old Match Factory in Salt River, Cape Town


Business process outsourcing (BPO) and offshoring is a major global trend and the industry, worth an estimated US$130-billion a year, has an expected annual growth rate of about 50% for the next five years.

BPO involves relocating business processes that a company usually performs in-house to a third-party service provider, such as a customer care or call centre, to carry out on behalf of the company. Outsourcing becomes offshoring when the third-party service provider is located overseas.

The BPO industry’s focus sectors include financial services, insurance and telecommunications, with outsourced processes including after-sales services, data capture and conversion, accounting, benefits administration, human resource functions, and website design and development.
Identified as a key sector in the government’s strategy to boost the country’s economy and create employment, business process outsourcing and offshoring is forecast to create 25 000 direct and 75 000 indirect jobs in South Africa and contribute up to R7.95-billion to the national economy by 2009.

Information technology (IT) outsourcing is also a growing business in South Africa, with the diversity of the local market, first world know-how and a developing country environment making it an ideal test lab for new innovations.

IT outsourcing makes up more than a third of the R30-billion IT services market, according to a study in 2008 by research and advisory firm IDC, taking up the largest share of all IT service categories.

Gartner, the international research group, rates South Africa as one of its top 30 software development outsourcing destinations, with 2007 research putting it on par with Israel in the Europe, Middle East and Africa region, and next to Australia and India globally.

​For international firms, South Africa slots in between near-shore locations such as Canada, Mexico or Eastern Europe, which offer close proximity as well as cultural affinity to domestic markets, and more traditional offshore locations, such as India and the Philippines, that offer cheap labour.

CONTACT US NOW!

HOURS OF OPERATION

LOCATION

Evans Road
Olivedale, 2158
Johannesburg, Gauteng
South Africa

Monday to Friday:
08H00 - 17H00

We'll be happy to answer any questions