For 31-year-old accountant Esethu Dywili, South Africa’s fast-growing outsourcing industry has transformed not only his career but his family’s future. After several years working for an international financial services firm in Johannesburg, Dywili has been able to build a new house for his parents and siblings in the Eastern Cape.
“When you work for a firm that earns in US dollars or British pounds, you can earn a salary that many local firms can’t match,” he said.
A Growing Industry Amid High Unemployment
South Africa’s outsourcing sector, covering finance, IT, customer service, and data analytics, is expanding rapidly even as the country battles one of the world’s highest unemployment rates at around 33 percent.
The growth has been driven by global demand for cost-effective professional services, particularly from the UK and Europe, where companies face rising labour costs and talent shortages. South African salaries are roughly half of UK levels, giving the country a competitive advantage.
Strong English proficiency, a skilled workforce, and a time zone closely aligned with Europe have also made South Africa a preferred destination for outsourcing.
“South Africans bring incredible energy and work ethic,” said Simon Wheeler, a Durban-based chartered accountant working in the industry. “We give 110 percent to everything. This industry now gives people a chance to gain international experience without leaving home.”
Economic Impact and Job Creation
According to figures from the Western Cape government, the outsourcing industry contributes about 35 billion rand ($2 billion) to South Africa’s economy annually. The province alone hosts around 60 outsourcing companies employing more than 70,000 people, a dramatic rise from fewer than 2,000 offshore jobs 15 years ago.
“We added about 10,000 jobs last year and another 10,000 this year,” said Nezaam Joseph, Chief Director of Economic Development in the Western Cape. The province supports the sector through a training subsidy programme that funds skills development for thousands of young people each year, with about 80 percent finding permanent employment.
Global Partnerships
British accountancy firm Cooper Parry turned to South African outsourcing partners during the pandemic and has since opened its own office in the country, employing 60 staff, including Dywili and Wheeler.
“The South African teams have become an extension of our UK workforce,” said Gemma Edwards, a partner at Cooper Parry. “We work together as one global team.”
UK call-centre company Ventrica, which serves major brands such as Clarks and McDonald’s, also opened an operation in South Africa in 2022. Around 30 percent of its employees are now based there, with plans to expand to 40 percent.
Ventrica’s CEO Iain Banks said the trend reflects South Africa’s growing importance in global outsourcing. “South Africa is booming, but as costs eventually rise, the next wave may move to other African nations such as Kenya, Ghana, or Nigeria,” he said.
Challenges and the Road Ahead
Despite the success, experts warn that the country’s education system may struggle to keep up with the sector’s pace. Jee-A van der Linde, a senior economist in Cape Town, said South Africa’s uneven quality of education and infrastructure could limit broader participation.
“There’s a risk that only urban hubs like Johannesburg and Cape Town will benefit,” he said. “Rural areas lack reliable internet access, which makes remote work difficult.”
Still, optimism remains strong. The Western Cape government plans to collaborate more closely with universities to tailor curricula to industry needs, ensuring more graduates are employable in the sector.
For Dywili and many young South Africans, outsourcing offers more than just a paycheck. It represents hope and possibility in an economy where opportunities are scarce.
“Young people here have felt discouraged for so long,” he said. “Now we see a path forward, degrees that lead to real jobs, careers that let us support our families, and a chance to build our futures.”
