Negative perceptions/uncertainty regarding gating criteria and issues such as HIV, BEE and crime
Exchange rate volatility
The actions taken
to exploit the opportunity have been largely coordinated through a partnership between the dti and the Business Trust.
under the direction and leadership of His Excellency, the Hon. Minister Mandisi Mpahlwa, MP. (The Minister of Trade and Industry and Director of the Business Trust).
The partnership also include key private and public sector decision-makers, namely:
Ms Thoko Didiza (Minister of Public Works and Director of the Business Trust),
Ms Elizabeth Thabethe (Deputy Minister of Trade and Industry),
Mr Derek Cooper (Chairman of Standard Bank and Director of the Business Trust) and
Mr Eddie Funde (Chairman of the SABC and Chairman of the industry body, Business Process enabling South Africa-BPeSA).
The GAS programme was designed to support the development of the BPO&O sector, through:
Providing incentives to enhance the competitive advantage
Close the cost gap for BPO&O operations when compared to other BPO destinations such as India and Philippines
Address market failures that result in the high cost structure
Approved in December 2006 by Cabinet
Full roll-out in March 2007
The objective of the investment incentive is to attract BPO&O investment that creates employment opportunities.
The grant is provided depending on the value of qualifying investment cost and employment creation.
The grant ranges between R37,000 and R60,000 per seat and is offered to local and foreign investors establishing projects that aim primarily to serve offshore clients.
Benefits
INVESTMENT GRANT
Talent Development
The most critical element of a distinctive value proposition – the ultimate basis for competition “TALENT AVAILABILITY”
SA starts with a good foundation of trainable people, however considerable training is needed to deepen the talent pool
There is a need for substantial government investment through
Work Readiness Programme known as Monyetla is an initiative between the dti and the Department of Labour
aims to take unemployed matriculants or graduates through a process of learning work-readiness skills.
in its pilot phase aiming to train 1000 learners at a cost of R15 000 each
The Training and Skills Support Grant is directed towards the cost of providing company specific training (as opposed to industry wide training) up to a maximum of R12, 000 per agent.
The incentive grant is over and above the assistance obtained through the Sector Education and Training Authorities (SETAs) and is complementary to the BPO&O Investment Grant.
Previous and proposed initiatives
Previous and proposed initiatives
Marketing
To persuade the best companies to do business in S.A. and remain in S.A by:
Understanding and properly communicating the SA Value proposition.
Encouraging regional and industrial diversity
Ensuring a competitive environment ( one stop shop)
Removing Regulatory obstacles
The initiative straddles both targeted and broad-based marketing.
Targeted marketing focuses on attracting and securing selected high impact foreign investors, who will in turn create a groundswell of other investor interest.
Broad-based marketing encompasses the supporting of government and industry initiatives, to raise South Africa’s BPO&O global profile, with the aim of securing a dominant Tier 2 position.
BPO&O Standards
A set of 3 new standards geared towards service quality
Address Inbound and Outbound Contact Centres and Back-Office Processing Operations standards in four categories:
•Leadership and Customer Service Management
•Human Resource Management
•Operations Management
•Technical Resource Management
SA Bureau of Standards (SABS) is now turning these into national standards
ISO is interested in the standards for the first global standard for BPO&O
BPO in the 2nd Economy
Need to shift from concentration in main Metropolitan areas (JHB, DBN and CT) to ensure equitable distribution of benefit
New designated areas have been identified to direct some investment to depressed communities
