Esethu Dywili, a 31-year-old accountant from Johannesburg, says his career in South Africa’s fast-growing outsourcing sector has transformed his life and lifted his family from poverty.
A few years ago, Dywili was earning modest wages in local firms, but today, his international clients pay him in foreign currencies such as the US dollar and British pound. That difference has allowed him to build a new home for his parents and siblings in the Eastern Cape.
“When you work for a company earning revenue in stronger currencies, they can pay competitive salaries that local firms simply cannot,” Dywili told The Africa Standard.
His story mirrors that of thousands of young South Africans finding hope and prosperity in the country’s booming outsourcing industry. The sector now employs tens of thousands and contributes billions to the national economy.
Outsourced service companies perform key business functions for foreign firms, often in Europe or North America. These include call centers, accounting, IT, software development, and digital marketing.
South Africa has joined the ranks of outsourcing powerhouses like India and the Philippines by capitalizing on its highly educated workforce, English proficiency, and cost competitiveness.
The nation’s outsourcing industry now generates about 35 billion rand annually, according to data from the Western Cape government. That is equivalent to roughly 2 billion US dollars and marks a steep rise from just a few years ago.
Firms in the UK and elsewhere have increasingly turned to South Africa for accounting, customer service, and tech support due to worker shortages and cost-saving goals. Salaries in South Africa are roughly half those in the UK, allowing firms to maintain quality while cutting expenses.
Simon Wheeler, a Durban-based chartered accountant, says South Africans’ drive and energy are part of what makes the country so attractive to global companies.
“There’s a real work ethic here,” Wheeler said. “We give 110 percent. South Africans are go-getters, and this industry gives them a chance to gain international experience without leaving the country.”
Western Cape officials say they saw the potential early. Six years ago, the provincial government began offering training subsidies worth 3,500 rand per month to help prepare local talent for international clients.
Nezaam Joseph, Chief Director of Economic Development in the Western Cape, says that about 4,500 people a year have gone through the program, with 80 percent landing full-time jobs.
“We added about 10,000 jobs last year and another 10,000 this year,” Joseph said. “Fifteen years ago, there were fewer than 2,000 offshore jobs here. Today, more than 70,000 people are employed in the Cape alone.”
British accountancy firm Cooper Parry is one of many that have tapped into South African talent. During the Covid-19 pandemic, it outsourced hundreds of finance roles to South African firms Makosi and PKF Octagon.
The company was so impressed that it has since opened its own office in South Africa, employing 60 local staff members, including Dywili and Wheeler. “They have become an extension of our UK teams,” said Gemma Edwards, a partner at Cooper Parry. “We work as one global team.”
Call center company Ventrica, which services brands like McDonald’s and New Look, also expanded into South Africa in 2022. About 30 percent of its staff are now based in the country, with plans to grow that to 40 percent.
Ventrica’s Chief Executive Iain Banks said cost efficiency is one factor, but talent quality is another. “Clients appreciate the professionalism of South African teams,” he said. “It’s not just about saving money.”
However, economists warn that rapid growth comes with challenges. Jee-A van der Linde, a senior economist based in Cape Town, told The Africa Standard that the education system may struggle to meet the sector’s growing demand for skilled labor.
“The quality of education remains a major obstacle,” van der Linde said. “It’s also uneven across provinces, and poor internet connectivity in rural areas limits access to remote work opportunities.”
He cautioned that unless South Africa addresses these disparities, the benefits of outsourcing could remain concentrated in urban hubs such as Johannesburg, Durban, and Cape Town.
Joseph said the government is working with universities to align curriculums with the needs of outsourcing employers. He believes that closer collaboration could boost both job creation and salary levels in the coming years.
But that could also raise questions about South Africa’s long-term cost advantage. If wages rise too quickly, global firms may look elsewhere on the continent for cheaper labor.
Ventrica’s Banks predicts that outsourcing will continue expanding across Africa. “We’re already seeing emerging hubs in Kenya, Ethiopia, Ghana, and Nigeria,” he said. “South Africa is booming now, but the next wave will spread across the continent.”
For workers like Dywili, though, the current boom represents a long-awaited turning point. “Young people here have felt demoralized by limited opportunities,” he said. “But this industry gives us hope and a chance to build our futures.”
As South Africa’s outsourcing sector continues to thrive, it is being hailed as the country’s newest economic goldmine, a model for sustainable job creation in a nation long plagued by unemployment.
