A common way of organizations to cope with the persistent pressure to operate cost-effective and retain flexibility is the outsourcing of information technology and related services (Information Technology Outsourcing, ITO) as well as the outsourcing of business processes to external providers (Business Process Outsourcing, BPO).
During the last 10 years, BPO and ITO have become an important part of service industries in South Africa, currently concentrating mainly on the domestic African market. Only a small but increasing portion of deals comes from offshore locations like the UK, continental Europe and Australia.
Nevertheless, analysts see South Africa amongst the top 30 offshoring locations worldwide, recent studies testify South African IT-services are able to compete with international quality-standards and the South African government advertises with a lot of locational advantages.
But the full potential for offshore-services seems to be not yet unlocked. Against this background the aim of our study is to identify the current maturity of the South African BPO and ITO industry for delivering offshore services to Europe and key factors necessary to unlock currently unused potential.