The South African government has today announced attractive investor incentives for its offshoring sector that will reduce the cost of operations in the country by around 20%. The incentives further bolster the country’s growing offshoring sector by strengthening its cost competitiveness.

The new incentives significantly reduce the cost of offshoring operations for investors whilst providing flexibility in usage and simplifying administration. These incentives may be offset against all types of expenditure at the discretion of the investor. The incentives are paid over a period of three years for every new offshore job created and maintained in the country. In addition, a graduated bonus incentive amounting up to 30% is available for investors that exceed certain job creation targets.

Dr Rob Davies, Minister of Trade and Industry, stated: ‘The South African government is deeply committed to the BPO sector and has put in place attractive incentives through its government Assistance and Support Programme (GAS). It has also supported various talent development initiatives to support the growth of the industry. We are confident that investors will be excited by the new incentive scheme which considerably strengthens South Africa’s attractiveness as an offshoring destination.”

South Africa’s offshoring offer is based upon high quality English-speakers, strong cost-benefits and a world class environment. South Africa benefits from a strong linguistic and cultural affinity with the UK ensuring a first-rate, friendly customer connection. Globally, the country has the third largest English-speaking talent pool among offshore locations and a growing talent supply of 350,000 graduates annually. For this reason five of the Top 10 global contact centre suppliers are already in South Africa. It is estimated that South Africa’s offshoring sector will grow to 40,000 jobs by 2015.