Samantha-Jane Gravett | Director | Robert Walters Recruitment | mail me |
60% of business leaders say the country is the most attractive location for offshoring. South Africa (SA) is increasingly becoming a preferred global shared services hub location for international companies seeking to offshore or set up shared service centres.
New data highlights that companies are increasingly viewing the country as a strategic option. They aim to optimise costs and tap into a highly skilled workforce. These insights further confirm SA as a leading destination for shared services and global business expansion.
Why SA is a leading destination as a global shared services hub
Offshoring, the relocation of business operations or services to another country, has become a key part of many companies’ global strategies.
In our recent survey, 60% of business leaders ranked SA as the most attractive country for offshoring. It surpassed countries like India (10%), the Philippines (10%) and Eastern Europe (19%).
While business leaders still cite access to skilled talent (41%) and retained earnings (39%) as the top reasons for offshoring, SA offers added advantages. These include strong English proficiency, time zone alignment with major markets and a growing reputation for business and tech services. All of these factors reinforce SA as a leading destination for offshoring excellence.
Key sectors driving offshoring in SA
Industries that have shown notable growth in offshoring activities to SA include Technology and IT. This sector alone accounts for 53% of new roles. Customer service and support follow at 18%, with finance and accounting at 20%, and HR and recruitment at 9%.
We are seeing a strong pipeline of international businesses that are establishing operations in SA. This is particularly evident in tech and support functions.
SA offers an agile, highly capable workforce that aligns well with global business hours and standards. As more organisations strive to build resilience, agility and efficiency into their operating models, SA as a leading destination continues to gain global traction.
The broader impact on global job markets
Offshoring has been found to influence job markets globally. In fact, 63% of business leaders agree that it encourages upskilling in home markets. Additionally, 23% believe it creates global job competition. While these factors highlight the competitive nature of offshoring, they also reflect a broader trend.
This trend involves global talent mobility, where businesses tap into regions like SA for specialised skills and services. As digital transformation accelerates and companies reassess the future of work, the trend towards offshoring and nearshoring is expected to grow.
SA stands out for its combination of skilled talent, strong infrastructure and alignment with international business practices. This makes SA as a leading destination not just a claim but a measurable reality for global capability building.
