The SA job sector that is actually growing: global business services

After the bad news about unemployment on Tuesday, there is good news about one sector that is contributing to jobs growth: the global business services sector, that boomed in 2024, creating thousands of jobs for local youth.

According to the latest Business Process Enabling South Africa (BPESA) Global Business Services (GBS) Sector Job Creation Report, the industry added 6 290 new international jobs in the third quarter of 2024 and contributed $101 million (approx. R1.8 billion) in export revenue, reinforcing its role as a powerhouse for economic and social transformation. 

From January to December last year, the sector added 20 518 new international jobs, amounting to $328 million in export revenue. Youth jobs accounted for 92% of new hires in the third quarter and 90% for the full year of 2024.

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Global business services surging in South Africa

Reshni Singh, CEO of BPESA, says the global business services sector continues to surge, delivering significant job growth and boosting the country’s export revenue.

“A key driver of this growth is impact sourcing, an initiative that actively recruits individuals from marginalised communities, offering life-changing employment to young South Africans from low-income backgrounds.

“These inclusive hires made up an impressive 42.8% of new jobs created for the quarter, helping individuals to secure stable careers while proudly representing South Africa’s talent on the global stage.

Singh says youth employment remains the backbone of the sector, with 92% of new hires people between the ages of 18 and 34 years. Most positions (71%) were frontline, voice-based contact centre roles, addressing global demand in sectors such as utilities and energy (30.54%), retail and e-commerce (18.30%) and telecoms (13.73%).

She points out that the United Kingdom remained the largest market for outsourced services during the third quarter of 2024, accounting for 48% of new jobs, with the US contributing 32% of new hires.

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Skills development part of global business services

“Beyond job creation, the sector is prioritising skills development, with 26 876 workers trained between October and December 2024. BPESA is spearheading initiatives to reskill and upskill employees through career awareness programmes, leadership bootcamps and work-seeker support services, ensuring South African workers remain globally competitive.” 

Singh says the broader economic impact of the sector is remarkable. “With the sector growing three-fold in just five years, South Africa is now firmly positioned among global offshore service leaders. The continued growth and job creation are a testament to our industry’s commitment to building careers for South Africans, especially our youth and people from marginalised communities.

“We are encouraged by ongoing discussions with the dtic regarding a revised incentives package for the industry and remain confident that with the right level of support the sector will drive further economic upliftment while showcasing South Africa’s distinctive flair in servicing international customers.”

Singh says with strong government and private sector support, favourable business conditions and a skilled, empathetic workforce, South Africa’s global business services industry is proving its mettle on the global stage, ensuring that the country remains a preferred destination for outsourced services worldwide.”

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