After India, now South Africa has emerged as an alternative outsourcing destination. As a result, now already disturbed Indian IT and BPO outsourcers are to adjust with vendors in South Africa.
 
Indian vendors are facing challenges due to the cost savings between South Africa and other low-cost destinations, like India, which have greatly deteriorated in the past four years, as proved in a study by Everest Group. Nikhil Rajpal, principal, Everest Group, said that South Africa serve as a significant opportunity for global financial services firms eyeing an offshore footprint expansion.
 
Moreover, observations say that, savings gap between Johannesburg and Bangalore, which has decreased from 30 per cent in 2005 to 15 per cent in 2008, could further fall to eight per cent in 2012. Savings narrow mainly due to currency volatility, according to Business Line .
 
Even though, most of the currencies of the world have appreciated on average, over the past three years, the South African currency has depreciated. Brian Whittaker, CEO of South African-based Business Trust said that BPO is one of the priority sectors for growth in South Africa.  X