OUTSOURCING: Reduced Telco Costs Drives BPO
Recent Western Cape Business News
Reduction in telecoms costs and improved quality of voice services are key contributors to the sustainability of the BPO industry, according to BPeSA W Cape's Fagri Semaar.
In a recent trade mission to the UK, South Africa was highlighted as a prime BPO destination, with the only real areas of concern being the cost of telecommunications and latency rates of calls.
With the arrival of SEACOM in 2010 and the emergence of alternatives to Telkom, telecoms costs have continued to fall; making South Africa a more attractive investment destination for foreign business.
“Over the past three years telecoms costs have come down by around 40%, which has had a positive impact on various industries; with cost baskets related to telecoms falling from between 18 and 22% to just 8%,” says Semaar.
Semaar believes that telecoms is very important, especially for a global industry where every cent counts. “We need to constantly look at ways to not only reduce costs, but to improve the quality of our services.”
“Despite the cost reductions, South Africa is still a relatively expensive destination when it comes to telecommunications. The quality and reliability of lines to international countries is good, but our latency rate can be reduced. With SEACOM and the imminent arrival of the West African Cable System (WACS) in the first or second quarter of 2011, our offering to international destinations will become more competitive,” adds Semaar.
In another venture which is set to benefit the BPO sector, the city of Cape Town recently opened the first part of its 360km fibre network; which will link all its main municipal buildings, allowing the city to carry its own voice and data traffic.
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