Johann Kunz, MD,
Fusion Outsourcing

The South African government has long mooted the country as a Business Process Outsourcing (BPO) destination, but despite this, not much has happened in this sector in recent years. This is now starting to change, as the local business landscape alters.

According to Johann Kunz, MD of Fusion Outsourcing, the recent reductions in telecoms costs have had a positive impact on SA’s BPO potential. Furthermore, he says, there has been a softening of the rand against major currencies such as the dollar, pound and euro, while government’s BPO incentive scheme is also starting to pay dividends.

“The combination of these factors has now given the local BPO sector a value proposition that is within 10% of that offered by the Philippines and has also brought it closer to India’s offering. We are certainly starting to see clients who previously only outsourced to India looking to migrate components of their business - specifically ‘voice work’ - to SA instead,” he says.

International call centre outsourcing

“From Fusion’s perspective, we are definitely seeing an increase in the number of international BPO clients we are securing. I believe that at least half the business we do this year will be international work. This is a big win both for our company and for SA as a whole.” Also, there is increased awareness among local companies of the value BPO will deliver.

Kunz says that there are some knock-on effects to this increase in international work. For one thing, he says, local contact centre businesses now need to comply with international best practices. He adds that the financial landscape for local outsourcers has also drastically altered. In the past, organisations would operate on a per-seat or per-head cost, whereas now the model has changed to a productive hour or minute cost, inclusive of risk and reward structures.

“Fusion is highly focussed on adapting to these new international requirements and best practices, and we have changed and are in the process of changing various processes, procedures and methodologies. As part of this alignment to international best practices, Fusion has established a transformation team that is looking at aspects of process optimisation, specifically to improve the customer journey, simplify processes and reduce costs.” He says the company is also in the process of introducing Lean Six Sigma and other best practice models for some of its international clients.

Business Process Outsourcing in South Africa

“The new pricing models, the transformation approach and the implementation of new standards are some of the knock-on effects the contact centre industry is experiencing as a result of South Africa becoming a more popular BPO destination,” continues Kunz. According to him, South African companies are also very astute and those that outsource are well aware of these international requirements and practices and demand this as part of their outsource strategy.

Of course, he adds, the above means little unless one has the people to make the business work. To that end, suggests Kunz, Fusion runs a registered Further Education and Training College for agents and team leaders. The college utilises Fusion’s own material, which is developed in line with SETA guidelines and aligned to NQF standards.

For more specialised training such as senior management development, Fusion has partnered with top universities and training institutes. Considering the changing role of contact centres in today’s world, Kunz says that many of the current changes in the industry are being driven by clients – both locally and internationally. Amongst these new aspects in demand is the rolling out of multimedia skills, such as those required for the Web Chat and social media environments.

“While the requirement for these skills is presently fairly small in SA, it is certainly increasing all the time. This is one of the biggest changes impacting the call centre industry today. Where in the past, an agent needed a good neutral accent and the ability to speak well, agents in the near future will be judged on their interactive computer and social media skills. Fusion has therefore had to change its recruitment methodology and look at new agent profiles when hiring employees for these services.”

“Fusion is of the opinion that the alignment of local BPO services with international best practice and requirements will not only enhance the local expertise and assist in developing a mature local BPO industry, but will also make South Africa more attractive as an international BPO destination”, Kunz concludes.

[Source: Brainstorm Magazine]