The South African government this week announced the release of offshore investor incentives aimed at reducing the cost of operations, including outsource contact centre operations, in the country by about 20%.

The new incentives hoped to increase the attractiveness of South Africa's business processing offer by significantly reducing the cost of offshoring operations for investors, while also providing flexibility in use and simplifying administration.

Incentives may be offset against all types of expenditure at the discretion of the investors and would be paid over a period of three years for every new offshore job created and maintained in the country.

In addition, a graduated bonus incentive amounting up to 30% is available for investors that exceed certain job creation targets.

It is anticipated that South Africa's offshoring sector, including BPO (Business Process Outsourcing), would grow to 40 000 jobs by 2015.

Trade and Industry Minister Rob Davies said that globally South Africa was the third largest English-speaking talent pool among offshore/outsourcing locations, and already hosted five of the top ten global outsource contact centre suppliers.

"We are confident that investors will be excited by the new incentive scheme, which considerably strengthens South Africa's attractiveness as an offshoring destination," concluded Davies.