KZNonSOURCE − cresting the BPO wavepoint break

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point breakthe LEADING edge

KZN ‒ Cresting the BPO WaveIn this interview, CEO Magazine talks to William Goldstone, CEO of KZNonSOURCE, a BPO initiative that brings gov-

ernment and the private sector together in a bid to build KwaZulu-Natal’s contact centre industry, creating jobs and

strengthening the province’s economy in the process.

William Goldstone, CEO

How did you come to find yourself in the busi-ness process outsourcing (BPO) arena?

The opportunity that BPO presents for creating jobs in South Africa attracted me to this sector. Depending on what industry you are considering, South Africa has unemployment figures of anywhere from 26 to 34% and the BPO environment presents a great opportunity for government and the private sec-tor to join hands to alleviate unemployment.

I am also attracted to this opportunity because my own so-cial background has taught me the value of becoming involved

in projects and undertakings that can lead to the improvement of communities and the lives of individuals, particularly unem-ployed youth.

How has your background influenced your approach to KZNonSOURCE?

My social background exposed me to the hardships that unemployment can create and as a result I became involved in the trade union movements. This was very insightful because it taught me to recognise the value and impact of a job at both the micro and macro level of the economy.

Ultimately the experiences and influences I was exposed to by trade unionism fuel my personal drive to bring government and the public sector together to establish opportunities for job creation.

KZNonSOURCE is fundamentally a public private part-nership (PPP) and while a lot has been made of these in recent years, they don’t seem to generate the type of momentum that is expected of them. What makes you confident that KZNonSOURCE won’t stumble like other PPPs before it?

I think there are a number of valid criticisms around PPPs and they should be properly considered so that we all learn from mistakes that may have been made. The difference in our case is that the eThekwini Municipality (Durban) took the initiative to provide funding to ensure that the process of job creation and skills development in this sector is launched. This meant, for the first time, that a true PPP was established.

Also, this is important because once government indicates the right mindset around an undertaking of this nature they often prove to be very committed and willing partners. This has further positive spin-offs because the private sector, in this case, has ap-proached the PPP with far greater confidence than they normally would. I believe that this is the case particularly because govern-ment has shown them they are willing to play an active role.

In the case of KZNonSOURCE we have found that the private sector is taking part in all the events that we have initiated, and those events themselves have seen a greater collaboration be-

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tween the private sector and the public sector in driving the crea-tion of jobs and the development of skills.

There are some pretty ambitious job creation targets linked to KZNonSOURCE. I have heard suggestions of 100 000 new jobs. Is this true?

The creation of 100 000 jobs is the target for the country. As a region we have a target of around 20 000 jobs that we want to create within the next three years. During the course of the last year we have created 1 800 jobs and this is based on the initial pipeline we have established in the contact centre industry.

We are confident of reaching these targets because we are very focused in specific markets. KwaZulu-Natal has a huge ad-vantage in English-speaking language skills, and on the strength of that we have separated ourselves from the rest of the country when we position and market ourselves to the English-speaking market internationally.

Which market do you see as holding good potential for South Africa’s BPO services?

There are a number of areas we are focussing on; English-speaking Europe and the Americas – north and south – that have English-speaking components. Within these areas we are target-ing major corporates. At present we are focusing on pharmaceu-tical, logistics, IT & financial services and telecommunications as areas that offer potential.

This approach obviously positions us in a specific area and we’ve started to develop a pipeline of clients in these areas.

We are also alert to what is going on in the market and as a result we adapt and refine our market offering to make the most of opportunities. For instance, in our most recent research we have established that KwaZulu-Natal produces a large volume of the IT skills in the country. However, these IT skills migrate to other parts of the country because we haven’t been able to create jobs locally.

As part of an initiative with KZNonSOURCE and Smart-Xchange we are working to retain those skills in this province. Consequently we have also placed emphasis on IT services as a BPO area in which we can compete.

South Africa seems to be bit of a latecomer to the BPO market and there are some very competitive nations like India playing in this market. What do you think gives us a competitive advantage?

There are a number of aspects that bode well for us and give us an advantage. Our geographic position is ideal in relation to

European markets, and our time zones are the same, so this is cer-tainly beneficial. In areas where we are not in the same time zone, as with the American markets, we have sufficient infrastructure to deal with it through night shift systems.

Our biggest advantage is the fact that we have English-speak-ing human resources available to us that are educated and under-stand the requirements of our client base.

We do have some limitations though, the most important of these being the lack of incentives that we could utilise to attract foreign investors to South Africa. If we compare the incentives that countries like India, the Philippines and Israel make available to prospective investors it becomes apparent that we have a lot of work to do in this regard.

It is an unfortunate state of affairs because when potential clients come to South Africa they are very excited by what they see. However, our cost ratio is higher than other parts of the world and while corporates that consider South Africa as a BPO desti-nation are generally prepared to pay more for quality, we need to have proper incentives in place to make us a more attractive destination.

The issue of telecommunication costs is also a concern to us because it adds to our costs ratio. I firmly believe if we can address these matters, we will be very competitive internationally.

How urgently do these matters have to be addressed?I can’t stress how urgent it is to have these addressed, espe-

cially in the case of telecommunication costs. If there is some way that government can make it happen quicker, it would assist the industry so much more from an attractiveness perspective.

There are two important announcements that are imminent in this regard. The one is the Electronic Communications Act, and the other is the Final Report around the Colloquium on Telecom-munications. This are the two critical elements that will determine investment going forward and what type of telecommunications cost framework we will be dealing with.

Once these announcements have been made we will be in a better position to understand how competitive we can be from a cost perspective compared to the rest of the world.

Are you optimistic that your requests for incentives and improved telecommunications will meet with a favour-able response?

I am extremely optimistic. But I can’t stress how important it is – and I think, somehow, in this specific area, government does not fully understand the requirements of this sector. With the cor-rect understanding, it would make it so much easier to develop and implement corporate economic incentives and the much needed reduction in telecommunications costs, leading to a more competitive South African offering. Without these tools, the task of driving reduced unemployment and skills development is much more difficult.

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Is it fair to say that competition in the international call centre market is heating up?

Absolutely, there are several key countries who are leading the way such as India, the Philippines and Ireland. There are also some countries like Pakistan who are emerging on the scene and are very serious about taking a share of the market.

In all these countries the large BPO companies work with their governments to attract clients to their region and obviously one of the key aspects is the type of incentives that are made available.

What difference would an effective and up-and-run-ning BPO sector in South Africa make to our country?

Aside from just the question of the contribution to GDP is the holistic question of the social health and wealth of people. When people have jobs it translates into the reduction of crime, better social conditions and a better way of life.

This is key for us as we believe that we can avoid other social problems through skills development and the creation of jobs in the BPO industry, not only in KwaZulu-Natal but the entire coun-try. Once people have a skills set they become equipped for life and this has an important impact not only from a financial per-spective but also a social one.

What do you think the potential is for the development of contact centres on the African continent?

Aside from South Africa I think there are two other African countries that one can look toward for the development of the African BPO sector – Ghana and Botswana. It is wonderful to see African countries come into their own on the international stage, but as South Africans we must recognise that these countries can pose a serious challenge to us.

Botswana has for instance, already developed incentive pack-ages and has people available with the necessary skills that allows it to offer services internationally.

It is therefore important that we as South Africans get all our groundwork in place as soon as possible and ensure that we con-tinue to develop local skills in order to ensure that we do not sud-denly face a skills shortage within the BPO arena over the next few years.

What do you see as your single biggest challenge at this stage?

To get a proper perspective on our biggest challenge I think it is necessary to start by looking at our biggest strength and that is that we have a very consolidated front in KwaZulu-Natal.

We have a good business plan and both the public and pri-vate sectors have the same goals in mind and everybody is work-ing towards the same goal.

However, the reality is that we can do as much as we want to in terms of marketing our region and even marketing South Af-rica, but without specific programmes in place that are designed to benefit potential investors we will continue to be a second place player in the international BPO market.

It may seem as if I am labouring this point but we are rapidly approaching a situation where we will have to start proving to the international business community just how serious we are about winning their business.

This is something that we will not be able to achieve in isola-tion from national government and they need to clearly show they support our endeavours by making available packages that underpin the efforts of KZNonSOURCE – until such time we will always be on the back foot when competing for business.

What’s your vision for the BPO sector in South Africa?

The BPO sector holds enormous potential. It does however have to be managed correctly. We are already off to a good start with all the marketing that is being done within the international arena and the positive awareness that is being raised through this marketing.

A critical adjunct to this is ensuring that we have the req-uisite skills sets in our country so we can build an international reputation as a participant in the BPO sector that has a formida-ble resources base.

I am confident that we can make inroads into international markets because the challenges that we face can be addressed by tweaking our approach to the market.

What type of legacy would you like to leave behind at KZNonSOURCE?

I would like to leave KZNonSOURCE in a position where it is a sustainable organisation, one that continues to adapt itself to whatever the requirements of the industry might be. In particular, I would like it to be flexible to such an extent that it is able to absorb a new suite of products and grow its market offering around this new opportunity, simply by virtue of the skills it has available.

Once people have a skills set they become equipped for life and this has an important impact not only from a financial perspective but also a social one.

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the LEADING edge

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connecting

South Africa is well placed to become a favoured international location for business

process outsourcing (BPO), including call centres, particularly as companies worldwide respond to increas-

ing cost and efficiency pressures.William Goldstone, CEO: KZNonSOURCE

Traditionally, countries such as India and the Philippines have led the way in servicing markets for Europe and the Americas. South Africa is rapidly closing in on these coun-

tries, however, and has a number of factors working in its favour.One of the main advantages South Africa has over these

countries is time-zone compatibility with Europe, and while not similarly compatible with the Americas, has the ability to operate effectively using night shifts. Call centre skills standards in this country are world-class, and the country also sports a high flu-ency rate in English, as well as neutral English accents.

A favourable exchange rate and an advanced telecommu-nications industry also contribute towards international confi-dence in South Africa as a viable BPO destination.

In his 2006 State of the Nation address to Parliament, President Thabo Mbeki identified the call centre industry as one of the high-potential sectors targeted in the government’s strategy to boost the country’s economic growth rate and create employment.

This is where initiatives such as KZNonSOURCE, a public-pri-vate partnership in Durban, enter the equation. KZNonSOURCE’s key objective is to drive direct foreign investment into the Kwa-Zulu-Natal region through the provision of contact centre and BPO services. It has also been positioned as an industry body that is responsible for providing territorial and market information to prospective clients and potential investors.

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Willy Govender, CEO: bizWorks

“We have steadily begun to make inroads in the foreign in-vestment market, particularly in the UK and US,” says William Gold-stone, CEO of KZNonSOURCE. “Aside from the already significant steps we have taken to prepare for further anticipated growth in KwaZulu-Natal, we are also pleased to announce our association with SPG Media, through our national industry body, SACCCOM (South African Contact Centre Community). This will assist us to attract corporates in the European and American markets.”

Thanks to the efforts of KZNonSOURCE and its partners, the region is steaming ahead with regards to growing its footprint, both locally and with international clients. “It is clear, therefore, that we provide a solid platform for investors to understand local conditions,” says Goldstone. “We also assist in establishing rela-tionships with local service providers.”

Goldstone adds that the initiative revolves around value – bringing value to customers, offering a sound value proposition, and enabling a value network. “We know that we offer this to our clients,” he says. “Combined with our passion for growing the industry and creating jobs, it is our commitment to offering value that sees us moving streaks ahead of our competitors.”

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Passionate About KZNBizWorks is a call centre situated in Durban, and has a very

close partnership with KZNonSOURCE. “From a broad perspec-tive, it’s great to work with an industry body that actively pro-motes and markets the region internationally,” says Willy Goven-der, CEO of bizWorks.

“KZNonSOURCE provides us with networking opportunities that are so important for us to make international contacts. From a logistics point of view, they have also helped us with obtaining visas and work permits for some of our UK clients. What’s great about KZNonSOURCE’s marketing drive is that it filters through prospective clients, ensuring that we are brought into contact with those who have already bought into the idea that KwaZulu- Natal is the right location for them. After that, it’s up to us to help them understand why bizWorks would be the best partner in their offshore endeavours.”

Govender also says that an initiative such as KZNonSOURCE allows industry players to work together, leveraging the knowl-edge and expertise that each organisation brings to the table. “Although we are often competing for the same business, it is important for us as an industry to present a united front,” he says. “What is good for the industry in this region is good for individual businesses, and so working together has its advantages from a number of perspectives.”

Govender is firmly convinced that call centres based in Kwa-Zulu-Natal have a lot to offer international clients that many other centres don’t. “From a voice neutralisation perspective, KZN has an advantage,” he says. “We also have a very large English-speak-ing base from which to draw agents, and the time zone we fall in is favourable, especially for European clients.”

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Suleman Shaik, CEO: Direct Channel

He also believes that KZNonSOURCE’s involvement in the industry is a competitive advantage. “No other South African city has as much local government support for the call centre industry,” he says. “Our international contacts are often taken aback when they find out that KZNonSOURCE is a government agency and not a private sector broker. The eThekwini munici-pality is taking up the challenge to provide jobs and skills for the region, and through that commitment is succeeding in grow-ing the local economy.”

BizWorks is also committed to improving the skills set of the region, and does so through its own skills development academy, where in-house training is offered to employees. “Every job we create helps create another two jobs further down the economic value chain, and we remain very aware of that impact,” says Gov-ender. “We also believe that by having a diversified workforce, we offer clients a holistic solution to their call centre needs.”

Last year, bizWorks participated in a very successful learner-ship programme with the Services SETA, where 75 learners were engaged in a programme that saw 55 of them employed per-manently at the company. “It is great to see learners work their way into permanent positions in the company,” says Govender. “However, we still lack skills at management level, and that is one of the challenges we are addressing this year.”

Making Every Call CountWith its head office in Johannesburg, and call centres in Cape

Town, Durban and Worcester, it’s hard to believe that Suleman Shaik started Direct Channel, an outsource call centre business, with only six seats in 2004.

“We now have 1 200 seats countrywide, and are in the proc-

ess of adding another 600 to our Johannesburg operation,” says Shaik, CEO of this fast-moving company. “In Durban, we started with a 50-seat pilot, and grew to 750 seats within nine months. This translates to employment of around 820 people, if one takes the support staff into account.”

Rapid growth aside, perhaps one of the most unique fea-tures of Direct Channel is that Shaik insists on only employing the unemployed. In other words, not poaching from competi-tors, or dipping into the already existing skills pool of employed call centre agents. “In this way, we create jobs instead of shuffling them around the industry,” he says. “Also, we have found that this employment method has lowered our own staff turnover, and helped to build better employee loyalty.”

Employing the unemployed comes with its own challenges, however, most notably equipping them with the required skills. To this end, Shaik created the Direct Channel Academy. “Rather than outsource our training and end up passing that cost on to our clients, we decided to keep the function in-house, and em-ploy trained professionals to train our employees,” he says. “In this way, we ensure that their training is specific to the Direct Channel environment. It also assists us in meeting our skills capacity needs internally, without having to rely on others.”

In Durban, Shaik works very closely with KZNonSOURCE. “We see our relationship with this initiative as a partnership,” he says. “They assist us with leads for new clients, and we assist by creat-ing new jobs within the sector as part of their pipeline.”

Each region that Direct Channel operates in has its own chal-lenges, and Shaik says that one strategy will not work for all re-gions. “In Johannesburg, we face the problem that most large cor-porates have their own call centres, resulting in agents continually

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Theodora Ngidi, CEO: NT Ngidi Consulting

churning from outsourcers to corporates,” he says. “The Cape Town situation is different in that many international captive call centres have based their operations there, resulting in agent churn from one call centre to another.”

In Durban, Shaik says after-hours transport is a problem, as the call centre is located in the CBD, and very little public transport is available after 18:00.

Direct Channel’s call centre in Worcester is small – 40 seats – and is operated in partnership with The Institute for the Blind. “This call centre has been a great success,” he says. “Blind and par-tially sighted employees take much longer to train, as the pro-gramme is intensive and different from usual training, but the benefits we have reaped are well worth the investment.”

Shaik sees Direct Channel’s agents and the technology it em-ploys as the company’s two greatest assets. “Our agents have a very high level of commitment, and are very loyal to our company and our brand,” he says. “Loyalty is an intangible asset, but lack of it would definitely affect a business negatively.”

On the technology front, Shaik ensures that Direct Channel partners with internationally recognised brands and has appoint-ed leading local IT companies to implement and manage the tech-nology infrastructure. “We also have an in-house IT development team who work closely with our technology partners, to ensure that we stay at the cutting edge of technological developments in the BPO industry,” he says. “Through our technological advances and our commitment to our people, we aim to be the preferred employer in the BPO sector in every region in which we operate.”

Specialised SolutionsOwned and operated by Theodora Ngidi, NT Ngidi Consult-

ing is a recruitment consultancy with its head office in Durban, and branches in Johannesburg, Cape Town, Pretoria and Port Elizabeth.

Although the business does not yet have formal ties with the KZNonSOURCE initiative, Ngidi has established a relationship that she feels will be mutually beneficial to both parties in the future.

“We are a recruitment consultancy, and we are therefore ex-posed to the amount of people looking for jobs, particularly in Durban,” she says. “When initiatives such as KZNonSOURCE come along we support them, because they are committed to creating more jobs in the region, which enables us to assist those looking for employment through our consultancy.”

Ngidi also mentions that KZNonSOURCE’s network of interna-tional contacts is an advantage, as her organisation is interested in attracting international business. “The networking opportuni-ties that have been made available to us through various forums and meetings are great,” she says. “We definitely see our relation-ship with KZNonSOURCE growing in the future.”

From a recruitment point of view, Ngidi stresses that her consultancy believes that success only comes from having the right tools for the job, and using them effectively. “Our approach is very thorough,” she explains. “We screen, assess and test every applicant, and we believe in doing our homework when it comes

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to sourcing and selecting candidates for specific industries. For example, in the call centre industry, we have researched the quali-ties necessary for successful employment and make sure that our candidates are above average in this regard.”

In order to continue delivering superior service, Ngidi also believes in continually benchmarking against other similar or-ganisations, both locally and globally. “We know that our qual-ity is outstanding – we have received many awards and ratings to that effect,” she says. “However, in order to stay that way, and improve even further, I believe it is necessary to analyse the in-dustry carefully on a regular basis to determine where you fit in. Once you have established this, it is also important to capitalise on your strengths and set in motion a plan to improve those

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areas where you are not so strong.”NT Ngidi Consulting has committed itself to operating pro-

fessionally, and offering clients customised solutions. “There is no such thing as one-size-fits-all in our industry,” she says. “Businesses need to thoroughly analyse their clients’ industry, unique position within that industry, and their needs regarding recruitment. Only then can one offer an effective solution.”

Although it is still early days, Ngidi is optimistic about her business’ relationship with KZNonSOURCE. “This initiative is good for Durban – the positive effects are already showing,” she says. “And what is good for Durban is good for NT Ngidi Consulting!”

Developing DurbanBased in Durban, SmartXchange is a technology innovation

node and a dynamic, young business incubation centre estab-lished to promote and support the region’s vision to be the tech-nology hub of Africa.

SmartXchange is an example of a successful public private partnership initiative within the ICT industry, and it was estab-lished for the purpose of developing the business base of this industry in South Africa.

“SmartXchange was formed about two years ago, and focus-es on small to medium enterprises, transforming their operations into successful businesses,” says CEO Martin Cele. “We want to as-sist the region in building a pool of expertise that will give it a global competitive advantage.”

It is for this reason that SmartXchange has partnered with KZNonSOURCE in its contact centre/BPO service, which also fea-tures Durban Investment Promotions Agency (DIPA) and Trade and Investments KZN (TIKZN) as partners. It has already proved successful and Cele is confident that the local contact centre in-dustry will create at least 5 000 new jobs over the next 5 years.

“Traditionally the success of technology hubs or business in-cubators is based on the performance of their tenants,” says Cele. “We have gone a step further and developed a model based on the collective successes of hubs around the world, and built them into SmartXchange. These include combining the strengths and skills of the private and public sectors, giving us the ability to be a vehicle that facilitates partnerships, SME growth and skills devel-opment. Our role will be to actively promote these partnerships, thereby bringing investment into the region through identifying key growth areas.”

SmartXchange is involved in other projects as well, one of which is the development of a number of cost effective municipal administration systems, some of which are already in use by the eThekwini Municipality. “We hope to market these applications to other local authorities, thus helping improve service delivery across the country,” says Cele.

Aside from SmartXchange’s incubation centre, which provides a platform for SMEs to obtain support while growing their busi-nesses, Cele says that the organisation has an ongoing project that focuses on e-learning. “This includes both formal and infor-mal learning, and is in line with the City’s drive towards becoming

Martin Cele, CEO: SmartXchange

a ‘Learning City’,” he explains.SmartXchange is also involved in upgrading the skills of exist-

ing SMEs. “We currently assist 18 SMEs with various functions from a skills development perspective,” he says. “We perform a skills au-dit for these businesses, and then assist them in filling the gaps. We want to see the roll-out of a greater number of SMEs servicing key growth areas in KZN.”

Cele adds that this kind of development will position the cen-tre as the premier vehicle for attracting ICT-related investments. “We have upgraded our facilities and the look and feel of our of-fices,” he says. “We have the capacity to host up to 20 SMEs in a high bandwidth environment.”

Cele believes that partnering with organisations such as KZNonSOURCE and other like-minded entities can only be ben-eficial for both Durban and the region. “We need organisations

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that are passionate about creating jobs and improving skills sets in the province,” he says. “It’s great to work with people who mean it when they say they want to develop KZN.”

Team EffortUK company Talking Shop operates domestically from its of-

fices in Yorkshire, as well as from an international call centre in Dur-ban. It markets its services to over 40 million existing mobile phone users in the UK, and utilises state-of-the-art technology to do so.

Having this UK-based contact centre operate from Durban is a big feather in the cap of KwaZulu-Natal, and reinforces the province’s drive towards being internationally competitive. “Cur-rently, Talking Shop is not directly involved with KZNonSOURCE,” says CEO Jess Watts. “However, our plans for our future in South Africa are certainly intertwined with theirs.”

Although Talking Shop does not yet have a direct association with KZNonSOURCE – and Watts says this is planned for the next twelve to eighteen months – the company is already participating in events arranged by the initiative, such as an upcoming awards ceremony that is planned for later this month. “William and I have chatted about KZNonSOURCE’s plans, and I am pleased to see that

Jess Watts, CEO: Talking Shop

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they are good for Durban and the province as a whole,” he says. “We are therefore prepared to offer our support to the municipality in the meantime, because we believe that their initiatives will benefit the businesses within the province.”

When asked about his contact centre in Durban, Watts makes a point of explaining that he is fully aware that his staff pays his wages, not the other way around. “Without my team, I wouldn’t have a business,” he says. “I always keep that in mind when making decisions that would affect my team, as it is important to me that they are happy and comfortable within their environment, and are being rewarded for hard work and performance.”

Training is vital to his operation, and Watts offers specialised in-house training, which usually runs for a duration of three weeks. “The training is intensive, and is particular to Talking Shop and the way we do things,” he says. “Another unique factor is that our trainees are paid while they are training – something that doesn’t happen often in this industry.”

Watts also believes in keeping the lines of communication within his organisation clear and open. “The reporting structure within Talking Shop is clearly defined,” he says. “There are con-stant reviews of the way things are done, and the staff participate in these reviews. They are, after all, the ones who the structure affects most. We also have a fantastic support structure for our agents, and the people within this structure really contribute to making the operation a team effort.”

Although Watts and his team are at the forefront of proactive, employee-centric practices when it comes to training, recruit-ment and retention, Watts does mention that one of his chal-lenges is finding quality, experienced agents. “The skills pool in this country needs to be increased dramatically,” he explains. “That is why we have placed such an emphasis on training, and that is also why we have established a relationship with KZNonSOURCE. We believe that their initiative is one that will bring a greater skill set to the industry in this province, and will improve the skills cali-bre at the same time.”

Opportunity KnocksVelociti is a South African company that services the call cen-

tre and BPO markets. “We specialise in bringing world-class cus-tomer service and cost savings to both international and local UK clients,” says Craig Ireland, CEO. “We have a sales and marketing office in London and our operations are based in Durban, so we are able to offer the convenience of local relationships with the advantage of offshore operations.”

Operating in Durban, it was a natural progression for Velociti to become involved with the KZNonSOURCE initiative, and Ireland says that through this relationship his company hopes to bring more business to South Africa. “Currently, we service a number of markets including financial services, insurance, telecommuni-cations, retail and technology industries,” he notes. “South Africa’s highly advanced financial services and insurance sectors make the country extremely attractive to companies in these sectors that wish to outsource their call centre and BPO operations.”

Velociti’s commitment to the KZNonSOURCE initiative is evi-

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One of the challenges Ireland and his team face is one that is echoed throughout the BPO industry in South Africa – a short-age of skills. “This is why we believe that our partnership with KZNonSOURCE is so important,” he says. “They are committed to alleviating the skills shortage by assisting in creating thousands of jobs over the next three years in KwaZulu-Natal. That will be a major boost for the sector in this region, and make it even more attractive to international companies looking for a base from which to operate.”

Ireland also mentions the lack of a structured incentive scheme from government for attracting foreign investment, a point that KZNonSOURCE’s Goldstone also feels strongly about. “South Africa has a window of opportunity in which to get its house in order regarding the packages it should be offering to international clients,” says Ireland. “That window will not remain open forever – international trends in our industry have shown that other countries are champing at the bit for international business. More importantly, they have good government incen-tives lined up and unless South Africa does the same, it will lose the race to attract international clients.”

No holds barred...According to www.southafrica.info, research published in

November 2004 by independent analysts Datamonitor, predict-ed that South African call centre numbers would double by 2008, and rated South Africa ahead of India for quality of service.

Datamonitor predicted that there would be 939 call centres in South Africa by 2008, almost double the number of 494 in 2003 – a compound annual growth rate of 14% over the period.

According to this research, South Africa offered outsource providers a higher quality, more culturally aligned front-office and back-office location, with labour costs running at about two-thirds of their US or UK equivalents.

These findings were echoed in a report released in 2005 by the Ion Group, which polled many of the UK’s top 1 000 com-panies for their ideal offshore location, and ranked South Africa ahead of India, Mexico and the Philippines.

For global firms, South Africa slots in between near-shore locations such as Canada, Mexico or Eastern Europe, which of-fer close proximity and also cultural affinity to domestic markets, and more traditional offshore locations, such as India and the Philippines, that offer cheap labour.

Datamonitor also confirms that South Africa leads Africa’s BPO sector – a feat that is surely attributable to initiatives such as KZNonSOURCE that have succeeded in bringing the public and private sectors together in a bid to grow the industry in their regions, and the country as a whole.

There is clearly no stopping KZNonSOURCE, and the indus-try in KwaZulu-Natal. They have proved themselves a force to be reckoned with, and those who monitor developments in this sector over the next few years will certainly come across KZNonSOURCE time and again.

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Craig Ireland, CEO: Velociti

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dent in its active participation in developing the call centre and BPO industry in KwaZulu-Natal. “We involve KZNonSOURCE in our client visits, capitalising on their knowledge and expertise when it comes to the industry in this region,” explains Ireland. “We also participate in local events relating to the industry, and there are definitely open lines of communication between the two organisations, providing a good platform for constructive feedback and matching value propositions. It is great to have a direct link to the city’s perspectives on the growth of the region as a whole, and our industry in particular.”

Ireland believes that there are a number of factors that set Velociti apart from its peers, and one of those is the fact that the development and growth of people is core to the company’s business model. “We try to ensure that our people come to work with their hearts and minds, not just their hands and feet,” he says. “If people have a positive attitude, they will be prepared to go beyond the ‘script’, and become confident in their abilities.”

The end result Velociti is looking for is for its people to focus on the customer and to deliver world-class service that ensures customer loyalty and retention. “We therefore train very specifi-cally,” he says. “We call it the Velociti Way, and it involves brand-specific training that exchanges the old practice of co-existing with the new business model of co-creating.”

The Atrium Building, SmartXchange, 5 Walnut Road, Durban, 4001, South Africa Tel: +27 31 311 1964 , Fax: +27 31 304 9903 , e-mail: berrimant@durban.gov.za, www.kznonsource.co.za

connect...

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foreign direct investment

service providers

value

private sector

kwazulu-natal

clients

results

Through our BPO and contact centre services, we ensure the world connects through KwaZulu Natal

• an eThekwini Municipality initiative •