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GBS Sector Jobs Report Q4 2020

We are delighted to share the GBS Sector jobs report for the quarter ending 31 December 2020. It has taken a while to publish as we needed to complete a lengthy process of reconciliation numbers across multiple sources, with lock down in 2020 also having impacted the timing of this process.

Nevertheless, the numbers are extremely positive and I’d like to use this opportunity to thank our global clients for their continued support and business, and to congratulate the operators who created 17,354 new jobs during the year of which 5,430 were created in Q4 alone.

The effects of the global pandemic are evident in the first and second quarters of the year when industry operators were impacted the most by lock down conditions and as they rapidly shifted to work-at-home models. However, the industry started recovering quickly and returned to good growth in the last two quarters of the year which is a reflection of the dynamic and robust nature of the sector.

When analysing the entire 2020 period, the retail industry (28.39%) utilities & energy industry (23.18%) and telecoms industry (18.66%) were the largest international vertical industries serviced from South Africa during the year. Other global vertical industries serviced from the country in 2020 include insurance (12.15%), technology (6.83%) and travel and transport (6.38%). In addition, smaller numbers of new jobs were created in general BPO & contact centres, banking & financial services, logistics & supply chain, healthcare & medical, shared services, media and automotive.

The USA contributed 27% of export revenue growth in the sector. The United Kingdom remained the major GBS trading partner accounting for 52% of globally traded business services in the country. There was also continued and notable contribution from other African countries (10%), China (5%) and Australia (4%).

The Global Business Services Sector in South Africa is recognised by government and business as a priority growth sector due to its rapid growth (an average CAGR of 25% between 2018 and 2020) and its job creation ability. Our globally recognised responsiveness during 2020 over lockdown as well as the recent win as the Top Offshore, Front Office CX Location as announced via Ryan Strategic Advisory in April 2021 has re-enforced this priority status.

For BPESA, the importance of this sector and its contribution to economic recovery and reconstruction cannot be over-stated. With the economy in stress and joblessness at an all-time high, the opportunity of this sector adding almost 70,000 new youth jobs to the economy by the end of 2023, is one that inspires how amongst stakeholders and, understandably puts a spotlight on the sector to deliver.

We look forward to reporting on equally strong growth numbers in the 2021 period.

Yours sincerely

Andy Searle

BPESA, CEO

Click here to download the latest GBS Sector Jobs Report

 

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