Market feedback on dti’s BPO Incentives - 3 July 2007

Contact Industry Hub newsletter has been following the dti’s BPO sector Incentives since they were launched. Just a month after they were launched, these incentives received some serious bad press. We interview a few industry gurus for their opinions on the dti Incentive system.

JEAN ARNALL, ATIO Corporation

1. What do you believe are the primary 'positives' or selling points?

The primary selling point is the fact that the government through the dti is supporting the expansion of BPO business in the country and specifically offshore business. This is similar to the support and incentives implemented in India and which were instrumental in growing the burgeoning BPO market there. From the documentation available, the conditions for qualification appear to be clear and unambiguous. The amounts committed to appear to be generous. Another positive is the fact that measurement of performance against the criteria will be required in order for payment of the grants to be made. The training grant is generous for a start-up operation and could help establish a base of solid skills in the BPO and contact centre industry.

2. What aspects from 1. can make this set of incentives attractive to global investors?

When investing in foreign countries, a lack of support in establishing a business can make the process arduous and expensive. By providing the incentive, especially in view of the fact that some other countries such as Ireland are pulling back their incentives, will make South Africa more attractive to global investors. By lowering the barrier to entry but placing targets on the investors to create and maintain jobs, it makes this a sustainable model for both the investor and South Africa.

3. Where do the challenges lie within this set of dti incentives? E.g. actual process/implementation, some details that still need finalisation?

The challenge will be to assess the proposals and then to assess the delivery against the defined performance criteria throughout the three year period. From a capacity and expertise point of view, the dti may have to appoint an external agent to conduct these appraisals.

4. From these incentives, what will be the main message that should be used, from this point forward, to market SA?

The Proudly South African brand is apparently one of the best recognized in the world. The message should be that the South African government is prepared to put their money where their mouth is and deliver the goods to global investors.

5. How should this change South Africa’s message or marketing strategy, if at all?

On the back of the Proudly South African campaign, a marketing strategy should be developed to communicate the dti incentives clearly to target countries and target markets. First of all, market internally to local companies and then take the message broader to international companies. The workshops planned by ContactinGauteng are a good start but should be held country-wide.