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South Africa is increasingly becoming a preferred location for international companies seeking to offshore or set up shared service centres. New data from leading global talent solutions business Robert Walters highlights that the country is increasingly viewed as a strategic option for companies aiming to optimise costs and tap into a highly skilled workforce.

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Why South Africa is Gaining Attention

Offshoring – the relocation of business operations or services to another country – has become a key part of many companies’ global strategies.

In a recent Robert Walters global survey, 60% of business leaders ranked South Africa as the most attractive country for offshoring, surpassing countries like India (10%), the Philippines (10%), and Eastern Europe (19%).

While access to skilled talent (41%) and retained earnings (39%) remain the top reasons for offshoring in general, South Africa offers the added advantages of strong English proficiency, time zone alignment with major markets, and a growing reputation for business and tech services.

Key Sectors Driving Offshoring in South Africa

Industries that have shown notable growth in offshoring activities to South Africa include Tech & IT, which accounts for 53% of new roles. This is followed by demand in customer service and support (18%), finance and accounting (20%), and HR and recruitment (9%).

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“We’re seeing a strong pipeline of international businesses establishing operations in South Africa – particularly in tech and support functions,” said Samantha-Jane Gravett Director at Robert Walters Africa. “South Africa offers an agile, highly capable workforce that aligns well with global business hours and standards. As more organisations look to build resilience, agility, and efficiency into their operating models, South Africa is stepping up as a go-to solution.”

The Broader Impact on Global Job Markets

Offshoring has been found to influence job markets globally, with 63% of business leaders agreeing that it encourages upskilling in home markets. Additionally, 23% believe it creates global job competition.

While these factors highlight the competitive nature of offshoring, they also reflect the broader trend of global talent mobility, where businesses are tapping into regions like South Africa for specialised skills and services.

Growing Trend of Offshoring and Nearshoring

As digital transformation accelerates and companies reassess the future of work, the trend towards offshoring and nearshoring is expected to grow. South Africa stands out for its combination of skilled talent, strong infrastructure, and alignment with international business practices – making it a strategic location for building global capabilities.

Click for more information on Robert Walters and trends in offshoring.

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