Monday, September 20, 2004

Lower Telecom Costs Boost Outsourcing to South America

allAfrica.com reports policy changes announced this month by the communications ministry of South Africa will lead to globally competitive telecommunications prices and ultimately more outsourcing business to South Africa.

One of the country's less attractive features is its high telecommunications costs. But this is set to change following the news that the licensing of the second network operator will take place this month. Also, as of next year it will be legal for more players to carry both voice and data traffic over a single line.

Call Centre Nucleus marketing director Jonathan Hackner says South Africa competes with about 20 countries for call-centre business and ranks about fifteenth, with India and the Philippines leading the pack. "However, we can rank in the top five once our telecommunications prices come down," says Hackner. He reports that the Department of Trade and Industry is offering R200-million worth of incentives for companies which set up local call centres, a move which can create an additional 100 000 jobs by 2007.

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