South Africa’s global business services (GBS) sector must move towards higher-value services and develop future-ready skills, as AI increasingly disrupts entry-level jobs and challenges the sector’s traditional call centre model.

The sector must reconsider how value is defined in the industry, as traditional measures of labour costs and hours worked are no longer sufficient to guarantee future competitiveness, says business process outsourcing industry organisation Business Process Enabling South Africa (BPESA) CEO Reshni Singh.

The traditional strengths of the industry include a skilled, English-proficient and multilingual workforce, favourable time-zone alignment with major international markets, established infrastructure and a mature GBS ecosystem.

The sector added 26 346 jobs in 2025 to provide services to international clients, with about nine in ten jobs going to young South Africans. It also generated R7.55-billion in export revenue.

Combining technological innovation with human skills, such as empathy, judgement and complex problem-solving, is increasingly crucial, as AI disrupts the sector, she says.

“The industry's next phase of growth must equip employees to work alongside AI, rather than positioning technology and human talent as competing forces,” says Singh.

BPESA chairperson Crispin Sonn calls for a human-centred approach to technological change, and cautions that the impact of AI will be determined by the decisions made by businesses, policymakers and society.

“AI could be an existential threat, or an opportunity to advance the quality of life for more people and businesses,” he says.

The industry has become an important driver of youth employment, export revenue and foreign investment.

“South Africa has what it takes to compete, lead and thrive. The future of our sector will be shaped by the decisions we make, the partnerships we build and the opportunities we unlock together,” says Singh.

Meanwhile, despite the changing global landscape, international investors continue to demonstrate confidence in South Africa's GBS capabilities, with French GBS and customer experience company TP Group pledging R145-million in March towards its operations in the Eastern and Western Cape, with the investment expected to support 2 600 employment opportunities.

Additionally, in August, GBS and business process management company Atain opened a new GBS centre in Cape Town, backed by a R70-million investment and plans to expand its local workforce from approximately 1 500 to 2 100 employees, BPESA says.

Cape Town remains South Africa's BPO industry hub, employing more than 100 000 people in the city, including about 70 000 in international-facing roles.

The sector created 11 496 new jobs in Cape Town during the 2025/26 financial year, while 44 803 net new international-facing jobs have been created during the past five years.

“Behind these figures are real people developing careers and supporting their families. Working alongside BPESA and the Department of Trade, Industry and Competition, we must create the right conditions for businesses to invest and grow, while preparing our workforce for the opportunities that AI and technology will bring, says City of Cape Town Economic Growth MMC James Vos.

The city is also investing in workforce development, including through initiatives that introduce Grade 11 and 12 learners to career opportunities in the industry and equip them with foundational workplace skills, he adds.