AI is already disrupting SA’s BPO Sector – but stakeholders believe it could lead to growth

AI is commonly viewed as a threat to service jobs, but South Africa’s Business Process Outsourcing (BPO) sector is treating AI integration as an opportunity to win global market share. 

Industry leaders meeting this week at the BPESA 2026 GBS/BPO Conference in Cape Town underscored that the sector is navigating technological disruption from a position of real strength. Last year, the local Global Business Services (GBS) sector generated over R7.55 billion in export revenue and added 26,346 international-facing jobs—nine in ten going to young South Africans. 

The Western Cape is the largest regional BPO cluster, employing over 100,000 people in total and generating 11,496 new jobs locally in the 2025/26 financial year. 

Speaking to the Cape Chamber on the sidelines of the conference, Cape BPO CEO Clayton Williams called for a balanced view on automated technologies. While acknowledging disruption in entry-level basic skills, he said the real focus must be the functional integration of human and digital workforces. 

Mainstream advancements—including real-time translation, accent neutralisation, and voice technologies—enable local operators to deliver multi-language capacity globally. Williams says pairing these digital tools with South Africa's conversational fluency and inherent empathy creates a strategic value proposition that outperforms traditional offshore hubs. 

"I think at the moment the glass is half full as opposed to half empty," Williams said. "We are already seeing some form of disruption because of AI, especially related to entry level basic skills. But I think the conversation point is functional integration of human and digital work forces and how operators are repositioning their value propositions to embrace AI." 

In her welcoming address, BPESA CEO Reshni Singh urged the sector to evolve beyond traditional metrics like low labour costs. "The industry's next phase of growth must focus on equipping employees to work alongside AI, rather than positioning technology and human talent as competing forces," said Singh. 

Newly elected BPESA Chairman Crispin Sonn echoed the need for a human-centred approach, noting that AI can either be an existential threat or an opportunity to enhance quality of life, depending on industry leadership. 

With international investor confidence surging—evidenced by major local expansions from global players like TP Group and Atain—South Africa is rapidly solidifying its position as a sophisticated, hybrid offshore hub.