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US friction casts pall over local call centres

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Meeting ambitious growth targets requires calm diplomatic waters, warns Business process outsourcing industry association
The article from BusinessLive discusses the challenges faced by South African call centers due to increasing friction between the US and South Africa. The US has raised concerns over South Africa's foreign policy, particularly its stance on the Russia-Ukraine conflict, which has led to potential economic repercussions. This tension threatens the lucrative business process outsourcing (BPO) sector in South Africa, which benefits from cost advantages and a skilled English-speaking workforce. The article highlights that the US is South Africa's second-largest trading partner, and any trade restrictions or sanctions could significantly impact the call center industry. There's mention of a possible review of South Africa's eligibility for the African Growth and Opportunity Act (Agoa), which could further complicate trade relations. Local call center operators are worried about losing business as American companies might look elsewhere for outsourcing if geopolitical tensions escalate.

Read the Full BusinessLIVE Article at:
[ https://www.businesslive.co.za/bt/business-and-economy/2025-03-23-us-friction-casts-pall-over-local-call-centres/ ]