Insights

At DVT we run regular online events that are focused on the latest technology trends within the IT industry and we invite guest speakers to share their knowledge and insights on various topics. The DVT Insights Events aim to enlighten you, educate you and often, provide a new view on a burning issue within the technology space.

Outsourcing to South Africa gets the IT project done!
Mark Buwalda
Senior Business Development Director, DVT

Outsourcing to South Africa gets the IT project done!

Tuesday, 11 May 2021 11:16

Why should one consider outsourcing to South Africa where its IT experts can help make your projects a success? What makes an African resource, by definition, a value-rich asset?

When I first stepped foot into an office in South Africa, at the turn of the previous century, digitalisation and the internet were still in their infancy. However, I saw first-hand how work ethic, dedicated entrepreneurial spirit and an incredible ability to adapt made employees well-admired, setting the stage for the emergence of IT outsourcing services. Whereas previously, most employees in the IT industry had an inconsistent education, the formal education and skills levels in South Africa have improved significantly, fostering a conducive environment for outsourcing companies in South Africa. In the early days, the rule was to follow a few courses to construct self-taught knowledge. I believe that this is due to one of the many positive attributes of the hungry-to-learn entrepreneur living in Africa.

The Rise of IT Outsourcing Services in South Africa

“the drive to succeed amongst these individuals pushes the entire community to do more and to do it better”

The ever-changing knowledge needs of the world’s largest digital continent have since created a continuously changing demand for better-educated individuals. This evolving landscape has led to a growing trend of outsourcing to South Africa, where a blend of skill and innovation thrives.The demographic has since changed a lot too, aided by the continuous influx of people from other African countries. As a result of this exodus, the local knowledge pool has been significantly enriched, attracting outsourcing companies in South Africa to tap into this vibrant tech ecosystem. With South Africa’s metropoles serving as an IT incubator for the entire African continent, the drive to succeed amongst these individuals pushes the entire community to do more and to do it better. The motivation to serve their host communities, while doing well for their home community, adds fuel to this burning fire of young, tech-savvy developers and IT experts.

Outsourcing Companies in South Africa: A Hub of Tech Talent

Africa’s knowledge base gets the IT project done!

Throughout my residency and travels across Africa, I have come across the most outstanding IT professionals, many of whom are adept in providing IT outsourcing services. In countries like Ghana and Kenya, the tech community is extensive and knowledgable – often to the amazement of many of my clients in Europe who regularly outsource IT services. Even with sometimes outdated equipment, they produce the most incredible, well-developed products and projects. Once again: a tribute to the truly African entrepreneurial spirit and their ability to outsource software development efficiently. In Kenya, the renowned ‘Mpesa Project’ has since grown to become the most used wallet system in the world, showcasing the expertise of outsource IT experts. It was locally developed by Kenyans, for Kenyans. The Ghanaians also have an extensive track record in the banking-related payment domain. Ethiopians and Egyptians are well known and trusted for their ability to develop novel IT systems. The South African banks were using Internet Banking years before their counterparts in Europe were even thinking about it.

“they learn from the expensive mistakes made by the rest of the world”

Advantages of Outsource IT Services in Africa's Tech Landscape

One of the remarkable advantages the Continent has over the Old World is that it offers companies looking to outsource the opportunity to access the latest technology without bearing the burden of paying for outdated systems of the past. Simply put: South Africa, as an outsourcing destination, has learned from the expensive mistakes made by the rest of the world, embodying the concept of the 'Law of Inhibitory Progress.' This forward-thinking approach has given South Africa an edge as an outsourcing destination, making it a go-to choice for businesses seeking to outsource IT services and outsource software development. South Africa has become a hub of IT experts and a vast talent pool, and companies can benefit from the lower cost of outsourcing to South Africa while tapping into the expertise of the South African employee.

Outsource Software Development: A Cost-Effective Strategy in Africa

Africa’s knowledge base gets the IT project done!

To illustrate this in even the smallest way: I remember landing in Johannesburg and almost immediately receiving a computer much better equipped (combined with far less paperwork) than the old hand-me-down I left behind in New York. This experience showcases the benefits of outsourcing to South Africa, where the tech infrastructure is advanced and efficient, making it an ideal location for outsource IT services. When considering a new software package, it was easy to proceed without having to consider expansive and bureaucratic systems, thanks to the streamlined IT outsourcing services based in South Africa. Another example is Africa’s widely available and extremely cheap internet, which is amongst the most expansive in the world. This enables almost half of the continent to enable their actively managed Facebook profile, for less than a single $1 per GB, demonstrating how South Africa offers cost-effective opportunities for outsource software development. This, once again, surprised many of my friends in continental Europe, highlighting how South Africa can benefit businesses seeking IT solutions.

“previous costs to get a similar job done have come down significantly”

In Africa, the latest and best is simply available at a reasonable price, making it an attractive destination for outsourcing companies in South Africa. I have also come to better understand the silo structure that often exists in traditional institutions in the West, through my extensive business and residential history. The pioneers in these richer, more developed countries have had to concur massive investment, but now that these prices and extensivity of previous costs to get a similar job done have come down significantly, they are now no longer necessary.

Outsource IT Experts: Bridging the Global IT Gap

As the world looks to satisfy an increasingly insatiable need for IT experts in an ever more IT-orientated world economy, we see that Africa steps in and fills the gap. With her digital population growing at a faster rate than anywhere else on the globe, combined with the advantageous investment opportunity of a developing economy, we are seeing that the nearshoring of IT solutions to South Africa is a wise extension to any IT team from any global destination, especially when considering outsourcing to South Africa.

If this is something you’d like to chat about, let me know. DM me anytime!

Editor's Note: This post was originally published on 21 February 2020, and was updated on 5 December 2023

Published in Near-Shoring