Pritchard BPeSA appointment good for South Africa’s outsourcing value proposition

OVUM VIEW

Summary

Ovum was pleased to learn of Gareth Pritchard’s – currently CEO of Business Processing enabling South Africa’s (BPeSA’s) Western Cape division – appointment as the new interim head of BPeSA national. Based on his solid track record at BPeSA Western Cape, we believe that he was the logical choice to develop South Africa’s outsourcing value proposition. The Western Cape region has been successful at attracting in-house and outsourced investment, and Ovum believes it would be wise to replicate this at the national level.

Pritchard right man for the national job

Gareth Pritchard is a good choice to take over as CEO of BPeSA national due to his background in the contact center sector from both the outsourcing side (at Teleperformance) and in-house (at Lufthansa), which affords him with an on-the-ground understanding of what operators in South Africa need to succeed commercially. Equally compelling is his track record at the Western Cape BPeSA office, which he assumed in late 2010. Since this appointment, Pritchard has successfully raised the province’s (and country’s) profile among opinion leaders and vendors, something that had not been achieved by any South African jurisdiction for several years. This involved hosting an analyst summit in early 2011, and engaging in an ongoing dialogue with Western Cape’s government, the City of Cape Town, and the national DTI in order to lobby for more outsourcing-friendly policies for prospective and existing investors.

The results of these efforts have been clear. Since his arrival, a number of blue-chip deployments have occurred in the Western Cape region, with WNS, Serco, and Capita among the most notable. While these investments have certainly been part and parcel of significant coordination among many stakeholders, this level of outsourcing activity had not been seen in Western Cape prior to the arrival of Pritchard in 2010.

Western Cape approach should be welcomed at BPeSA

There can be little doubt that BPeSA will be able to benefit from Gareth Pritchard’s successful approach to developing the outsourced contact center space. His success has been rooted in his willingness to draw together the various stakeholders (including government officials, in-house CRM managers, and outsourcing vendors) in the Western Cape’s contact center space in order to build a strong rapport among all involved, and facilitate a coordinated plan to develop the jurisdiction’s value proposition. His industry experience will be welcomed in his new position as it will lend instant credibility to the national body when prospecting for new business from outsourcers in targeted offshore locations. We also believe that BPeSA national should adopt Pritchard’s Western Cape strategy of prioritizing offshore development via new business from the UK and Australia (a strategy that has proven successful to date). This is due to the cultural and commercial sweet spots between these countries and South Africa.

We believe that appointing Gareth Pritchard to take over BPeSA at the national level will benefit South Africa’s outsourcing value proposition, especially considering his track record of success in Western Cape and his ability to drive progress via stakeholder buy-in and consensus. Thus, it is our view that should the interim period go well, BPeSA’s board should consider making Gareth Pritchard the organization’s permanent head. By doing so, the BPeSA will be installing a person with deep industry understanding and a proven record of developing outsourcing in one of the most populous regions of the country. These are strengths that BPeSA will need to have at the table if South Africa is to compete in an ever-competitive offshore outsourcing market.

APPENDIX

Author

Peter Ryan, Practice Leader, IT Services

peter.ryan@ovum.com

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