Why Global Companies Are Choosing South Africa for Offshoring and Remote Work

South Africa is fast becoming a global hotspot for offshoring and remote work, attracting international companies and digital nomads in droves. From tech hubs to customer service centres, the country is positioning itself as a strategic destination for building international business capabilities.

According to a new survey by recruitment agency Robert Walters, 60% of global business leaders now consider South Africa the most attractive country for offshoring. This puts it far ahead of traditional offshoring destinations such as India (10%), the Philippines (10%), and Eastern Europe (19%).

So, what’s behind this growing trend?

Skilled Talent and Cost Advantage

At the heart of this shift is South Africa’s highly skilled, English-speaking workforce and cost-effectiveness. The top reasons cited by companies include access to skilled talent (41%) and retained earnings (39%), thanks to the lower cost of living and operations in the country.

Tech and IT services are leading the pack, making up 53% of new offshoring roles. Other growing sectors include finance and accounting (20%), customer support (18%), and HR and recruitment (9%).

“South Africa offers an agile, highly capable workforce that aligns well with global business hours and standards,” said Samantha-Jane Gravett of Robert Walters Africa. “We’re seeing a strong pipeline of international businesses establishing operations here – particularly in tech and support functions.”

Remote Work Visa Sparks New Opportunities

It’s not just companies making the move. The South African government has introduced a Remote Work Visa, hoping to cash in on the rise of mobile professionals working abroad.

Foreign nationals earning at least R650,000 per year and employed by overseas companies can now apply for this visa. The initiative is designed to encourage digital nomads to live in South Africa while paying local taxes and spending their income locally.

The Department of Home Affairs believes the visa will contribute to local economic activity and broaden the tax base. Although only 24 remote worker visas have been officially issued since May 2024, interest is growing rapidly. Enquiries have surged in early 2025, according to government officials.

Challenges and Opportunities Ahead

While uptake has been slow, many believe the Remote Work Visa holds enormous potential. Experts estimate that over 40 million digital nomads exist globally, and at least 10,000 are already working remotely from South Africa, based on LinkedIn data.

Some lawmakers, however, are concerned about enforcement and transparency. They fear some remote workers may be entering South Africa under incorrect visas or bypassing tax regulations.

Still, the overall trend is clear: South Africa is becoming a strategic choice for companies looking to build resilient and cost-effective operations, and for workers seeking a high-quality lifestyle at a fraction of the cost.

As businesses continue to evolve in a post-pandemic world, offshoring in South Africa is more than a cost-cutting tactic—it’s a smart investment in agility, talent, and sustainability. And with new immigration tools like the Remote Work Visa, the country is opening its doors to a new generation of global workers.

{Source: BusinessTech}

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