Implementation evaluation of the business process services incentive programme

Abstract

The paper describes the implementation evaluation of the business process services (BPS) incentive programme undertaken by the Department of Trade and Industry (the dti) and the Department of Performance Monitoring and Evaluation (DPME) as part of the 2012/2013 National Evaluation Plan. The evaluation started on 31 October 2012 and the final report was approved on 17 May 2013. The evaluation covers the period from the inception of the programme in January 2011 to December 2012. The BPS incentive programme was implemented to stimulate the business process sector which contributes to economic growth largely through employment creation. The main objectives of the programme are to attract investment and create employment opportunities through offshoring activities. Twenty-six indicators across the five Development Assistance Community (DAC) evaluation criteria were developed. A multi-method approach was undertaken to collect data for each of the indicators. The key findings relate to the operation of the programme and a number of suggestions were made as to how to strengthen it. Overall 3807 jobs have been created through the BPS programme during the period under review. Estimated total investment provided by firms is approximately R2.7 billion. Amongst others, the study recommended that the design of the programme be reviewed and extended, potentially to a five-year period in order to maintain the competitiveness of South Africa as a business process off shoring destination. It is essential to address the skills shortage to ensure the growth and sustainability of the South African BPS industry and finally the uptake of the incentive programme.