Dti approves grants for business process outsourcing

Thursday, September 8, 2011

Pretoria - Grants worth R157.76 million, under the business process outsourcing incentive scheme, have been approved, said Trade and Industry Minister Rob Davies.

The grants will be disbursed to 10 projects in the next three years. They are expected to create over 11 000 jobs.

"The incentives will be utilised to offset expenditure in order to make applicants more globally competitive, when servicing offshore clients out of South Africa. The grants cover only a portion of the operational costs related to the project. 

"Disbursements are not made upfront but are paid only after confirmation that jobs have been created," said Davies on Wednesday.

There are no additional restrictions placed over and above the normal forex regulations on how companies can use their grants.

Davies was responding to a written parliamentary question in the National Council of Provinces (NCOP). 

The jobs created by the beneficiaries have to be in place for a minimum period of three years. This implies that if a company creates additional employment at the end of the third year, it will have to retain all jobs over a period of five years.

"There are no further restrictions preventing companies from ceasing operations after the incentive period," said the minister.

Companies that will receive grants include Old Mutual Assurance, Call Centre International and Amicorp South Africa.

In January, the department, as part of its efforts to strengthen the country's presence in the business process outsourcing and offshoring industry, announced a new set of incentives aimed at attracting foreign investment. - BuaNews

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