There are encouraging signs of sustainable growth in South African economy but it is experiencing shortage of skills in high-level management skills. Some areas of South African economies are facing skill shortages due to graduate brain drain and an inequitable education system. Due to this South African companies are comfortable with outsourcing their specialized functions for which they do not require additional in house skills and can focus on developing competencies that are necessary for their growth.



A number of traditional supply-chain functions have come under the outsourcing banner, mainly in distribution and transportation. South Africa is witnessing a change in the outsourcing landscape and supply chain landscape. This has made it necessary that companies reconsider the value of outsourcing parts of their supply chain operations in the way they are done traditionally.