Budget likely to provide for call-centre incentives

Sneeky

Sneeky

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He said the proposed incentive would be in the form of subsidies to cover the cost of training during the first few months after a call centre had been established, and to assist with the acquisition of land.

Both forms of assistance will contribute to lowering the cost of doing business in SA. However, while the country scores highly on quality, it is unable to compete with others such as India because of the high call rates charged by Telkom.

October said the subsidies would not carry on indefinitely, but would last only until SA had developed a critical mass of call centres and would offer a slight cost advantage over the four- to five-year period expected for Telkom’s rates to decline under pressure from the second national operator.

Talks will take place with the national treasury on the proposal early next year with the expectation that provision will be made for it in the February budget.

Services Seta CEO Ivor Blumenthal has said SA would not become internationally competitive without government support.
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A good move in the job creation department, I really hope though that none of the money is used to subsidise the Telkom bills.
Providing a subsidy for 'land and training' is great but how does that add up to a 'cost advantage' and a cost advantage against what,, India?
If your core business expense is phone calls thats where the focus has to be surely.

Its a wonderfull initiative and I would like to see how its all is going to work, anyone have more info? Also 4-5 year period to drive costs down, expected I suppose, but bloody slow none the less.

http://www.businessday.co.za/articles/economy.aspx?ID=BD4A130033

:)
 
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