By Larry Claasen      
 
The City of Johannesburg is putting together a package of incentives in an effort to attract call centre companies into the dilapidated central business district.

The city's support for the call centre industry will include the establishment of a special zone in the CBD that will provide good quality telecommunications infrastructure.

It will also build a database of skilled people that companies can draw on.  Business process outsourcing (BPO) - where companies in developed countries outsource business functions to countries where they can be done cheaper - has been identified by government as one of the best ways of attracting foreign investment and denting SA's high unemployment figures. 

Keryn House, CEO of ContactInGauteng, a provincial representative body, points out that 60% of the call centre industry in SA is based in Gauteng. 

She says SA will never be able compete with countries such as India on cost, but it is becoming more competitive, especially in quality of service.  The move to establish SA as a preferred base for call centres has strong backing.

For the second year in a row, President Thabo Mbeki used his state of the nation address to highlight BPO as a way of accelerating economic growth. 

The sector could generate up to 600 000 jobs in Johannesburg within the next six years, says David van Niekerk, a programme manager in the City of Johannesburg's economic development unit. 

Van Niekerk says the city's call centre package will be finalised only next year but it is already offering some incentives.

Companies setting up in the CBD can already get a tax deduction in the form of an accelerated depreciation allowance. 

Once the special zone is up and running, companies will also be able to enjoy reduced telecom tariffs when using the city's telecom infrastructure. 

The zone will address concerns over inadequate telecom infrastructure in the CBD as it will provide a base for high-speed broadband access for companies operating from it.  The city still has to come up with an official name for the zone and location.

Van Niekerk says it will probably be near the headquarters of several banks, in the heart of the city. 

The CBD is an idea location for call centres, says Charnell Hebrard, the project manager for call centres in the city's economic development unit.

It is a transport hub, has offices and parking facilities in place, and has a pool of skilled people living near it. 

Johannesburg is not the only city in SA trying to attract call centre investments.

A recent Deloitte report estimated that there are 167 contact centres and BPO operations in Cape Town, employing more than 14 000 people. 

Van Niekerk plays down suggestions that Johannesburg and Cape Town are competing head-on with one another for call centre investments.

He acknowledges that there is some competition but says that Johannesburg is also prepared to co-operate with Cape Town in attracting new investments.