The investment will boost SA's business process outsourcing industry, which is expected to create 100000 jobs in the next few years.
The sector is known for call centre outsourcing, but other services include IT support, financial accounting, data analytics and legal services.
The government and the business process outsourcing industry are positioning SA as a preferred destination for outsourcing in an industry dominated by India.
Amazon's call centre will open in October. But it is not clear what exactly it will provide and Amazon plans to release all the details early next month.
"What I can say is that the call centre will support the US and German clients. Amazon is not trying to pursue local customers," said Fagri Semaar, interim CEO of BPeSA Western Cape.
Brent Jaye, director of Amazon's North America customer service, said it was "important to have customer service representatives available when it's convenient for our customers".
Amazon already operates a software development centre in Cape Town.
Semaar said Amazon's investments would assist the province's target of achieving 100000 jobs by 2014. "The business process outsourcing sector will play a meaningful role and is well positioned to contribute more to the employment target."
Alan Winde, Western Cape finance, economic development and tourism MEC, said the deal was not only creating jobs, "but instilling confidence in our ability to host world-class clients".
The government identified business process outsourcing as a priority sector for attracting foreign investment and creating jobs. So far 9000 direct and 27000 indirect jobs have been created. The target was 100000 jobs by this year but that was not achieved despite contracts for 24901 jobs having been signed.
To lure offshore investors, the government launched a R1bn incentive programme three years ago. The incentives, which are being reviewed, were based on capital expenditure such as technology hardware. Semaar said Amazon "hasn't thought of using incentives and this shows its commitment to invest in the country despite the incentives".
During the first quarter Amazon.com had sales of US$7,13bn, up 46% from a year earlier.
Amazon.com offers more than 40 categories of products and serves millions of customers around the world.
Source: Business Day
For more than two decades, I-Net Bridge has been one of South Africa’s preferred electronic providers of innovative solutions, data of the highest calibre, reliable platforms and excellent supporting systems. Our products include workstations, web applications and data feeds packaged with in-depth news and powerful analytical tools empowering clients to make meaningful decisions.
We pride ourselves on our wide variety of in-house skills, encompassing multiple platforms and applications. These skills enable us to not only function as a first class facility, but also design, implement and support all our client needs at a level that confirms I-Net Bridge a leader in its field.
Go to: http://www.inet.co.za
