The BPO industry has embraced AI as a technology capable of improving operational efficiency, enhancing customer experiences, and supporting business growth. But inside South African call centres, the opposite is quietly happening.
As AI tools become deeply embedded into customer engagement environments, many operators are discovering that the real cost of AI is not the software licence – it’s the infrastructure required to run it.
From voice neutralisation software and real time call assistance to AI driven first line support and live agent coaching, the processing demands inside modern BPO environments have increased dramatically over the past 18 months.
What many providers underestimated was the backend impact. AI does not run for free. It requires compute power, memory, networking throughput, low latency environments, and increasingly expensive infrastructure to support it at scale.
The result is that many BPOs are now facing a difficult and expensive decision. One approach is to run AI workloads directly on endpoint devices. This means moving away from standard workstation deployments toward higher specification machines capable of handling AI assisted applications locally.
In practical terms, this is driving a noticeable shift away from traditional Intel i5 deployments toward growing demand for i7 powered devices on the call centre floor. AI enhanced workloads are forcing hardware upgrades far earlier than many refresh cycles originally planned for.
The second option is to keep endpoint devices relatively standard while shifting the AI processing burden into the backend environment. In this model, AI applications and workloads are hosted centrally on servers, reducing the processing demand on the user device itself. While this avoids large scale desktop upgrades, it introduces a different problem – significantly increased server infrastructure requirements.
This is where many BPOs are starting to feel the financial pressure. Backend server environments capable of supporting AI driven workloads require substantially higher compute density, increased storage performance, more advanced networking, and far greater scalability than traditional call centre infrastructure.
The cost of expanding on premises server stacks to accommodate these workloads is rising rapidly, particularly as demand for AI capable hardware continues to grow globally.
According to Gartner, worldwide spending on AI optimised servers is accelerating sharply as organisations race to support enterprise AI workloads, contributing to overall global IT spending reaching $6.15 trillion in 2026.
The third route many organisations are exploring is moving AI infrastructure off premises entirely through hyperscale providers such as Amazon Web Services or colocation environments like Teraco. In this model, the infrastructure is rented rather than owned, with AI workloads hosted externally and delivered to the BPO environment through cloud or hosted platforms.
While this removes the burden of large upfront infrastructure investment, it introduces ongoing rental and operational expenditure costs that must be managed carefully over time. For some BPOs, this creates far greater flexibility. For others, especially those operating at scale with strict latency and compliance requirements, the long-term cost equation becomes more complex.
What is becoming increasingly clear is that AI is fundamentally changing the economics of the BPO industry. For years, cost optimisation in call centres focused largely on labour efficiency. Today, infrastructure efficiency is becoming equally important.
The conversation is shifting from simply how many agents a BPO can support, to how much compute power it takes to support them effectively in an AI enabled environment. This is why the traditional procurement model is coming under pressure. Many operators still attempt to purchase server infrastructure outright through large capital expenditure projects.
But in a market where AI workloads are evolving rapidly, hardware demands are changing constantly, and infrastructure pricing remains volatile, locking large amounts of capital into fixed infrastructure is becoming increasingly risky.
A growing number of BPOs are instead exploring leasing and rental models for backend AI infrastructure. Rather than purchasing expensive server environments upfront, providers can deploy infrastructure through operational expenditure models that spread costs over time while maintaining flexibility as AI requirements evolve.
This approach also reduces the risk of overinvesting in hardware that may become insufficient or obsolete far sooner than traditional infrastructure cycles allowed for. In an AI driven environment, scalability and adaptability are becoming more valuable than ownership itself.
The uncomfortable reality is that AI is not automatically reducing operational costs inside BPOs. In many cases, it is increasing them. The difference is that the costs are shifting away from people and moving into infrastructure.
That changes everything, because the next competitive battle in the BPO industry may not be about who has the cheapest labour model. It may be about who can afford to power AI at scale.
About author: Sanjay Govender is Head of GBS/BPO Solutions at Qrent.
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Nigeria’s Flying Eagles could be handed a lifeline in their quest to qualify for the 2027 FIFA U-20 World Cup following reports that the Confederation of African Football (CAF) is considering including the team in the 2027 Africa U-20 Cup of Nations.
The development follows Ghana’s reported removal as hosts of the continental competition, potentially creating an opening for Nigeria to secure a place in the tournament.
Sports247 reports that CAF has informed the Nigeria Football Federation (NFF) to keep the Flying Eagles on standby for a possible invitation to the 2027 U-20 AFCON.
Nigeria initially missed out on automatic qualification after suffering a disappointing 4-1 defeat to Burkina Faso in the final of the 2026 WAFU Zone B U-20 Championship.
Burkina Faso secured the region’s automatic qualification ticket, while Ghana were expected to occupy the second available place as hosts of the continental tournament.
However, Ghana’s reported failure to meet CAF’s hosting requirements has thrown the arrangement into uncertainty, with the continental governing body expected to appoint a new host.
The situation could work in Nigeria’s favour, with the Flying Eagles potentially considered for the place initially reserved for Ghana as tournament hosts, having finished runners-up in the WAFU Zone B competition.
Although CAF is yet to make an official announcement confirming Nigeria’s inclusion, the reported development has raised hopes of a second opportunity for the seven-time African champions.
The 2027 U-20 AFCON will carry additional significance as it will also serve as Africa’s qualifying competition for the FIFA U-20 World Cup.
According to CAF’s qualification format, the four semi-finalists will represent the continent at the global tournament.
Nigeria’s possible inclusion would therefore provide the Flying Eagles with another opportunity to compete for continental honours and keep their World Cup ambitions alive.
The West African giants have a proud history at the FIFA U-20 World Cup, having finished runners-up on two occasions, in 1989 and 2005.
For now, Nigeria will await CAF’s final decision, with the reported development offering renewed hope after their disappointment in the WAFU Zone B final.
Tony Elumelu played a supreme role in getting investment bank Afrinvest back on track in 2011 after the global financial meltdown pushed the investment bank to the brink, its chief executive recalled in a letter to the tycoon seen by PREMIUM TIMES.
The multisectoral magnate, who is the top shareholder of United Bank for Africa, the Transcorp Group, and Seplat Energy, granted a soft loan of $1 million to Ike Chioke, the CEO of the financial institution, as a mark of urgent support when the firm direly needed the cash to recapitalise, the latter said.
“Fifteen years ago, Afrinvest was navigating one of the most challenging periods in its history, as we struggled to rebuild and recapitalise the business in the aftermath of the global financial crisis,” Mr Chioke said.
“At that critical juncture, when the future was far from certain, you made the remarkable decision to lend me US$1 million of your personal funds. You placed your confidence not simply in the prospects of a business but in me as an individual, my integrity, my determination and my conviction that Afrinvest could emerge stronger from adversity.”
This June, Mr Chioke eventually completed the repayment of the credit, according to the letter, describing the gesture as an extraordinary act of friendship, generosity and trust.
Mr Elumelu, whose economic vision is anchored on what he calls “Africapitalism” – an investment philosophy that prioritises the private sector’s role in democratising the wealth Africa needs to power large-scale growth, has been involved in active philanthropic initiatives on the continent.
In March, his foremost charity project, the Tony Elumelu Foundation, turned sixteen, and he said the initiative had disbursed over $100 million in seed capital to 24,000 entrepreneurs in Africa and created more than 1.5 million jobs over the period.
The foundation expects to fund an additional 3,200 entrepreneurs this year, it said in September.
Mr Chioke applauded the profound impact Mr Elumelu’s financial assistance has had on Afrinvest, notably transforming it into a diversified regional financial services group with an expanding universe of clients and operations in asset management, investment banking, research & consulting, and securities trading.
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