Yahluma: A Sustainable Business Model?

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CASE STUDY. In September 2007, Pindiwe Holomisa and Nomaciko Ngoasheng, started Yahluma Solutions Ltd with the intention of building a contact centre in Buffalo City (Eastern Cape), and making use of a Department of Trade and Industry (DTI) incentive to encourage the establishment of business process outsourcing and offshoring (BPO&O) businesses.

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Abstract

In September 2007, Pindiwe Holomisa and Nomaciko Ngoasheng, started Yahluma Solutions Ltd with the intention of building a contact centre in Buffalo City (Eastern Cape), and making use of a Department of Trade and Industry (DTI) incentive to encourage the establishment of business process outsourcing and offshoring (BPO&O) businesses. The Buffalo City centre would take nearly a year to complete. In the meantime, client demand and the desire to earn incomes had led the two to offer part-time outsourcing services, using call centre infrastructure and facilities rented from a disaster recovery (DR) company. In June 2008, having achieved success in the rented facilities, the two were considering how best to ensure that they made the transition to the Buffalo City centre successfully. Critical comment from the industry suggested that the fully-owned option, requiring an enormous investment, was a huge risk, especially for first-time operators.

Teaching Objectives

To develop an understanding of successful start-up strategy.

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