The Rise & Development of Remote Service Delivery in SA

In the last five years we have seen an exponential increase in demand, globally, for remote service delivery. A demand that was greatly influenced by the COVID-19 pandemic.

In a 2024 study by World Wide Worx, it was revealed that South Africa’s online retail sector alone has experienced a 29% increase from 2022.

Remote service delivery can refer to two forms of services provided;

The first refers to the ordering of goods or in-person services online; like buying groceries through Checkers Sixty60 or booking a gardener via My Smart City. Services delivered physically to your home.

The second involves accessing services through digital communication channels, such as remote tech support, virtual healthcare consultations, or online education platforms.

Both models play a growing role in bridging service gaps.

Increasing digital literacy and access to mobile devices continue to empower more South Africans to engage with services in new ways.

As people grow more accustomed to the speed and ease of digital transactions, the demand for remote service delivery continues to grow.

The convenience and time-saving factors of on demand services has led to an estimated 40% of South African adults utilising online shopping.

Remote service delivery grants consumers greater flexibility - providing access to more options, enabling consumers to compare providers and prices.

Online shoppers can avoid crowded stores and long queues, a heightened concern after the COVID-19 pandemic, which can be extremely beneficial for the elderly or disabled.

Remote service delivery can also reduce travel costs compared to in-person shopping.

Other remote services include receiving online consultations or digital prescriptions from doctors, completing online courses or receiving online tutoring. These services provide consumers with immediate and easy access to services that may have been previously unavailable to them.

The lockdowns of the COVID-19 pandemic introduced new ways of interacting online which, post-pandemic, has enabled those who may not have had access to services, due to factors such as lack of available transportation, physical barriers like illnesses – or even costs, to access these services.

The cost efficiency of remote services is a contributing factor to the increase in demand; oftentimes the cost of an online doctor’s appointment, or online higher education, is lower than the cost of attending these facilities in-person.

Remote service delivery doesn’t just benefit consumers; but also offers significant advantages for businesses.

By enabling remote work, companies can reduce overheads like office space and utilities, while accessing a broader talent pool unconstrained by geography. At the same time, digital platforms allow businesses to expand their customer base, offering services across regions and shipping products internationally.

The increasing demand for remote service delivery has not, however, been without any challenges.

Concerns over the security of credit card information and complicated checkout processes are significant factors leading to abandoned carts. Many online shoppers are still skeptical of the security of this service, with only 18.6% regarding it as completely safe to shop online.

Remote service providers need to ensure that their customers are kept satisfied by providing seamless, and secure, transaction processes. Partnering with verified providers and maintaining as much transparency as possible also play a role in the overall success of a business.

With the widespread access to social media, maintaining positive reviews and customer sentiment is essential. Negative customer experiences can be detrimental to a business in the digital age.

As demand for remote services continues to grow, these offerings are becoming increasingly integrated into smart ecosystems - highly connected environments that enable real-time data exchange and information flow. This integration enhances efficiency, fosters innovation, and supports the development of smarter, more connected cities.

My Smart City is contributing to this evolving landscape by meeting the demand for remote service delivery, offering access to fully vetted service providers, secure payment options, and a platform that strengthens the connection between citizens and their cities.

Stats retrieved from: https://www.worldwideworx.com/onlineretail2024/