EGYPT – A LEADING OUTSOURCING DESTINATION

The Egyptian IT-BPO Sector has set itself an ambitious target for increasing the country’s share of global outsourcing market. Egypt has all the fundamental ingredients required to grow as a major outsourcing force. Egypt IT-BPO industry aspires to achieve export revenues of USD 1.1 billion in the year 2010.

In Egypt, the national ICT industry is emerging as a role model of deregulation and privatization as well as a catalyst for reform in other sectors. This industry sector has managed to maintain a growth rate of 20% CAGR, and attract local and foreign investments of more than USD $8 billion over the past three years.

Local, regional and international companies, including Orange, Vodafone, Microsoft, Oracle, Wipro, Teleperformance and IBM have already invested to build global service delivery centers in Egypt.

HIGHLIGHTS

The global offshoring and outsourcing market presents interesting opportunities for the Egyptian IT/BPO industry. The Software and services market continues to lead the global IT spending market, accounting for USD 1.2 trillion – over 71 percent of the total spend in 2007 (USD 1.7 trillion). The offshoring addressable market for IT services is US $ 220-250 Billion with US and Western Europe accounts for a over 75% of the addressable market. The addressable market for BPO services is US $ 160-190 Billion and US and Western European markets contribute over 70% of the market.

Independent experts have already recognized Egypt as a potential hub for outsourcing activities. A global study carried out by the Global Services and Tholons ranked Cairo 7th in its list of the top 50 emerging outsourcing cities, citing Egypt’s multilingual skill-set amongst key strength. The UK National Outsourcing Association (NOA) named Egypt – “Offshoring Destination of the Year for 2008”. We believe that Egypt can participate in the growth of the global offshoring and outsourcing market (described above) as a scale delivery player driven by the following advantages:

o With a large talent pool of 330,000 graduates annually, Egypt is uniquely positioned to be a scale delivery location for US and European markets. Egypt’s multi-lingual workforce is appealing to multinational customers and providers looking to enhance their global delivery footprint. In addition to this, Egypt shares a time zone proximity with many European cities and a better shift timings for North American markets, making doing business easier and could complement delivery centers based in India, Philippines, China and Eastern Europe.

o Egypt provides a sustainable cost-effective delivery solution providing a cost structure which is competitive when compared to other emerging locations and similar to delivery costs in India. The high unemployment and underemployment, low wage inflation and stable currency will ensure future sustainability of the cost structure.

o Egypt is well-placed to tap the attractive Western European market (due to the language strengths) and the Middle Eastern market (due to unique commonly understood Arabic dialect by GCC countries). Because of its longstanding tourism industry and familiarity with Western and Middle Eastern culture, Egypt’s workforce will provide an attractive gateway to provide delivery solutions for the Western European and Middle Eastern markets.

o Driven by strong government support, Egypt provides a conducive business environment for leading multinational investors. The Egyptian government has undertaken a series of reform to ensure creation of a world-class regulatory and policy framework. ITIDA drives the implementation of several programs (notably in talent pool enhancement) to ensure sustainability of the industry. Amongst other initiatives, ITIDA is striving to enact a world class data security and intellectual property protection framework to augment the existing Intellectual property protection law introduced in 2002 (under law 82).

o Egypt has made significant investments to ensure availability of world class infrastructure. The existing world-class telecom infrastructure is complemented by the existing Smart Village business park and the planned Maadi BPO Park.

EGYPT’S VALUE PROPOSITION

• Winning the War for talent – Large and Multilingual Workforce
Egypt produces annually a large pool of graduates of over 330,000 includes a strong 31,000 potential specialist workforce with engineering and computing degree and over 100,000 graduates suitable for BPO services. This is a very strong pool, which is available for working in technology and business service companies. The Egyptian Government has also initiated and funded many key workforce development initiatives, which will help generate around 5000-6000 graduates for the IT-BPO industry every year with plans to scale these talent enhancement initiatives to at least 40,000 graduates per year in the next 3-4 years.

Egypt has another key talent pool strength; multilingual skills including English, French, German, Spanish, Italian, Portuguese, Dutch and Arabic are currently serviced out of Egypt. This positions Egypt favorably amongst other emerging outsourcing locations. In addition to this, over half of the Egypt’s 80 million inhabitants are aged between 15 and 39. We believe that given the intrinsics of the talent pool, Egypt will have a talent surplus for at least the next five years to sustain the current growth trajectory of the Egyptian IT-BPO industry of over 30-40% annual growth.

• A cost-effective sustainable location
Egypt is a cost effective destination for outsourcing services. Costs of doing business are significantly lower than in Eastern Europe and other emerging markets. Egypt also has some of world’s lowest telecom and internet rates. This is important for IT and BPO industry. In addition, Egypt’s low wage inflation of just five percent (annually), compared to 10-15 per cent in other emerging locations and the limited currency fluctuation of the Egyptian Pound with respect to US dollar, means that the costs of operating in the region will remain stable.

• Proximity to Middle East and European Market
Egypt proximity to Middle East and European countries makes it a strategic location for companies targeting these markets. Time zone similarities with European and middles east mean that unlike outsourcing destinations in Asia-pacific, Egypt’s working hours are more akin to target markets. This also plays well for large IT-BPO companies, which are looking for a strategic global service delivery location from where they can serve both Middle East and European market. The alternative outsourcing destinations like countries in Middle East and Eastern Europe are far too expensive place to start and sustain a business.

• Strong Government Support and conducive business environment

Egypt’s government is committed to development and economic liberalization – a trend which has gathered pace since the appointment of Premier Dr. Ahmed Nazif (a former Minister for Communications and Information Technology), alongside a group of young and business orientated ministers in 2004. Egypt is undergoing an unprecedented phase of development, which is largely attributed to sound policies, monetary reforms and global partnerships. In order to attract direct foreign investment, various packages of incentives (training grants and attractive telecom/connectivity costs), for which Egypt and its outsourcing partners enjoy key advantages. Substantive reforms in the taxation and duty policies have been implemented and recognized the global community (World Bank rated Egypt as the leading reformer in 2007-2008). For the ICT sector, the government has introduced anti-trust and a unified tax law reducing software piracy, tariffs on ICT imports, and addressing many of the legislative, trade, and non-trade barriers to build a strong ICT industry.

ITIDA is working on a host of initiatives to ensure sustainable growth of the industry. Notable among them are talent pool enhancement programs to ensure that the Egyptian talent pool develops the necessary skills to compete in the global labour market. A flagship initiative is the EduEgypt program, a BPO foundation skills program for over 4000 final year students which has been implemented in over 16 faculties in 3 universities (Cairo, Ain Shams and Alexandria) with the help of leading experts such as Infosys, IBM Daksh, Firstsource, Hewitt and Eduquity.

ITIDA is focused on enacting an intellectual property law and data protection aligned with international standards. In Egypt, Intellectual property protection law was introduced in 2002 under law 82, indicating the Egyptian government’s commitment to protect investors’ intellectual property. Furthermore, Egypt has continuously improved its ranking in the IDC Global Software Piracy study. The Piracy rating has improved from 69% in 2003 to 60% in 2007, well below other IT-BPO locations such as Morocco, the Philippines, and Bulgaria. There are stringent privacy protection articles within certain verticals, such as banking and healthcare sector. ITIDA is working closely with the Ministry of Communications and IT and industry players and has proposed a new data protection Act consistent with EU directives and US federal regulatory framework, which is under review with concerned stakeholders. Till the new Act is in place, Egyptian industry players have been provided the necessary guidelines to design the contact accordingly to meet the customers’ requirements/expectations on data security/cyber security issues on any project.

• Investing in a world class infrastructure
The Egyptian government has invested heavily in achieving world class infrastructure facilities to support the booming outsourcing market. Egypt already has world-class telecom infrastructure because of Egypt’s access to the major under-sea cables through its landing stations in Alexandria and Port Said. ITIDA had also realised the need to establish a modern business park to be the flagship hub for ICT development. The Smart Village in Cairo stretches over 600 acres and accommodates multinational and local telecommunications and IT companies, financial institutions and banks, together with related government authorities. Currently, over 20,000 professionals run the operations of more than 100 local and international companies and institutions at the Smart Village, and the number is expected to exceed 40,000 by the end of 2014. A second park is under construction in Cairo – the Maadi BPO Park – which will house a further 45,000 employees specialising in serving the call centre industry.

Egypt also has the potential to become a multi-city outsourcing location. In addition to the excellent infrastructure, services and talent pool provided by our capital city Cairo, other cities will ultimately support our outsourcing market. These include: Alexandria, the country’s second largest city, which benefits from excellent connectivity thanks to its two airports and two ports; El-Mansura, an important commercial and industrial city; and Asyut, the home of the University of Asyut, one of the largest universities in Egypt.

About ITIDA
The Information Technology Industry Development Agency (ITIDA) is public-private partnership between Egypt’s Ministry of Communications and Information Technology and the ICT industry. It is responsible for growing and developing Egypt’s position as a leading global outsourcing location by attracting foreign direct investments to the industry and maximizing the exports of IT services and applications.

Located in the heart of the modern business environment at Smart Village, the six hundred acre business park on the outskirts of Cairo, ITIDA is a self sustainable entity that drives the IT industry in Egypt and raises awareness among the Egyptian people of the benefits and use of ICT to advance socio-economic welfare of the whole community.

I can help you select Egyptian offshore vendors based on your needs free of charge.  Feel free to drop me a line at  ghoneim.aly@gmail.com

Untill then, Happy Outsourcing!

official website  (eduegypt)
http://www.eduegypt.gov.eg/

هناك 4 تعليقات:

  1. يا جماعة الى محتاج معلومات أكثر عن نظام Call Center Outsourcing

    يدخل على الموقع دة ممتاز جدا و هيفييد طلاب كثير جدا وخاصة الى فى المنحة

    http://www.outsourcingintelligencenetwork.com

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  2. وقد تطورت صناعة الهند ببو ونضجت لتقديم أعلى نهاية الخدمات التي تتطلب تحليل الحكم القائم على نطاق والخبرة ، بدلا من وظيفة محددة ، ومعايير الأداء القائم على القواعد وحدها. كما مقدمي الخدمات نسعى جاهدين لتقديم الخدمات من طرف إلى نهاية ، ونحن نرى تراجع ببو إلى قطاعات مختلفة. في نهاية واحدة من الطيف غير التقليدي القائم على قواعد المعاملات الاستعانة بمصادر خارجية ، بينما في الطرف الآخر هو الحكم القائم على معالجة المعاملات وخدمة كاملة العمليات التجارية الاستعانة بمصادر خارجية.
    فازت الهند على توتنهام وجهة في العالم الاستعانة بمصادر خارجية في الاختيار. البلاد حاليا على حصة القائد من السوق العالمية الاستعانة بمصادر خارجية.
    الهند هي بلا شك الأكثر رعاية تكنولوجيا المعلومات / ببو جهة من العالم. وهذا يثير التساؤل لماذا تهتم معظم الشركات المتعددة الجنسيات الكبرى في الاستعانة بمصادر خارجية عملياتها لاسناد في الهند. الجواب بسيط جدا والهند هي موطن للموارد البشرية الكبيرة والماهرة. الهند لديها القوة الكامنة ، والتي جعلت من نجاح كبير كوجهة الاستعانة بمصادر خارجية. تنتج الهند أكبر عدد من الخريجين في العالم. وأصبح اسم مرادف مع الهند التي من اسناد وصناعة تكنولوجيا المعلومات ومن هنا جاءت تسميته ببو الهند.
    إلى جانب كونها سليمة من الناحية الفنية ، وقوة العمل يتقن الانكليزية والعمل على أجور أقل مقارنة مع غيرها من الدول المتقدمة في العالم. الهند أيضا لديها ميزة واضحة على وجودها في منطقة زمنية مختلفة أن يعطيها المرونة في ساعات العمل. كل هذه العوامل تجعل اسناد الهندي أكثر كفاءة وفعالية من حيث التكلفة. من أجل تلبية الطلب المتزايد الدولية لمراكز مربحة العملاء التفاعل ، العديد من المنظمات في جميع أنحاء العالم يتطلعون إلى الهند ببو.
    مجموعة فرعية من الاستعانة بمصادر خارجية ، العمليات التجارية الاستعانة بمصادر خارجية (ببو) ينطوي على عمليات التعاقد والمسؤوليات من خلال موفر خدمة الطرف الثالث. من العامين الماضيين ، وقد تطورت صناعة التعهيد والقطاع الأكثر جوهرية في السوق الهندية. وقد برزت الهند كموقع الأكثر رعاية لجميع الخدمات ببو في جميع أنحاء العالم. وقد تسارع هذا الاقتصاد الهندي على هضبة ، وزيادة تدريجيا إحصاءات تصور النمو في السنوات المقبلة وكان من المتوقع أنه بحلول عام 2020 ومع ذلك ، سيتم تقديم أكثر من 80 ٪ من سكان العالم من العمليات التجارية الاستعانة بمصادر خارجية الخدمات التي تقدمها الهندي الشركات. وضعت أفضل مكان لتحقيق خدمات عالية الجودة على الصعيد العالمي ، وصناعة ببو هو تعزيز تأسيسها في الهند.
    http://phykon.com

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  3. thanks bradwilliam for your wonderful feedback *____*

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