Jordan - Outsourcing Destination


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Jordan - Outsourcing Destination

  1. 1. JORDAN
  2. 2. Advertorial Interview of Country Representative Stable Costs and High Quality of Talent Pool is Jordan’s Primary Value PropositionHow is the Jordan economy growingpresently, and what are the projections forthe immediate future?Jordan has focused on creating a globallyintegrated economy that is knowledge-centric. Over the past two decades, prudentfiscal and monetary policies have helped inmaintaining low inflation rates in the range of3-5 percent and a stable currency. Exports inthe country increased from USD 4.3 billion in2005 to nearly USD 6.3 billion in 2009. His Excellency Marwan Juma Mr. Aiman Mazahreh Minister of Information & Chairman-Int@j Communications TechnologyExternal debt during the period decreased Jordan is fast emerging as a destination offrom 56 to 21.7 percent. Gross official reservesat the end of 2009 stood at USD 10.8 billion.Jordan has adopted aggressive and choice for outsourcing.comprehensive development processes withactive participation from the private sector to the economy, and produce14,928 direct Together with attractive incentives,which are targeted at creating an investment- jobs. Exports have increased with an average investor-friendly policies and excellentfriendly climate in the country. Many of 343 percent in comparison to 2007, while infrastructure, Jordan has everythingbusinesses are finding Jordan to be one of the investments increased by 164 percent. The required for a smart outsourcingmost liberal and business-friendly economies industry is expected to grow to USD 250 destination. Jordan’s progressivein the region. million over the next three years, creating government has also recently launched a over 10,000 jobs. The outsourcing sector is new Development Zone strategy, further supported by Jordan being one of encompassing multiple specialized zonesHow did the outsourcing industry evolve in the initial countries in the region to establish at specific industries such as outsourcing.Jordan and what is the expected growth in a chapter of the International Association of These development zones offer aggressivethe industry? Outsourcing Professionals (IAOP). This financial incentives to complement existingJordan, as an outsourcing destination, started reflects on the growth of the country as an economic advantages of operating ingaining prominence a decade ago. Key outsourcing destination and provides an Jordan.potentials for the growth of the industry such extremely conducive environment foras a qualified workforce, competitive cost service providers and shared services What are the infrastructurestructures, a near-shore location and a organizations. requirements of the industry and howconvenient time zone were identified early well does the country meet theseon. Strong government backing was provided What are the key factors that contribute requirements?with world-class infrastructure, dedicated into making the country an outsourcingbusiness parks and a liberal economic Jordan has one of the most open destination of choice?environment. Today Information and telecommunication markets in the MiddleCommunication Technology (ICT) and Jordan’s primary value proposition lies in its East which is overseen by an independentInformation Technology Enabled Services stable costs, and the high quality of its talent regulator. Jordan is connected to the(ITES) industry both contribute 14.3 percent pool that is sustainable in the long-term. international network through various fiber ...continued
  3. 3. Advertorial Interview of Country Representative...continued from previous pageoptic links, in addition to satellite connectivity government taking to ensure quality of by integrating technology in theand terrestrial links with neighboring talent and how are you ensuring classrooms. Intel Teach Initiative has beencountries using modern fiber optic cable scalability of the available talent? introduced as a worldwide program thatnetworks. Jordan has three main submarine focuses on using computer technology as acables that provide reliable international Jordan has a young population with nearly powerful teaching tool and enhances theconnectivity. In addition, Damamax is part of 70 percent under the age of 30. Jordan has creativity levels of both teachers andthe Hong Kong Telecom Group PCCW’s Global one of the most successful education students. An MoU was signed betweenNetwork, providing MPLS connectivity to systems in the region with a literacy rate of Microsoft and the Ministry of Education inmore than 1,000 cities worldwide at very 92 percent. The country is ranked first in the 2003 that focuses on creating ancompetitive prices. Middle East by the World Bank in terms of Innovative Teachers Network (ITN), a educational reforms. The government School Technology Innovation CenterThe country has developed dedicated spends 20.6 percent of its public (STIC) and an Education Support parks within the Development expenditure on the educational system.Zones to nurture the growth of its priority English is being taught at an early age in all The government is providing computersectors, such as ICT and BPO. These business schools, and modern technologies and labs in all public schools and universities asparks offer plug-and-play office space, methods have been introduced in the part of its comprehensive e-learningconnectivity and services to local and educational system to ensure technology program. A country-wide broadbandinternational firms and a streamlined process proficiency. network connecting all public schools,of setting up operations. universities, community access centers and There are a number of public-private community colleges is also being initiatives that are focused on creating a deployed.People are a key asset in this industry. knowledge-based economy in the countryWhat measures are the industry and the
  4. 4. Outsourcing Oasis of the Middle East Advertorial The Jordan FactfileJordan, located where Africa, Asia and Europe converge, is ideally positioned asan investment gateway to the Middle East.The country’s robust economy, huge talent pool of human capital, temperate climate, convenienttime-zone, state-of-the-art infrastructure and the ongoing economic liberalization proceduresmake it one of the most preferred destinations for outsourcing firms. Jordan’s immense humancapital is one of the main drivers of growth in the region. A workforce, widely regarded as one ofthe most competitive and qualified in the region, has contributed to Jordan being ranked ninth inthe 2009 Global Service Location Index (GSLI) by analyst firm AT Kearney. Strong work ethics andlow attrition rates work in Jordan’s favor. Jordan invests more than 20.4 percent of its GDP oneducation and has more than 200,000 upcoming graduates to meet the demands of the fastgrowing outsourcing industry.Jordan possesses world-class infrastructure in terms of Internet connectivity, telecommunicationsnetwork as well as transport accessibility within the country and to international destinations.Dedicated business parks which boast of international standards of connectivity and services havebeen set up in Amman and Irbid to nurture the growth of the BPO industry in the country. Theseparks offer a streamlined regulatory environment and various tax benefits, coupled with high-endhousing and associated facilities to attract and retain further investment in the outsourcing sector.Jordan enjoys strong government support and reliable telecom connectivity through variousinternational submarine cables for its ICT sector. This has made it the fastest growing sector in theJordanian economy with an annual average growth rate of 25 percent. The ideal location of thecountry, investment-friendly economic climate and competitive rates contribute to the steady riseof Jordan as a preferred outsourcing a glanceCurrency: Jordanian Dinar Countries that outsource business to Jordan: Gulf Cooperation Council (GCC) countries, US, UK, Middle EastMain industries: Tourism, Banking & Financial Services, and North Africa (MENA) regionEngineering Services, Healthcare & Pharmaceuticals, Energy &Renewable Energy, Information & Communications Technology Key verticals: Healthcare, Banking, Insurance, Telecom, Hospitality, TechnologyLiteracy rate: 92% Key services: Business Process Outsourcing,Languages spoken: Arabic (official), English, French, German, Information Technology Outsourcing, Knowledge ProcessArmenian, Spanish Outsourcing, Shared Service Centers and contact centersInternational airport: Amman (2), Aqaba Some big players: Hewlett-Packard (HP), Dell Perot Systems, CISCO TAC, CrysTelCall, Extensya, Aspire Services, Microsoft, OracleGDP growth (World Bank): 2.8% (2009) Key competitive advantages: Robust Economy, Strategic Location thGlobal ranking: 9 in the 2009 Global Service Location and Convenient Time Zone, Immense Human Capital Resources,Index by analyst firm AT Kearney Investor-friendly Economic EnvironmentQuick look at the IT-BPO sector growth Main cities: Amman, IrbidTotal number of employees: 14,928 Emerging locations: AqabaAnnual growth rate of IT/BPO sector: 25 percent
  5. 5. Advertorial Opportunities and Future Potentials The Face of Jordan Now and BeyondJordan’s commitment to economic liberalization and its privatization program have been recognized by theWorld Bank. The World Bank lauded the privatization program as one of the most successful programs inthe Middle East and North Africa (MENA) region.Jordan has created a competitive, free market Jordan’s strength lies in the ICT, health and Jordan is also taking necessary steps tothough a multi-pronged privatization financial sectors. The growth of the enhance the existing infrastructure base inapproach. Today, the private sector plays a outsourcing industry is expected to the country. In 2010, VTEL Jordan andmajor role in spearheading growth and concentrate on these sectors by building Reliance Globalcom are establishing a linkdevelopment in the country. Jordan is now vertical specialization in financial services, to the FALCON undersea cable throughseen as one of the most business-friendly medical services, IT outsourcing, Aqaba which would triple the currenteconomies in the region. The government has telecommunications and tourism services. bandwidth. It will be the first Terabit cablealso taken significant steps to streamline landing in Jordan. The future of the ICT sector looks rosy withregulations and decrease red tape. the sector continuing its exponential The future of outsourcing in JordanEstablishing business ventures in Jordan now growth. Jordans National ICT Strategy for promises to be bright with an industrytakes less time than the average number of the next three years identifies the sub- poised for growth in all sectors. KPO anddays in the MENA region. sectors that are conducive for growth in the BPO operations are expected to head the current economic situation in the country. growth ably supported by concertedThe Development Zones established across Government initiatives to facilitate this efforts put in by the government and thethe country in key business areas offer growth are also laid out. The plans include private sector. An attractive businessreliable infrastructure, specialized services, developing a USD 3 billion ICT sector, environment, combined with supportivelabor and resources to access major regional provision of 35,000 jobs and increasing government policies and world-classand global markets. At present, there are six Internet penetration to 50 percent. Other ICT infrastructure, will continue to make Jordanzones that are operational throughout the initiatives include provision of laptops to one of the most sought after outsourcingcountry offering various investment university students, encouraging women in locations in the MENA region.opportunities. Jordan’s ICT sector today is the technology programs and graduate Contact info:fastest growing sector offering more than Int@j internship programs.80,000 jobs with an annual average growth Tel: +962 6 5152322rate of 25 percent. e-mail:
  6. 6. Quotes from Reports Advertorial TestimonialsJordan at the ninth place is another top multi-lingual agents with university designed to make Jordan more accessibleperformer as it has solid capabilities in IT and education, coupled with excellent language to the rest of the home to numerous successful outsourcing skills has been a compelling reason for thiscompanies that compete internationally. It growth. Jordanian telecom has invested over USDhas also one of the region’s most favorable 400 million in recent years in a number ofbusiness environments. It is clear that from the standpoint of technology solutions designed to make telecommunications, Jordan has made Jordan more accessible to the rest of the~ A.T Kearney Report 2009 significant strides over the past decade. In world. addition to the efficiencies still being realized by the deregulation of the telco ~ DatamonitorCurrently, there are several contact center sector in 2005, Jordanian telecom hasoperations in Jordan serving clients invested over USD 400 million in recentdomestically and offshore, across a variety of years in a number of technology solutionsvertical markets. In addition, the availability ofPublicationsIt looks like another little oasis of IT delivery is As to the cultural milieu, Jordan has an open have rendered it definitive advantages,building up as the vast sands of the Middle and welcoming arm. On the infrastructure including a favorable time zone, proximityEast blow winds of new market opportunity; side, areas like powers, roads and buildings to continental Europe and the countrysnow Jordan joins the club, as it gets all set to are positive. It has already been recognized perception as a stable oasis in a stormy, butwoo the outsourcing industry. on the eco-friendly distinction, where the vital, region. example of Amman, a building zone, is citedAt the Nasscom Summit 2009, foreign as an example, and an award-winning case Enthusiasts also point out that Jordaniansdelegations of many hues and shades were in masterful city planning. can offer relatively low compensation costs,seen exploring and selling business as well as exposure to English languages byopportunities in the new world order that is ~ Global Services Magazine virtue of its strong focus on education,shaping up for a post-recession scenario. We especially at the tertiary level.could see delegates from Jordan too. Theywere not only prepared for a strong ~ Jordan Business: Jordanian Magazinecompetitive pitch, but also had large To highlight the benefits, Jordan’sspoonfuls of the pudding’s proof up their geographic and geopolitical positioningsleeve.TestimonialsJordan is open for business with a very dedication has paid off, and businesses Development Zones.capable and sought after workforce, continue to succeed. Thanks to all thecompetitive cost structure, political stability, partners involved, the country continues to His Excellency Dr. Bilal Bashir Chief Commissioner, Development Zonesease of access, robust ICT infrastructure, as gain visibility as an outsourcing destination. Commissionwell as a government that is fully committedto creating the right investment environment. Som Mittal President, National Association of SoftwareThese are only some of the factors that and Services Companies (Nasscom)position Jordan as a great global destination Jordan has enabled the ITO/BPO servicesof choice as well as the ideal access point and industry and we run our operation supportedgateway to the Arab world. by a strong legislative base, a sound telecom infrastructure and skilful human capital whichHis Excellency Mr. Marwan Juma BPO investors will find in Jordan a highly really makes our business succeed. TheMinister of Information and Communications advanced legislative and infrastructure government is involved in updating the skillsTechnology platform that supports their work and of IT trainees to qualify them for our line of business endeavors. The Development Zones business. Commission (DZC) facilitates all necessaryComing to Jordan opened our eyes to the procedures and arrangements for the Kaushal Shahcountry’s potential. The country’s will and industry to operate and prosper in the Managing Director, Aspire