Egypt Presentation May 28.ppt


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Egypt Presentation May 28.ppt

  1. 1. Information Technology Industry Development Agency “ ITIDA” Eng. Amr Mostafa [email_address] [email_address] Director, Policies & Int. Cooperation
  2. 2. Introduction <ul><li>Governmental body established year 2004 under </li></ul><ul><li>e-Signature law-15 </li></ul><ul><li>Unique Board of Directors includes public & private </li></ul><ul><li>Financed by IT and communication sector in Egypt . </li></ul>
  3. 3. Mission <ul><li>Develop IT companies for world class & address new int. growth lines in (Export, FDI, Allied Marketing) </li></ul><ul><li>Develop & regulate e-Signature in Egypt. </li></ul><ul><li>Promote Intellectual Property Rights (IPR) for Software & Databases (law No: 82 for the year 2002) </li></ul>
  4. 4. <ul><ul><li>Formulate Egypt’s IT National Strategy in 2006 </li></ul></ul><ul><ul><ul><ul><li>Reaching $1.5 billion of Egyptian IT exports in the year 2010 </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Creating up to 50.000 job opportunities . </li></ul></ul></ul></ul><ul><ul><li>Develop existing companies </li></ul></ul><ul><ul><li>Create new lines of business i.e. Offshoring </li></ul></ul>Objectives
  5. 5. Objectives <ul><li>Build e-signature infrastructure : </li></ul><ul><ul><li>granted 4 Licenses to 4 private companies to operate as (Certificate Authorities). </li></ul></ul><ul><ul><li>establishing the first national Root CA for Egypt </li></ul></ul><ul><ul><li>license the government (CA) setup by Ministry of Finance & the Ministry for Administrative Development. </li></ul></ul>
  6. 6. <ul><li>Establish IPR Office to : </li></ul><ul><ul><li>Raise IPR awareness, encourage investments in software industry and fight S/W piracy . </li></ul></ul><ul><ul><li>Modify IPR Executive Regulations (establishing a supreme consultative committee for IPR in ITC) </li></ul></ul>Objectives <ul><ul><li>Signed agreement with WB for TA </li></ul></ul>
  7. 7. <ul><li>Draft Information Security & Cyber Crime Law (through a national task force led by ITIDA) </li></ul><ul><li>&quot;Smart Token“ Project </li></ul><ul><li>Encourage international business &quot;match making&quot; (participation of companies in regional & international conferences & exhibitions ) </li></ul><ul><ul><li>Cebit, Call Center Expo, </li></ul></ul><ul><ul><li>Outsource World New York, Offshore, </li></ul></ul><ul><ul><li>Systems Trade Fair, Gitex. </li></ul></ul>Objectives
  8. 8. <ul><ul><li>Support Software Engineering Competence Center (SECC) </li></ul></ul><ul><ul><ul><li>25 software development companies certified (CMMI) from 2nd to 5th level . </li></ul></ul></ul><ul><ul><ul><ul><li>The “Giving Away Awards” event </li></ul></ul></ul></ul><ul><ul><ul><li>22 Specialists in software testing received training from the IIST in cooperation with USAID/General Dynamics . </li></ul></ul></ul>Objectives
  9. 9. <ul><ul><ul><li>Awarded Rational Software license to 30 companies </li></ul></ul></ul><ul><ul><ul><li>3230 specialized software engineers and experts have been trained from 200 software companies since 2001. </li></ul></ul></ul><ul><ul><ul><li>Support Contact Centers through &quot;Customer Operations Performance Center&quot; to (training) </li></ul></ul></ul><ul><ul><ul><li>Improve the quality of software SMEs through Software Process Improvement Project. </li></ul></ul></ul>Objectives (continued)
  10. 10. Egypt’s ICT - An Invitation for Partnership EGYPT'S ICT STRATEGY 2007-2010
  11. 11. Contents <ul><li>Why Egypt? </li></ul><ul><li>ICT Sector: A Role Model for Reform </li></ul><ul><ul><li>ICT Sector Reform </li></ul></ul><ul><ul><li>ICT Indicators </li></ul></ul><ul><ul><li>ICT Industry and Export Growth </li></ul></ul><ul><li>ICT Strategy 2010 </li></ul><ul><ul><li>Further ICT Sector Reforms </li></ul></ul><ul><ul><li>ICT for Development </li></ul></ul><ul><ul><li>Development of the Export Oriented IT-enabled Services Industry </li></ul></ul><ul><li>Partnership Opportunities </li></ul><ul><ul><li>Nile University, a New Platform for Innovation </li></ul></ul>
  12. 12. Why Egypt? <ul><li>A regional hub linking the Mediterranean, Europe, Africa, Asia and the Arab World </li></ul><ul><li>More than 76 Million inhabitants with 22 million in the labor force, 41 % of the population are between 15 and 39 ages. </li></ul><ul><li>Strong and balanced diplomatic relations with all neighboring countries </li></ul>
  13. 13. Why Egypt? <ul><li>Intellectual Property Rights (IPR for S.W. Piracy) </li></ul><ul><li>Unemployment rate </li></ul><ul><li>Education </li></ul><ul><li>Business Environment </li></ul><ul><li>Government Support and Incentives </li></ul>
  14. 14. ICT Sector: A Role Model for Reform
  15. 15. ICT Indicators <ul><li>Mobile Users </li></ul><ul><ul><li>Penetration is at 28% </li></ul></ul><ul><ul><li>One of the highest growth rates in the world </li></ul></ul><ul><ul><li>The number of subscribers almost quadrupled in 3 years reaching 22 million subscribers </li></ul></ul><ul><ul><li>Over 1 million subscribers are being added monthly </li></ul></ul>
  16. 16. ICT Indicators .. Cont’d <ul><li>Internet users </li></ul><ul><ul><li>Internet penetration at 10% </li></ul></ul><ul><ul><li>A growing population of Internet users </li></ul></ul>
  17. 17. ICT Indicators.. Cont’d <ul><li>Investments by Telecom Companies </li></ul><ul><ul><li>An accelerated private sector investment in the telecom sector </li></ul></ul>
  18. 18. ICT Indicators ..Cont’d <ul><li>Telecom Companies Revenues </li></ul><ul><ul><li>The reform resulted in growth of the revenues by 30% annually </li></ul></ul>
  19. 19. I- Further ICT Sector Reforms <ul><li>Developing State-of-the-art communications infrastructure and services </li></ul><ul><ul><li>Integrating Egypt in the global infrastructure </li></ul></ul><ul><ul><ul><li>Licensing of new international submarine cables to consortiums of national and regional players </li></ul></ul></ul><ul><ul><ul><li>Licensing of new International gateways for voice and data </li></ul></ul></ul><ul><ul><ul><li>Licensing of a new second fixed operator to be online in 2009 </li></ul></ul></ul><ul><ul><li>Broadband and Converged services throughout Egypt </li></ul></ul><ul><ul><ul><li>Licensing of 3.5G services for ETISALAT and Vodafone in Egypt </li></ul></ul></ul><ul><ul><ul><li>Consultation for licensing of Wi-Max spectrum </li></ul></ul></ul><ul><ul><ul><li>Developing a new framework for licensing new triple play services for voice data and video </li></ul></ul></ul>
  20. 20. ICT Strategy 2010 EGYPT'S ICT STRATEGY 2007-2010
  21. 21. <ul><li>Public Private Partnerships as Key Strategy issue for ICT Development </li></ul>II- ICT for Development ICT for Governmen t ICT for Health E-content Education & Life-Long Learning ICT for All ICT for Development
  22. 22. Strategy Framework Multinational Support Human Capital Development Local Market Demand In-sourcing and Mega Companies (FDI) Capacity Building Export Growth IT Industry Info. Legislative Environment Telecommunications Infrastructure Innovation, Research & Development National Education Sys.& Research Cent.
  23. 23. Strategy Drivers Strategy Value Drivers Government Support Geographical Location IT Suppliers Human Resources Telecom Infrastructure Cost Base <ul><li>270K yearly college graduates including 17K engineers </li></ul><ul><li>Multi-lingual skills </li></ul><ul><li>Easy access to submarine cables (SEAMEWE, Flag) </li></ul><ul><li>High investment in local infrastructure </li></ul><ul><li>Competitive wages for juniors and senior </li></ul><ul><li>Low cost of living and overhead expenses </li></ul><ul><li>Strong presence of IT multinationals </li></ul><ul><li>World-class local system integrators </li></ul><ul><li>Prime minister and 3 ministers from IT </li></ul><ul><li>IT-specific support programs </li></ul><ul><li>Time zone </li></ul><ul><li>Physical proximity </li></ul>Large & Growing International Market Off Shore & IT enabled Services
  24. 24. Timeline Achievements 2006 2007 2008 2009 2010 <ul><li>Launch ICT strategy </li></ul><ul><li>Targeted in-sourcing program </li></ul><ul><li>ITIDA Capacity Building Program </li></ul><ul><li>International Training Center </li></ul><ul><li>IT Information Center </li></ul><ul><li>Financial support mechanism </li></ul><ul><li>Positioning and PR campaigns </li></ul><ul><li>2nd Venture Capital </li></ul><ul><li>1 st Mega Co. </li></ul><ul><li>IT awareness programs </li></ul><ul><li>Nile U and R&D </li></ul><ul><li>$300M in exports </li></ul><ul><li>2 nd Mega company </li></ul><ul><li>Expanded training programs </li></ul><ul><li>$500M in exports </li></ul><ul><li>$700M in exports </li></ul><ul><li>$1.1B in exports </li></ul>
  25. 25. Incentive Packages for IT Offshore investors in Egypt <ul><li>Incentives can be flexible to suit specific export-only investors </li></ul><ul><li>More incentives for bigger investment commitments and greater employment capacity </li></ul><ul><li>VoIP for voice services </li></ul><ul><li>Support on cost of telecom infrastructure services </li></ul><ul><li>Assistance in selection of suitable location </li></ul><ul><li>Support on cost of premises </li></ul><ul><li>Existing packages can be customized </li></ul><ul><li>MCIT open to new ideas and investor requests </li></ul><ul><li>“ Your curriculum, your trainers” </li></ul><ul><li>MCIT cost support of 80% to 100% </li></ul>Other Premises Telecom Training
  26. 26. Focused on Lines of Business <ul><li>Off-shore “Outsourcing / In-sourcing-FDI” </li></ul><ul><ul><li>ITO/Contact Centers </li></ul></ul><ul><ul><li>BPO/KPO </li></ul></ul><ul><ul><li>Engineering & IT Enabled Services </li></ul></ul><ul><ul><li>Content Development & Management </li></ul></ul><ul><ul><li>R&D Engineering </li></ul></ul>
  27. 30. Targeted Off-Shoring Sub-Sectors Development and management of Arab/Islamic content for all IT-enabled devices: internet, mobile devices, DVDs, multimedia, etc. Content Development & Management R&D, prototyping, development, testing, maintenance, support and development for next generation products R&D Engineering Knowledge intensive high-end processes, including advanced analytical and technical skills as well as some decision making Knowledge Process Outsourcing (KPO) Shared service centers (captive or outsourced) for business functions; includes: human resources (HR); finance and accounting (F&A); sales, marketing and customer care; supply chain management Business Process Outsourcing (BPO) Call centers and other CRM methods requiring technical knowledge to provide support to internal and external customers of companies that deliver technology-enabled products and services Engineering/Technical Support Centers Call centers and customer relationship management through other methods, including e-mail newsletters, postal mail catalogs, Web site inquiries and chats Contact Centers Software maintenance and support; IT management; hardware management and support; development and integration Definition IT Services Sub Sector
  28. 31. Export Targets USD 1.1 Billion EGYPT'S ICT STRATEGY 2007-2010 Target Revenue R&D/Engineering $280 m Contact Centers BPO Services Localization Arab Content KPO Services IT Products * Technical Support $100 m $30 m $40 m $200 m $75 m $200 m $45 m $115 m IT Services CAGR 27% 38% 43% 22% 46% 72% 27% 25% 50%
  29. 32. Egypt ranked first among new entrants in the A.T. Kearney Global Services Location Index in 2005 Ranks 1-20 Ranks 21-40 UAE Hungary Poland Mexico Slovakia Bulgaria Jordan Indonesia Egypt US (Tier II) Brazil Canada Chile Czech Republic Thailand Singapore Philippines Malaysia China India 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Turkey Ireland Spain Portugal Panama France (Tier II) New Zealand Israel South Africa Germany (Tier II) Tunisia Australia UK (Tier II) Russia Vietnam Jamaica Romania Argentina Ghana Costa Rica 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 Source: A.T. Kearney 2005 Global Services Location Index Global Location Services Index 2005 Financial People Environment
  30. 33. III - Development of the Export Oriented IT-enabled Services Industry <ul><li>Promoting ICT Investment & FDI for sustaining an annual growth rate of more than 20% </li></ul><ul><li>Develop a conducive ICT environment to attract FDI and Business Process Outsourcing and Knowledge Process Outsourcing </li></ul><ul><li>Develop a strategy to foster exports of ICT enabled services to increase from 350 Million USD in 2007 to 1.1 Billion USD in 2010 and adding another 20K jobs </li></ul><ul><li>Develop strategic partnerships with multinationals to increase investments, exports, employment and support technology transfer </li></ul>
  31. 34. Investments by MNCs in Egypt Company Activities IBM Software Development Center of 400+ skilled IT developers Mentor Graphics Design Center of 170+ engineers Intel Regional Platform Definition Center Regional Software Enablement Lab Microsoft Developer Support Center for Regional Developers Software Innovation Center CISCO Core competency e-learning institute Oracle Global Support Center with 600+ Engineers Orange Global Support Center with 1200+ Engineers Alcatel Lucent International Support Center with 300+ Engineers Satyam BPO Services with 200+ Engineers ZTE & Huwaei Verizon Business Wi-Max R&D centers $10,000,000 investment with Telecom Egypt
  32. 35. Investments by MNCs in Egypt Company Activities Wipro Teleperformance Telcordia Technologies SpinVox AC Nielsen
  33. 36. Egypt’s ICT Exports Contact Centers Open Craft R&D/Engineering Design IT Services Technical Support Centers Arabic Content EL MUTAHADA NAHDAT MISR IT Products
  34. 37. Egyptian Companies with Global Activities <ul><li>Orascom Telecom </li></ul><ul><ul><li>Mobile operator in Africa, Middle East and Europe </li></ul></ul><ul><ul><li>Internet Operator </li></ul></ul><ul><li>Telecom Egypt </li></ul><ul><ul><li>Jordan, Algeria </li></ul></ul><ul><ul><li>Exceed </li></ul></ul><ul><li>Quick-Tel </li></ul><ul><ul><li>Exports of hardware </li></ul></ul><ul><li>NTC </li></ul><ul><ul><li>Saudi license </li></ul></ul><ul><li>IST (EGYPT) </li></ul><ul><ul><li>Considered by Cisco to be amongst the top 3 ATP in the world. </li></ul></ul>EGYPT'S ICT STRATEGY 2007-2010
  35. 38. Innovation <ul><li>Establishment of Technology Development Fund (VC – model) at the Smart Village (USD 50 million) </li></ul><ul><li>Establishment of Incubators programs to foster innovation and competitiveness </li></ul>
  36. 39. Nile University <ul><li>Academic Programs </li></ul><ul><ul><li>ICT: Software Engineering, Wireless Technology, Cyber Security </li></ul></ul><ul><ul><li>EMBA: Advanced Executive Training, EMBA Case Studies & Case Study Development </li></ul></ul><ul><ul><li>ENERGY: Alternative Energy & Sustainability, Economies & Management of Energy Future </li></ul></ul><ul><ul><li>MOT: Education & Research on Competitiveness Faculty Sabbaticals & Exchange </li></ul></ul><ul><li>Joint R&D </li></ul><ul><ul><li>ICT-Enabled Intelligent Transport Systems </li></ul></ul><ul><ul><li>Alternative & Renewable Energy </li></ul></ul><ul><ul><li>Wireless Technology & IP Multimedia Systems </li></ul></ul>EGYPT'S ICT STRATEGY 2007-2010
  37. 40. Smart Village Incubators
  38. 41. Thank You [email_address] Eng. Amr Mostafa EGYPT'S ICT STRATEGY 2007-2010