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Egypt - Outsourcing Destination


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Egypt - Outsourcing Destination

  1. 1. Advertorial Interview of Country Representative We need to have continued investment to enhance the value of the talent poolWhen and how did the outsourcing center, cable TV and video conferencingindustry evolve in Egypt? systems, state-of-the-art power network, and uninterrupted power supply andIn Egypt, the national Information and standby generators.Communication Technology (ICT) industry isemerging as a role model of deregulation and Additional Smart Villages are being plannedprivatization as well as a catalyst for reforms for Alexandria and Damietta, while thein other sectors. The overall ICT industry has Maadi Contact Center Park in Cairo will bemanaged to maintain a growth rate of 20 up and running in 2012 for 30,000 peoplepercent CAGR in 2008, and has attracted local working in business process outsourcing.and foreign investments of more than US$8 The first three buildings in the park werebillion over the past three years. inaugurated in May 2009. Smart Village and the Maadi Contact Center Park willThe Egyptian ICT sector has managed such a ultimately be home for over 110,000growth rate mainly due to the quality of its professionals. Egypt has an electrificationinfrastructure and a strategy that provides an rate of 98 percent and is a net exporter ofenvironment conducive to business. Through electricity providing a secure, continuousthe public-private partnership mode, the supply of electricity to the industry.Ministry of Communications and InformationTechnology (MCIT) and Information In the past few years, the telecom sector hasTechnology Industry Development Agency been substantially liberalized. There are(ITIDA) launched a strategy in 2006 outlining three mobile phone operators (Mobinil, Dr. Hazem Y. Abdelazimhow the country should utilize its competitive Vodafone Egypt and Etisalat) all of whichadvantages to become a destination of have licenses to provide 3G services. Egypt’s CEO, Information Technology Industrychoice for BPO/ITO. The strategy consists of telecommunications infrastructure is very Development Agency (ITIDA)programs designed to enhance the capacities well-developed, and the international long-of local companies, scale up a talent pool distance rates have been lowered in anequipped with needed skill sets, and attract effort to promote the contact center protocol in late 2007 to prepare a largeforeign direct investments. industry. segment of Egyptian graduates for BPO/ITO through the EduEgypt The government is investing in the building employability skills program. The university of roads, and improving the transport intervention program is aiming atWhat infrastructure improvements have infrastructure in Cairo. A third Cairo metro supplying the market with 10,000the government made to meet the line is under construction. professionals annually by 2012. Now in itsdemands of this growing industry? third phase, EduEgypt is being applied in The government is also planning to have 19 faculties inside nine universities acrossEgypt has invested in developing world-class US$ 2.75 billion of public-private funds to the country. The program graduatedinfrastructure facilities, including real estate, be injected into the economy for the around 3000 students so far. Anothertelecommunications and Internet development of key infrastructure. finishing schools program is underway toconnectivity. The Smart Village on the produce an additional 20,000 professionalsoutskirts of Cairo provides a state-of-the-art annually by 2012. The ITIDA is activelyhome for over 20,000 people working in the What measures is the government taking involved in the program design as it isIT industry and has the capacity for a further to ensure the quality of the talent pool in tasked with developing the IT/ITES industry60,000. The main ICT infrastructure of the the country? with the aim of increasing exports.Smart Village consists of high-speed networkfor data, voice and video transmission, Virtual The MCIT and the Ministry of Higher The program is designed and implementedPrivate Network (VPN) connection, Voice over Education and Scientific Research signed a by a number of renowned global partners.Internet Protocol (VOIP) capabilities and data Global Services /
  2. 2. Advertorial Interview of Country Representative EduEgypt aims at providing the talent pool the country, supported by leading ICT with the skills required for BPO/ITO and companies such as Cisco, HP, IBM, Microsoft uses a skills matrix approved by the BPO and Intel. The Egyptian Information, industry and endorsed by our global Telecommunications, Electronics and partners to instill the required set of skills Software Alliance (EITESAL), which focuses for BPO/ITO. The program includes Train the on bridging the gap between academia Trainer and Train the Master Trainer and the ICT industry, helps young talent components to help build the national develop practical and industrial skills training industry capacity. within educational programs. ITIDA has also recently launched a program to We are also launching an advanced promote industry and university management and professional training collaboration, linking academic research program in 2010 to provide industry with industry and market needs. The above relevant training to the IT-BPO sector. The as well as the EduEgypt program depend program will be introduced as a proactive heavily on the participation of the industry measure to inject middle management into to ensure equipping fresh graduates with the market. This will help avoid the lack of the right skill sets. middle management experienced by other outsourcing destinations. As of Q4 2009, we started a European What measures need to be taken to language program, to enhance the multi- sustain the current competitive edge in lingual skills of the entry-level talent base. the global market? The program started for French and German languages and will include Spanish In order to anticipate and adapt to and Italian in the coming stage. Its design changed industry realities, government resembles that of EduEgypt but tackles bodies constantly revisit their talent and languages specifically and it is infrastructure initiatives as well as implemented in cooperation with leading government support to potential investors. global cultural and language centers. A major focus in the future will be the The Information Technology Institute (ITI) is implementation of more comprehensive also offering several training programs talent programs as well as making tier II which include a nine-month diploma cities more conducive for investment. offered by the Combined Software Application Program, Knowledge Transfer Partnership Program, and more than 20 customized IT training programs. Several programs are currently under preparation that will enhance the technical capabilities of the students in a broad range of IT service lines (from package implementation to remote infrastructure management). These will increase the suitability of the talent pool in IT-specific areas.While the Information Technology Institute,First Source, IBM Daksh, Infosys BPO areresponsible for the training, Hewitt andEduquity are carrying out the testing process. Are there any industry initiatives toEduEgypt also listens to industry needs foster the development of this talentthrough a unified industry calibrated pool?assessment and testing modules to ensure There has been an Egyptian Educationquality. Initiative set up to improve ICT education in Global Services /
  3. 3. Egypt is fast moving beyond traditional Advertorial The Egypt Factfileoutdated stereotypes to emerge as oneof the most developed economies ofthe Middle East and North Africa.Located at the crossroads of Europe, the Middle East and Africa, Egypt hascontinued to gain recognition in the outsourcing industry in the past year.There are numerous reasons behind the success story of Egypt as a preferred outsourcingdestination. The core reason behind the rapid development of Egypt is a talent base of skilledmulti-lingual graduates. Many graduates are fluent in French, German, Italian and Spanish as wellas English. Largely as a result of its strong talent base and strong government backing Egypt hasemerged as the sixth most attractive offshore destination according to the 2009 AT Kearney GlobalServices Location Index. A large talent pool of nearly 330,000 graduates, many of them in the areasof commerce, science and engineering, provide support to the growing Business ProcessOutsourcing (BPO) industry in the country. The well-concerted efforts by the Egyptian governmentto maintain this steady supply of well-trained graduates have gone a long way in attractingforeign investment from leading international organizations.Egypt boasts world-class infrastructure in terms of real estate, telecom and Internet connectivity.The ‘Smart Village’ concept of a technology park with state-of-the-art infrastructure has caught onwell with call centers and exported IT services. Strong government backing of the InformationTechnology Industry Development Agency (ITIDA) and the General Authority for Investment(GAFI) has helped to develop the BPO industry in the country.The strategic location of Egypt is an added advantage, as it allows easy access and connectivity toseveral international submarine cables. All these factors, coupled with the cost-effectiveness ofservices in the country, go to providing a safe, modern business environment to the a glanceCurrency: Egyptian pound (EGP) Countries that outsource business to Egypt: Europe, Middle East, North Africa, Australia, New Zealand,Main industries: Textiles, food processing, tourism, India, North Americachemicals, cement, metals, construction, BPO Key verticals: Banking, healthcare, business solutions,Literacy rate: 57.7% telecommunicationsLanguages spoken: Arabic (official), English, French, Some big players: Oracle, IBM, Cisco, Vodafone, HSBC, Google,Italian and Spanish Xceed, Microsoft, Wipro, Allied Soft, Stream Global Services, Teleperformance, Valeo, SQS, Raya, Etisal, Orange, EMC,International airport: Cairo, Luxor, Ophira, El Arish, Hurghada MahindraSatyam, HP-EDSGDP growth (World Bank): 7.1% (2008 figures) Key competitive advantages: Infrastructure and connectivity, multi-lingual talent pool, cost-competitiveness, strategic geographic location and supportive environmentIT-BPO sector growth Main cities: Cairo with its Smart Village and Maadi Park (under construction)Total number of employees: Over 15,000 directly employedin IT-BPO & over 45,000 indirectly supported by the industry Emerging locations: Alexandria, El Mansoura, Assuit Global Services /
  4. 4. Advertorial Opportunities and Future Potentials looking aheadThe efforts taken to promote the outsourcing industry in the country have proved successful. A recent report bythe Commonwealth Business Council ranks Egypt as the number one outsourcing destination in Africa and thegrowth of the industry has in turn contributed to the socio-economic development of the country as a whole.Social and political stability in Egypt are among the main factors attracting international investment in Egypt anda high growth rate is expected in the coming years.In recent years, the Egyptian government has being positive, especially that it takes into The overall perception in Egypt towards aaccelerated the pace of reforms in the account global changes. Other industry career in IT is extremely positive and iscountry with emphasis laid on the IT-BPO support sectors, such as telecommunications, reflected by the choices many youngsector. Key initiatives have been launched in education and training, banking and Egyptians make when choosing a course atthe form of tax reforms, customs reforms, transportation, have also developed with the university. Of the 330,000 students thatfinancial sector reforms and intellectual growth in the IT-BPO sector. graduate in the country every year, aroundproperty protection reforms to aid the 100,000 study subjects directly applicable IT-BPO operations in the country have so fargrowth and development of the industry. to the IT industry. The future of the industry focused around the Smart Village in Cairo. TheEnormous strides have been made in in the country looks promising with government is now developing Smart City IIintellectual property protection and the continued investments and infrastructure, or Maadi Park as it is also known in Cairo, topiracy rate in Egypt has dropped to about 60 government support and international meet the demands of the growing industry.percent, which is one percent less than the quality resources. The park is expected to be fully operationalinternational rate. This proves the countrys by 2012. The Egyptian telecommunicationskeenness to attract multinational companies infrastructure is also engineered to provideand its concern to protect intellectual substantial services and to absorb the rapidlyproperty rights. Egypt is targeting a US$1 growing ICT industry. With its currentbillion outsourcing industry exports by 2010. infrastructure, and the large number of Dr. Hazem Y. Abdelazim international and regional fiber optic cables CEO, Information TechnologyBy the end of 2009, over 15,000 jobs are Industry Development Agency (ITIDA)directly based on the IT-BPO sector and over that pass through Egypt, the country has45,000 jobs are indirectly supported by the international and national links and reliableindustry. The Commonwealth Business connectivity to the rest of the world. In thisCouncil report further described the Egyptian way, Egypt has excellent components for anGovernment strategy of raising ICT exports as emerging call center hub. Global Services /
  5. 5. What our patrons say Advertorial Client TestimonialsIBM EgyptIBMs choice to establish a center in Egypt recognizes Egypt’s high-value services delivery, geographical location and the availability of askilled talent pool. These are key factors contribute to Egypt’s successful experience in this industry. We are pleased to partner with theEgyptian government on focused projects that confirm Egypt’s competitiveness.Eng. Amr GhoneimGeneral Manager, IBM EgyptCiscoIn considering locations, Cisco specifically chose Egypt because it has many unique advantages for a contact center destination. Additionally,Egypt aligns with Ciscos focus to partner with emerging countries in order to create innovative and inclusive business models enabled bytechnology.Angel MendezSenior Vice President, Customer Value Chain Management, CiscoStreamFollowing the recent opening of our 1000-seat Cairo solutions center, we are seeing tremendous opportunity to offer a highly skilled,technical workforce to support our growing global client base. We believe that Egypt is fast becoming the next ‘go-to’ location for offshoreservices for both our North American and our European global accounts. We are thrilled to be working with ITIDA to ensure that we quicklyand effectively ramp up training and support efforts in Cairo for these clients.Scott MurrayChairman and CEO, StreamVodafoneI think (Egypt’s) geographical factor is important. I really do think of Egypt as right in the middle of the action. For the whole of the Europeanoperations, it is just an easy option. And even when you have the complete opposite—like Australia and New Zealand—it is even better for usbecause we run the UK during the day and in the same seats, we run Australia and New Zealand at night, so the efficiency of the building ismassive.Both quality and quantity of available labor are very high. Purely on our product—call center services—you need to have a good education,and be bi-lingual. The education system produces intelligent, well-grounded, and ambitious people to get jobs with companies like Vodafone.Richard DalyCEO, VodafoneCBC TechnologiesIn our study, Egypt is rated as the most attractive outsourcing location in Africa for a number of reasons:Egypt has an edge because Information and Communication Technology (ICT) is supported and believed in by the leadership and all actionsare coordinated.The close coordination between different departments, especially the Information Technology Industry Development Agency (ITIDA) and theGeneral Authority for Investment and Free zones (GAFI), makes a real single window service for any industry coming into Egypt.An additional strength is the serious and coordinated efforts that the government and other stakeholders are making to maintain a steadysupply of trained human resources. Egypt is first in the people and skills score in this study.Vijay AmliwalaManaging Director, CBC Technologies Global Services /
  6. 6. An abundant technically skilled and uniquely multilingual talent pool...The sustainable low cost of doing business...A reliable and scalable infrastructure supporting your business...Substantial ongoing government investment and support...A strategic, culturally rich and welcoming location at the crossroadsof Europe, Africa, and Asia...These are the reasons why Egypt is an outstanding destination forinformation technology and business process outsourcing.To find out more, come and talk to us at the Egypt On