Egypt enjoys a unique blend of qualities making it one of the most attractive destinations for IT and business process services globally. What sets Egypt apart from other nearshore destinations in Europe, as well as on a global comparison is that possibility to implement service centers on a meaningful scale, like the Philippines and India.

Located in the center of the world, the culture compatibility, physical proximity, and similar time zone to the region facilitate productive business interactions.

From Rapid Growth to Maturity

Since the early 2000’s, the government has opened up the economy and the Egyptian service industry has gone through rapid growth, despite political turmoil of 2011 revolution, establishing itself as a reliable and much needed partner not only for European but also US, African and Middle East markets. Currently, the ICT sector in Egypt is the fastest growing sector and largest contributor to GDP. In 2016, the sector’s exports stood at USD 1.7 Billion.

In 2015, Avasant research projected that the outsourcing industry’s workforce will reach 161,250 FTEs by 2020. See Graphic 1. According to Frost & Sullivan, Egypt’s BPO market is experiencing a shift in its services portfolio as providers move from multilingual contact centre services to high-value niche services, such as product development and R&D.

In 2016, Egypt has been identified as a Primary Location for outsourcing, shared services, and captives in EMEA by Gartner.* Moreover, Everest Group, reported that the unique geographical position of Egypt together with its very attractive value proposition puts Egypt on the track to become a major hub for business operations in EMEA.

Talent Pool

Egypt has a very large and highly educated population, which provides a unique opportunity for larger operations with about 500,000 annual graduates from over 35 universities and 100 institutes.

Every year, about 220,000 students in business process services related fields and 50,000 students in IT-related fields graduate ready to deliver advanced processes and knowledge services in over 20 languages across more than 100 countries. With these numbers, Egypt is positioned among Poland and the Philippines, traditionally strong sourcing destinations. See Graphic 2.

While UK and France are the better examples here, as the graduates with English and French language knowledge are the highest in number, German graduate numbers are still significant, especially compared with other sourcing destinations in CEE and the growing demand and costs.

“In Egypt there are a large number of well-educated high school and university graduates who speak German. Cairo has a German university that graduates some 500 students each year. They are fluent in German and can often express themselves well in other European languages. This makes them ideal candidates for jobs involving SQS customers from German-speaking regions and for working closely with colleagues at the Homeshore Test Centre in Görlitz.” Axel Bartram, Former Managing Partner SQS Germany.


Read more on: cost, drivers and further development, industry resilience, innovation and government support in the article: Read the Article

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