Egypt named top outsourcing destination as industry expands

Egypt named top outsourcing destination as industry expands


3 July 2010
CAIRO: Egypt can now brag that it is the most attractive destination for companies looking to outsource their operations abroad.

Last week in Brussels, Egypt was named "Offshoring Destination of the Year" by the European Outsourcing Association (EOA), beating rivals like the Philippines, Colombia and Sri Lanka as well as regional competitors such as Morocco and Jordan.

Criteria for the award included cost competitiveness and a strong talent pool, specifically relating to language skills.

"The country's credibility is [growing] amongst European companies and has put its mark on the map of favored global services locations," Tarek Kamel, minister of Communications and Information Technology, said in a statement to Daily News Egypt.

Globally, the outsourcing industry is worth around $30 billion, said Ahmed Reda, media communications manager at Egypt's Information Technology Industry Development Agency (ITIDA). Egypt's piece of the pie is $1.1 billion a year, and with a goal of doubling that by 2013.

The industry could generate $10 billion a year for Egypt by 2020, an official told Reuters.

"We recognize the increasing role that Egypt can play in the fast-paced global ICT industry and we are advancing steadily on the way to position the country as a hub for IT innovation and entrepreneurship," Kamel continued.

Medhat Khalil, chairman and CEO of Raya Holding, whose company offers outsourcing solutions to other firms and now employs 2,500 locally, told Daily News Egypt, "This is another milestone for Egypt's flourishing contact center industry."

He continued, "For several years, Egypt has been advancing in the top outsourcing destination rankings, and the country is expected to lead the global outsourcing market and attract big offshore accounts."

In 2009, global management and research consulting firm A.T. Kearney ranked Egypt as the sixth most attractive offshore destination after India, China, Malaysia, Thailand and Indonesia. Egypt came in 13th place in 2008.