Showing posts with label ITIDA. Show all posts
Showing posts with label ITIDA. Show all posts

Tuesday, February 21, 2017

Connecting Egyptians with tech jobs [from Business Monthly and Zawya]

By Tamer Hafez 

Starting in 2003, when Xceed Call Center launched Egypt’s call service industry in Smart Village, a sleek new business park on the outskirts of Cairo, fresh university graduates looking to kick-start a career in tech—or just find a job—manned phones in the country’s fast-growing outsourcing sector. The work ranged from taking fast-food orders to providing emergency tech support for multinational companies, with call center employees earning anywhere from a few hundred to a few thousand pounds a month—with the more skilled positions paying three times as much as new entrants to the workforce might hope to make in other sectors. Ahmed Saeed, who was among this early crop of young call center agents, saw the opportunity in this growing new sector and parlayed the experience into opening his own business. Now 39, Saeed is the owner of a service that provides training for call center employees.

With a prime location at the locus of three continents and a cheap, plentiful workforce, Egypt saw the potential of this growing industry to boost its economy and provide badly needed jobs for young people—following in the footsteps of India, the global leader in so-called outsourcing. Dozens of call centers opened in Egypt after Xceed paved the way, growing some 30 to 50 percent by 2008, and by 2011, the country was named the fourth-best destination for call centers by A.T. Kearney Global Services Location Index. However, the January 25 revolution—during which the government temporarily cut mobile and internet service—greatly spooked multinational firms that had contracts with local call centers, particularly after the months of instability that followed. According to data from the Ministry of Communications and Information Technology, the number of new job postings in the call center industry dropped from more than 5,000 in fiscal 2008/09 to half that in the years following the uprising. Egypt is now ranked the 16th best location for call centers worldwide, though it’s still number one in the Middle East and North Africa region.

In recent months, the government has stepped up its ongoing efforts to transform Egypt into a technology hub, seeking to attract not just call centers but tech-related research and development and manufacturing as well. A proposed investment law meant to overhaul Egypt’s business climate calls for “free tech zones,” to attract ICT firms by promising them tax-free status on everything from machinery to imports. The Ministry of Communications and Information Technology is also pushing a multi-pronged strategy to lure more of these firms to Egypt by creating specialized tech zones outside of the capital to house call centers, R&D firms and factories that make electronic devices and components. In November, at the Cairo ICT conference, President Abdel Fattah el-Sisi unveiled an approximately LE 100-billion fund to support new and existing tech companies. 

Not only is outsourcing a rapidly growing industry with lots of potential jobs for young people, according to the government’s rationale—call centers can be established anywhere, offering a way to create employment in remote parts of the country. In Egypt, the vast majority of the population is currently crowded into the Nile Valley. 

In December 2015, Minister of Communication and Information Technology Yasser el Kady announced that the Information Technology Industry Development Authority, with the help of consultant Ernst & Young, was assessing the economic feasibility of seven zones with gated business parks suited to tech firms. “We will not stop at smart buildings and providing innovation centers,” Kady told the media, pointing out that fully serviced and integrated zones would pave the way for an ICT sector boom in Egypt. To that end, Silicon Waha, a joint venture between ITIDA, the Information Technology Industry Development Authority, and the New Urban Communities Authority, is currently working with Wadi el Nile Developments to build a 41-feddan tech zone in Assiut and a 30-feddan zone in Borg el Arab, with a total investment of around LE 400 million. Speaking to the press last month, Kady said that eight tech companies would be up and running in the two zones by the end of 2017. 

“We are currently looking at both zones,” says Mohamed Ismail, the regional director for development at Transmission Holdings, a company that builds mobile phones. “Our criteria is logistics and the size of the plots on offer.” Ismail aims to have a prototype 4G-capable smartphone before the end of the year and be manufacturing 6 million phones, tablets and mini-laptops annually by 2020. Silicon Waha has also signed MoUs with Samsung, Huawei and ZTE to manufacture ADSL equipment, routers and modems in the new tech zones.

The ministry also has plans to establish other similar tech zones in Sadat City (50 feddans), Beni Sueif (100 feddans), New Aswan (40 feddans), 10 Ramadan City (85 feddans) and Ismailia (100 feddans) at an estimated price tag of LE 24 billion. Mohamed Abdel Wahab, an aide to the Minister of CIT for tech zones, was quoted last month as saying the government would charge $9 to $10 per square meter. “This is a competitive rate,” he said. Each zone will eventually have a board of directors that oversees operators and enforces regulations.

As an added incentive for developers and tech companies to set up shop here, Minister of Investment Dalia Khorshid said that the draft investment law currently before Parliament has proposed that such companies manufacturing goods for export and servicing foreign clients remain exempt from tariffs. “Our aim is to increase the amount of investments in the tech industry to $3 billion and provide an additional half a million more jobs by the end of 2020,” Khorshid said in January, following the Cabinet’s approval of the most recent version of the law. 

ITIDA is managing the fund the president unveiled in November. It includes LE 50 million in subsidies specifically earmarked for new tech-hardware manufacturers that make devices such as mobile phones and tablets or components like circuit boards or chips. Companies with capital of at least LE 10 million can apply for up to 30 percent of their capital expenditures on equipment to be paid for by the government, provided that 40 percent of their purchasing budgets are earmarked for locally made machines and components. The fund will cover an additional 10 percent of equipment expenditures if a company exports at least 25 percent of its goods. The fund also offers support for existing tech firms that use local inputs—and even more for those that export at least a percentage of their final goods. It also aims to support employee training, offering even more for enterprises whose work forces are at least one-quarter female.  

Even though these funds have not officially launched, new investors are already factoring them into their investment decisions. “We are looking at which of these incentives would suit our business model,” says Mohamed Salem, CEO of Sico Technology, a hardware firm that’s building a LE 100-million mobile phone factory in the Assiut tech zone. Ahmed Kandil, the exclusive local dealer for Xtouch, a Chinese electronics brand that makes smartphones and other devices, has long-term plans to partner with an Egyptian factory to build various Xtouch phones and tablets. “We are still only a few months in the market, but we see great potential with these initiatives,” says Kandil. “At this stage, partnerships will work very well with us.” 

MCIT’s goal is to boost Egypt’s ICT exports to $2.5 billion by the end of fiscal 2017/18, up from $1.8 billion in fiscal 2015/16. Officials are hoping these measures will help create jobs for the millions of youth who need them. Unemployment, a chronic problem, has only gotten worse in recent years, especially among the young and educated, with 42 percent of Egyptian youth between 15 and 24 jobless, according to the International Labor Organization, compared to 12.5 percent of the general population. In the last academic year, some 500,000 tech-trained young people graduated from Egyptian universities, according to the Ministry of Higher Education. Since the rise of tech parks in the early 2000s, the government says it is also trying to integrate more ICT skills into the basic curriculum as well as offering post-graduate courses through the state-owned Information Technology Institute, the Software Engineering Competence Center and the National Telecom Institute. Meanwhile, the ICT ministry has authorized training centers to offer an International Computer Driving License in cooperation with UNESCO.

While Egyptian university students remain fixated on the traditional prestige professions of medicine and engineering, an increasing number of youth are drawn to the tech industry. Tamer Hassan is a senior at Cairo University’s Faculty of Computer Science and Engineering who would happily accept an entry-level job at a call center, even if it meant working night shifts or 12-hour workdays. Over the summer break, he interned answering phones at a call center. “I have established very good relations with my future employer,” he says. “This is why I think my first step is to work at a call center and see where it takes me.”

Another student, Hadya Yassin, is studying electronic hardware design. Recently, she’s been learning how to design circuit boards, and she hopes to parlay this into a factory job upon earning her diploma. While some might see working on an electronics assembly-line or answering phones as menial, Yassin proundly points to her elder sister, who took an outsourcing job upon her graduation from university back in 2005 and now has a good job managing one of the country’s largest call centers. “It is always better from a career perspective to work in a new industry,” declares Yassin. 

Othman Lotfy, a computer science professor at Cairo University, says that students who can speak a foreign language have an edge in landing jobs at Egypt’s call centers, which cater to callers across Europe as well as in places like Russia and Latin America. In recent years, the ICT ministry has organized job fairs at the university, big employers like IBM and Microsoft search for recruits among the soon-to-graduate.

As of 2014, the most recent year statistics are available, Egypt’s ICT sector employs 800,000 to 1 million people, according to officials. Even the Egyptian government now employs call centers, with the Ministry of Electricity outsourcing its customer service operations since 2016. Currently, call centers field calls from customers in southern Cairo, but eventually they will serve all of Cairo and Alexandria. The growing popularity of delivery services in the cities has also created call center jobs. “Those call center positions only require a basic education and good Arabic pronunciation along with the most basic computer skills,” says Lotfy.

Said Riad, head of the commercial sector at Wasla Outsourcing, a call center with offices around Cairo, agrees that the ICT sector is indeed growing again but that it will ultimately need more than just infrastructure in order to provide good, viable long-term employment for more Egyptians and deliver equitable growth. Workers need access to affordable public transit to get to work, among other things. “Youngsters are still not so desperate that they’ll be willing to work in the middle of nowhere,” says Riad.

© Business Monthly 2017

Wednesday, January 4, 2017

ITIDA offers local electronics manufacturing incentives to foreign and Egyptian investors

The Information Technology Industry Development Agency (ITIDA) organised workshops, attended by more than 80 representatives of foreign and local companies, to offer packages and incentive programmes designed by the authority in coordination with the Ministry of Communications and Information Technology. The workshops are meant to cover the industry’s needs such as circuits designing and manufacturing …

The Information Technology Industry Development Agency (ITIDA) organised workshops, attended by more than 80 representatives of foreign and local companies, to offer packages and incentive programmes designed by the authority in coordination with the Ministry of Communications and Information Technology. The workshops are meant to cover the industry’s needs such as circuits designing and manufacturing and electronic systems and products.
Hossam Osman, executive vice president of ITIDA, said that the general framework of the strategy adopted by the state in the field of electronic industries is based on stimulating foreign investments. He added that this strategy enables research development and innovation, while promoting exports by activating trade agreements, developing the capacity of human resources, and improving the regulatory environment.
This comes in light of the presidential initiative for the design and manufacture of electronics called Egypt Manufactures Electronics, which is overseen by the Ministry of Communications and Information Technology. The initiative aims to make the electronics industry one of the pillars of economic growth by doubling Egyptian electronics exports, and achieving self-sufficiency in the local market, which lowers the rate of imports. The initiative also aims to provide new job opportunities for professionals and technicians working in this field.
The initiative seeks to manufacture a number of promising electronic products including mobile phones, tablets, navigation devices, and its feeding industries such as lithium batteries, electric chargers, screens unit, speakers, LED lighting products, smart counters, televisions, and LED screens. Under the initiative solar energy systems such as solar cells, transducers, controllers, energy batteries, and industrial electronics would have local manufacturing rates ranging from 40-60%.
Stimulus programmes provided by ITIDA includes encouraging companies to increase their investments in the field of electronics such as their capital attraction programme, which includes financing a local partnership with an international company or financing a local company that manufactures one of the most promising products and its feeding components with advanced technology.
Stimulus programmes also include the capital programme for modernising feeding industries. This programme includes financing a local party to develop existing feeding industries. ITIDA also offers a programme for supporting operating expenses, which aims to increase competitiveness of some components manufactured locally such as printed circuits, micro-chips packaging, headphones, and lithium batteries.
ITIDA also has an innovative designs stabilisation programme designed to finance the research, development, and creativity of electronic components in electrical appliances, automobiles, and other projects.
Stimulus programmes also include the development programme for financing companies’ research in the field of the Internet of Things and emerging electronic companies. This programme provides financing in the field of electronic design and covers the financing costs of design patents on an international level.
ITIDA also offers a technical and specialised training programme, which focuses on basic and advanced training levels for workers in the electronics industry. The programme is meant to generate 500-800 engineering graduates a year. Furthermore, the technical training programme offered by ITIDA aims to produce 2,000 skilled technicians and workers a year. Another programme aims to train 50-100 entrepreneurs and leaders every year.

Wednesday, November 30, 2016

Egypt govt partners Mastercard to promote e-payment systems

Egypt's Information Technology Industry Development Agency (ITIDA) and MasterCard have signed an agreement to support the development of e-payment systems and cashless transactions in technology parks and smart villages in Egypt. The Minister of Communications and Information Technology Yasser ElKady said the ministry and its affiliates seek to disseminate the concept of financial inclusion based on multiple options for financial transactions, as well as enhance the efficiency of payments and encourage financial literacy among dealers.
The MoU stimulates joint efforts between the two parties. MasterCard is to provide e-payment services to create a digital payment experience for all companies dealing with smart villages and technology parks, while ITIDA is to support this initiative by encouraging smart villages and technology parks to provide full online services for their companies, thereby improving service efficiency.
To achieve this objective, a bundle of tools for e-payments services for SMEs will be available for use, such as APIs. In addition, SMEs will be encouraged to take advantage of MasterCard's expertise in this area. This is in addition to participating in ITIDA training programs, and enabling SMEs to use MasterCard payments system.

Tuesday, September 20, 2016

Egypt is a Finalist for the Outsourcing Destination of the Year 2016 Award

European Outsourcing Association, EOA, unveils its 2016 shortlist.

Abundant multilingual
 talent supply, competitive operational cost, attractive business environment, entrepreneurship and innovation, together with government support, qualified Egypt to compete for the prestigious European award.

CAIRO
Sept. 8, 2016 - Egypt has been shortlisted as the Outsourcing Destination of the Year 2016 for the European Outsourcing Association (EOA) Awards, one of the most prestigious outsourcing industry awards. The EOA is the center of excellence for outsourcing in Europe. It is committed to advancing the outsourcing profession and the outsourcing industry by driving awareness, education, standards and thought leadership. Winners will be announced next October, following the EOA Leadership Summit in Bulgaria, which gathers the global sourcing leaders and influencers.
Recent years witnessed a shift in the outsourcing landscape in Egypt from low-value to high-value services. BPO, IT and R&D outsourcing services have mushroomed over the last four years, with employees doubling to reach around 50,000 FTE. The contribution of Egypt's ICT industry to GDP grew by 13% in the last two years, reaching 4.1% of total GDP. In 2015, the Egyptian Information Technology Industry Development Agency, ITIDA, created 6,000 new jobs through expansion agreements with MNCs.
This year, ITIDA features the innovative and collaborative environment in Egypt through its investment in the newly established company, Silicon Waha, for establishing science and technology parks across second-tier cities. This countrywide initiative encompasses a collaborative ecosystem of government, ICT companies, academia and entrepreneurs and creates 500,000 jobs. By the end of 2016, two parks will be operational under the name We Parks, one within Alexandria city, covering the coastal area, and the other within Assiut city, covering Upper Egypt. We Parks complement the portfolio of the successful Smart Village and Maadi Technology Park in the capital. Moreover, ITIDA's affiliate, the Technology Innovation and Entrepreneurship Center, has launched the Innovation Clusters Initiative to develop an Innovator-friendly environment in Egyptian cities based on a Public Private Partnership.
The country has an abundant talent pool, with 500,000 annual graduates from more than 35 universities and 100 institutes, 50,000 of which are IT-related, while 220,000 are BPO-related. Its peerless multi-lingual labor is able to serve more than 20 languages across 100 countries.
Compared to other outsourcing destinations in Europe and AsiaEgypt enjoys an exceptionally low attrition rate. Against this background, the country is heavily investing in skills development and talent management. The Next Technology Leaders, NTL, is an initiative to qualify 16,000 Egyptian youths in the ICT field through online and interactive training in collaboration with MNCs, Egyptian universities, and learning institutions.
Egypt's enhanced position is reflected in recent influencers' reports, including Gartner, where Egypt was identified as a primary destination for sourcing and IT services in EMEA. Everest Group's "Putting Egypt Back on Your Location Radar" evaluated the current global services delivery landscape in Egypt. Oxford Business Group cited Egypt's outsourcing industry as going from strength to strength while Forbes ranked Egypt among top 10 countries to launch start-ups. Raconteur ranked it among top 10 emerging countries for outsourcing, and the IMF revealed Egypt as the second largest economy in Africa, ahead of South Africa.
Egypt received the EOA Offshoring Destination of the Year Award in 2010, surpassing PhilippinesColombia, and Sri Lanka. The award recognized Egypt's growing position in the global market and highlighted its competitive advantages. This year, Egypt is competing with BelarusFiji, and Sri Lanka; solid strategies, flagship projects, and positive indicators make it a strong candidate for the 2016 award.

AbdelRahman El-Mawawi
Senior Media Researcher
ITIDA
+202 3534 5210
@ITIDA

Monday, April 18, 2016

IDC Announces Opening of New Regional Research Center in Egypt

Egypt's ICT Minister witnessed the signing of the agreement between IDC and ITIDA during Cairo's CIO Summit International Data Corporation (IDC) today announced the opening of its dedicated new office in Cairo's Smart Village. The global technology research and consulting services firm says a number of analysts and consultants are already on board and that recruitment efforts are continuing after today's formal inauguration at the IDC Egypt CIO Summit 2016, which took place at The Nile Ritz-Carlton Hotel under the patronage of H.E. Yasser El Kady, Minister of Communications and Information Technology.

The new office was officially launched by members of IDC's senior management in the presence of representatives from Egypt's Ministry of Communications & Information Technology (MCIT) and IT Industry Development Agency (ITIDA).

According to IDC's latest forecasts, the Egyptian ICT market is expected to total around$8.95 billion in 2016 and grow to $10.32 billion in 2019. Much of this growth will be driven by spending on IT services and packaged software, which are expected to experience compound annual growth rates (CAGRs) of around 9% through to 2019. And as the country emerges from its previous period of transition, the economy is expected to demonstrate solid economic growth under the new government, spurred by significant reforms and external investment.


"I'm delighted to witness the launch of IDC new research office in Egypt, thus supporting expansion and job creation for highly-skilled research professionals," says Yasser El Kady,Egypt's ICT minister. "The MoU comes as part of Egypt's endeavors to attract foreign direct investment and is clear confirmation that the country has evolved into a high-end service delivery favored destination for EuropeMiddle East and Africa,"


"Capitalizing on the increasing level of investors' confidence in the ICT sector, Egypt is currently implementing a developmental strategy to establish technology parks across the country that serves as a catalyst for Egypt to become a leading, globally-recognized hub for electronic design and ICT innovation," the minister added.


Together, ITIDA and IDC have successfully developed and executed programs that encourage cooperation between Egyptian IT players and the systems integrators and solution providers they need access to in order to thrive in these target markets. Bundled with unstinting access to IDC's expert analysts and research capabilities, the partnership is enabling ITIDA's mission to promote trade in international markets and become a strategic advisor to local, regional, and global companies.


"Egypt is a natural fit with IDC's strategy to invest and grow its presence across the Middle East and Africa," says Jyoti Lalchandani, IDC's vice president and managing director for the Middle EastAfrica, and Turkey. "IDC has been researching the Egyptian ICT market since the mid-1990s and our research coverage today encompasses the entire spectrum of the industry, including hardware infrastructure, packaged software, IT services, telecommunications, vertical markets, and our recently launched IT Executive Programs, which have been designed with the specific needs of CIOs and IT leaders in mind. In light of this expanded coverage, it made perfect sense for us to open our new office here alongside the second annual IDC Egypt CIO Summit, and I look forward to making a further announcement about our new Country Manager in the coming weeks."


The new office is not IDC's first foray into the Egyptian market. Indeed, over the past few years, IDC has been supporting ITIDA to promote Egyptian IT and ITES companies in export markets across the GCC and Africa.

SOURCE IDC International Data Corporation

Sunday, January 17, 2016

ITIDA launches electronic portal to support outsourcing industry in April

We aim to promote Egypt as a regional axis of call centres, says EITESAL head

Source:
Daily News Egypt   |    By: Mohamed Alaa El-Din  

Information Technology Industry Development Agency (ITIDA) will launch a new initiative in cooperation with the Egyptian Information, Telecommunications, Electronics, and Software Alliance (EITESAL) to help the companies, and workers in the sector of call centres and the outsourcing industry, Vice President of ITIDA Ehab Mostafa said.

The initiative seeks to achieve this through training the companies and their workers, and granting them certificates of compliance with COPC standards.

Egyptian IT exports in the form of services such as outsourcing, call centres, and products such as software amounted to about USD 1.5 billion by the end of 2015.

Mostafa expected Egypt to register growth rates ranging between 10% and 12% in the upcoming few years in the field of outsourcing and exporting IT services. ITIDA, in cooperation with civil society organisations, plans to provide aid to companies for exports, in addition to promoting Egyptian companies in Gulf countries, Africa, some European countries, the US, and the Asian markets, especially as there are promising opportunities there.

Head of the Call Centres Division at EITESAL, Sameh Montaser said there are ~50,000 employees in this industry. Egypt has several advantages in comparison with its competitors, most prominently the availability of trained and qualified human resources, the required infrastructure, language proficiency, and the special geographic location in the middle of the world’s continents. This is in addition the fact that more than 17 marine cables passing through it.

Montaser said the Egyptian Outsourcing Gate will be launched in cooperation with ITIDA in April 2016. The gate aims to promote Egypt’s capabilities and competitive advantages abroad. It will provide data about the available sources in the call centres sector by promoting Egypt’s vision abroad as the regional axis of outsourcing. That is in addition to working on developing the suggested ideas in the field of communications.

Wednesday, January 13, 2016

ITIDA Launches Sixth Edition of Export-IT to Support ICT Company Exports


In the framework of its strategy to increase exports of ICT products and services of Egyptian companies, the Information Technology Industry Development Agency (ITIDA) has announced the launch of Export-IT Rebate program for the sixth consecutive year, with a budget of 40 million Egyptian pounds. 


ITIDA has set January 21 for the program registration deadline. By virtue of the program, ICT Egyptian companies can receive direct cash rebate amounting to maximum of 10-20% of their value added exports. The rebate value is calculated according to the exports from which the company obtained its cash value during 2014. The rebate maximum value is four million Egyptian pounds for each company, pursuant to the terms and conditions of this year’s program. 


The program doesn’t only aim to monitor and analyze financial data on revenues generated from companies exporting ICT products and services, but also aims to consolidate an important economic principle at the state’s level: the need to shift from the informal economy to the formal economy, as reflected in the Gross National Product (GNP).


Exports’ data and indicators of the companies participating in the program, and the analysis conducted by ITIDA are the basis for many of the strategies and programs offered to Egyptian ICT companies. The program is the only one in Egypt that supports exports of Egyptian companies in this sector and is also an essential reference in the process of preparing and developing ITIDA programs, designed to develop the Egyptian companies and increase their competitiveness in the global market. 


Products and services supported by the program are diverse, including the development of ICT software and services such as exports of companies specialized in the field of electronics and application development services. This is in addition to IT-Enabled Services such as call center services, IT consulting and training services, as well as embedded software. 


Export-IT Rebate program was launched in 2010, through which more than 121 ICT companies managed to get the program’s rebate of approximately 150 million Egyptian pounds over the past five years. Total exports value of Egyptian companies, joining the program, amounted to about three billion Egyptian pounds.


To know more about Export IT, please visit http://www.itida.gov.eg/En/OurPrograms/IndustrySupport/ExportIT2013/Pages/default.aspx


Monday, December 21, 2015

ITIDA Embraces Innovative IT Solutions and Applications Projected to Impact the Future of Egypt at Cairo ICT 2015

Under “Egypt On Future” Pavilion:

36 Egyptian companies to showcase cutting-edge technologies designed to develop key different areas including education, health, smart cities, and government services


Cairo, Egypt, 13 December 2015: Information Technology Industry Development Agency announced its participation at Cairo ICT 2015 held from 13-16 December at the Cairo International Conference Center under the patronage of H. E. President Abdel-Fattah El-Sisi.

A total of 36 Egyptian IT companies are taking part in the said event with the support from ITIDA under a 1400 square meter Pavilion located at hall 4 with the theme of “Egypt On future”.

The companies are crowding to showcase their latest technologies and IT applications with the aim of approaching a better future for Egypt through applying innovative tech solutions across different sectors including government services, education, mobile applications, health, Social responsibility and services, telecom, innovation and smart cities.

The theme of the participation this year reflects how technology would impact the future of Egypt and how it would help in achieving the main focus of the ICT strategy of transforming the country into a digital society and the establishment of Egypt as a global digital hub.

The pavilion also embraces displays for some associated government entities and projects including the Center for Documentation of Cultural & Natural Heritage (CULTNAT), the Information Technology Institute (ITI), and Maadi Tech Park.

The visitors of “Egypt On Future” pavilion will get the opportunity to get introduced to lots of creative solutions offered by the exhibitors that tackle different sectors needs like Raye7’s mobile application for traffic and Vertika’s software for education. In addition, Qabess company comes in the area of smart cities and green technologies with its solutions for generating electricity from the solar energy while Conativelabs which is prominent in the fields of agriculture and fisheries technologies.


This is in addition to some popular startup companies such as bey2ollak, Crowd Analyser, and TripTab; all of which are beneficiary companies from the programs and services provided by ITIDA’s Technology Innovation and Entrepreneurship center which is better known as TIEC.

The exhibition is an exclusive platform and networking opportunity for ITIDA where it brings the local IT companies to display among the industry well-established and big players, and engages them with a mix of influential leaders, vendors, operators, and decision makers.

Throughout the last few years, ITIDA has played an essential role in the Egyptian IT sector development through identifying the needs of the IT local industry and addressing them with well-designed programs, policy advice, promoting trade in local and international markets, and being a strategic advisor to local and international companies.

Wednesday, June 3, 2015

Egyptian IT sector bounces back with 6,000 job opportunities created by foreign investment

  • Stable government lures new investments from multi-nationals generating up to 6,000 new jobs in offshore outsourcing activities.
  • IBM, Procter & Gamble, HSBC, Nestlé, Axxcelera, Mobinil Contact Services, Teleperformance and EMC² sign agreements with the Information Technology Industry Development Agency at the first Technology Sourcing Investor Forum. 
  • Everest Group report shows Egyptian offshore global services industry is once again growing at an average rate of 7.5 percent annually. 
  • Avasant report focuses on Egypt an IT-BPM-KPO destination and its evolution to address the high-value IT and KPO markets. 
  • The industry continued to deliver services with minimum disruption during political turmoil of 2011-2013.

    The Egyptian information technology sector is bouncing back with the creation of 6,000 job opportunities by foreign investors.

    IBM, Procter & Gamble and HSBC were among eight multi-nationals who signed agreements to extend their partnerships with the Information Technology Industry Development Agency (ITIDA) at the first Technology Sourcing Investor Forum.

    The inaugural event hosted today (Tuesday 5th May, 2015) in Cairo by H.E. Eng. Khaled Negm, Minister of ICT, coincided with the publication of a new report from Everest Group which showed that the Egyptian offshore global services industry is once again growing at 7.5 percent annually.

    The study says that the establishment of a stable government under President Sisi and the experience of existing multi-national investors in receiving smooth and uninterrupted service delivery despite the political turmoil from 2011-2013, has helped Egypt return to the location decision radar of global players.

    Eng. Hussein El-Gueretly, chief executive officer, ITIDA, said: “The Everest Group report reaffirms Egypt’s strong fundamental competitive strengths and capabilities on a global scale in the business process management, information technology and knowledge process outsourcing businesses, and this has been recognised by major multi-nationals who are backing Egypt as a destination of choice.”

    The Technology Sourcing Investor Forum was attended by Egypt’s elite ICT investment community, and featured speakers from Everest Group, Avasant, the Los Angeles based management consultancy, the National Outsourcing Association (NOA) and other global analysts and IT leaders.

    A white paper published by Avasant, a leading management consulting firm, highlighted the revolutionary changes in the IT-BPM-KPO sector. The paper also discussed Egypt’s strengths as a preferred sourcing destination and the developments underway to further enhance the ecosystem. Also the paper emphasized on Egypt’s position to harness opportunities being created by the new digital revolution.

    In addition to IBM, Procter & Gamble, HSBC, agreements were also signed between ITIDA and Nestlé, Axxcelera, Mobinil Contact Services, Teleperformance and EMC². Up to 6,000 will be created over the term of the agreements to serve the companies’ global clients in Europe, the Middle East, Africa, Americas, and Asia via multiple languages that include English, German, French, Italian, Arabic, and Spanish, among others.

    Egypt is already home to major multi-national corporations including Intel, Valeo, Microsoft, Vodafone, Convergys, Sykes, Cisco, HP, Orange, Dell, Mentor Graphics, and many more exporting their services to 160 countries.


    Media Contact details:
    For any inquiries, please contact:


    Mostafa GabrT: +202 35 34 5174
     E: mgabr@itida.gov.eg

Egypt Revitalises Aim to Contend as Top Outsourcing Destination


Wednesday, June 03, 2015 - After losing its viability as a location for outsourcing back in 2010, Egypt looks set to become a serious destination contender for nearshore service delivery of ITO and BPO five years down the line.


Between 2006 and 2010, Egypt’s IT International Development Agency (ITIDA) ran a successful “Egypt On” campaign for outsourcing that was making good traction. Now, with a graduate pool of 500,000 and 49 per cent of the population working in the services sector, Egypt could be in a prime position to take new business from nearshore companies overseas.

Kerry Hallard, CEO of the National Outsourcing Association, recently visited Cairo to attend an ITIDA investor briefing conference. She commented: “I can unequivocally say Egypt is looking in good shape. Costs remain significantly lower than most nearshore destinations, such as Poland, scalability is good, the graduate talent pool is high, and the domestic and regional markets are growing. Infrastructure is robust, connectivity strong and the willingness of the people infectious.

You can read Kerry Hallard’s full article “Offshore Outsourcing: Egypt is back On” on the NOA website blog.

Egyptian Tech Firms Expand Footprint in Africa with Expected Business Deals Worth USD 7 Million


The Government’s Africa Together Initiative Strengthens Egypt’s Position as a Regional Sourcing and ICT Services Hub

CAIRO, Egypt, May 27, 2015 — As a part of the country’s efforts to increase IT exports and achieve ambitious economic goals, Egypt’s Information Technology Industry Development Agency (ITIDA) helped setting out a number of partnership protocols and concluding business agreements between Egyptian companies and 17 leading African telecom companies, financial institutions and ICT enterprises, in 6 different African countries, in the framework of “Africa Together” program, Round II.

Africa Together by ITIDA
Africa Together


The program reflects the government commitment to accelerate economic growth by expanding the export footprint of its domestic enterprises and help them penetrate different regions in this fast growing continent. The Egyptian companies began to reap the fruits of the program, custom-tailored to increase their exports, by a number of deals totaling an estimated USD 7 million.



Africa Together Gala Dinner & Deal Closure Ceremony
Africa Together Gala Dinner & Deal Closure Ceremony
Over a three-day visit paid by the African delegation, a number of prescheduled one-to-one meetings were held, and site visits to the premises of Egyptian companies were made. On the last day, the visit was finished off with a gala dinner held under the auspices of H.E. Khaled Negm, the Egyptian Minister of ICT, during which ITIDA presented a movie that recapped the program, highlighted the planned initiatives for developing the local IT industry, and featured two keynote speeches by ITIDA’s CEO, Eng. Hussein El-Gueretly and Jyoti Lalchandani, IDC’s group vice president and regional managing director for the Middle East, Turkey, and Africa.
As many IT Egyptian enterprises with high potential for exports seek to broaden their market exposure, ITIDA in cooperation with IDC implemented a research led Go-To-Market initiative to build up knowledge of African markets and how to approach them effectively.  This included providing Egyptian companies with market analysis of 9 African markets, demand analysis of 160+ African enterprises followed by a matchmaking trip in Kenya where Egyptian companies conducted 800+ one to one business meetings with over 130 African enterprises and customers over 3 days.
The agency leaves no stone unturned in exploring the ICT African markets in terms of prospects and challengesITIDA’s CEO, Eng. Hussein El-Gueretly said. “In pursuit of growth, Egyptian companies made unremitting efforts in studying these opportunities and bringing about real business benefits” he added.




ITIDA and IDC cooperate to bring Africa Together
Africa Together; countries involved


Among the signed agreements, Raya Corporation, the Middle East’s largest CIT company based in Cairo, signed business agreements in the field of systems integration with IE Networks as well as Tahses ICT and Consultancy from Ethiopia and the Nigerian Mayakorp.
In the area of field force automation & unified emergency response platform, Softec International partnered with IPMC from Ghana. Also, Smartec inked a contract with the Ghanaian Batiletch in network optimization and home automation while contracted with the Kenyan Sarova Group of Hotels. IT Blocks, the Egyptian software company, agreed with Afcor from Ethiopia and Dhanush Infotech from Kenya on IBM software deployment. BI Technologies signed agreements with Exceed IT Systems from Ethiopia and IPMC from Ghana. Softlock signed with the Nigerian Mayakorp and SystemTrust as well as the Ethiopian Exceed IT Systems.
Additionally, the Nigerian Airspace Management Agency and Dhanush Infotech from Kenya partnered with Zas Soft in the area of ERP.  Bsystems Ltd from Ghana signed with Infasme while EME International signed agreements to provide enterprise mobile solutions to the Nigerian Netplus and Ouranos Technology Limited as well as the Ghanaian Bsystems. Sumerge will provide enterprise solutions to Mayakorp from Nigeria and the Ethiopian Websprix. Link Development will provide banking, public sector and telecom solutions to Masterpiece Fusion from Kenya.
Hitekenofal, a leading provider of integrated communication network solutions since 1987 in Egypt, agreed to provide communications networking services to Batitech from Ghana, the Ethiopian Websprix and Exceed IT Systems as well as Even Data and Hamms Engineering from Zambia. Soft Trend signed with Mayakorp from Nigeria to provide security solutions.
Africa Together, one of ITIDA’s programs, was launched in last August to support Egyptian companies’ exports of IT services and products targeting the African markets. The premier global market intelligence firm, International Data Corporation (IDC) worked hand-in-hand with ITIDA, the executive IT arm of the Egyptian Ministry of Communications and Information Technology, to give a leg up to Egyptian ICT companies in penetrating high-growth markets across Africa – especially in Uganda, Ethiopia, Kenya, Tanzania and Nigeria – through joint partnership and market development efforts.

About Khaled Negm

Khaled Negm is the former Minister of Communications and Information Technology. He was in office from the 5th of March, 2015 till the 19th of September, 2015. He is 
succeeded by Eng. Yasser ElKady and preceded by Mr. Atef Helmy. Negm has more than 30 years of experience in the ICT sector, and he is specialized in the design of information infrastructure and applications in Egypt, the Middle East and Africa.

For any inquiries, please contact:T: +202 35 34 5210E: arahman[at]itida.gov.eg
Presentation: http://www.apo-mail.org/150527.pptx 

Monday, May 5, 2014

Egypt builds upon its outsourcing growth | ICT | Egypt | Oxford Business Group

Economic News Update from Oxford Business Group, OBG
Over the past 15 years, Egypt has built a growing reputation as a centre for export-oriented ICT services, particularly business and knowledge process outsourcing (BPO and KPO), with revenues that exceeded $1.1bn in 2011, according to a Ministry of Communications and Information Technology (MCIT) presentation last year.

As with many other service sectors, the BPO and KPO industries were affected by the fallout from the 2011 revolution. Research by the London School of Economics (LSE), Offshoring Unit in early 2013 found that among prominent outsourcing destinations, Egypt’s risk profile was one of the most elevated in the areas of regulatory risks, macroeconomic risks and political risks. A 2013 report on the “Top 100 Outsourcing Destinations” by US-headquartered advisory firm Tholons cited the fallout from the Arab Spring as the main reason for Cairo’s drop from 49 to 58. Alexandria fell four spots to rank 77 in the same analysis.

However, Egypt’s competitive advantages as a global centre for ICT-intensive industries, including BPO and KPO, are manifold. “In spite of the instability, the quality and competitive costs of Egypt’s
outsourcing services have not been impacted
,” Giorgio Modesti, CEO of Teleperformance Egypt, said in an interview with OBG.



The local cost advantage is an important factor: labour, land and power are all affordable by international standards. But while workers’ wages are relatively low, the skills base is strong. As well as native Arabic, English is widespread.  

Competitive skills and cost


Employment estimates vary but the number of people employed in the sector is about 43,000 positions in total. Egypt’s Information Technology Industry Development Agency (ITIDA), part of the MCIT, estimates that each year around 273,000 students graduate from Egyptian universities with degrees in fields suited to outsourcing, including technology and commerce, while 31,000 students are fluent in a Western European language on graduation.



As with many outsourcing destinations, such as The Philippines and MoroccoEgypt grapples with finding qualified labour for middle management roles, but MCIT, in collaboration with the Ministry of Higher Education, has also been in the process of implementing a multi-phase curriculum development and training programme, known as EDUEgypt, at university level to help ensure graduates are able to meet the job requirements of the BPO sector. The programme has been rolled out in 16 universities around the country, with more than 6000 trainees in specialised BPO-related technology-tracks.



Price competitiveness remains an ever-important factor. According to ITIDA, costs for voice-based BPO services in Egypt are comparable to those in India and the Philippines, two global leaders in the sector that have successfully capitalised on low-cost bases. In 2010, the organisation estimated that fully loaded operating costs for call centres stood at $15,830 per employee, compared to $16,360 in the Philippines and $15,010 in India. Of this, personnel costs averaged $9430, with the balance of $6400 accounted for by technology, telecoms, rent and maintenance.



With its vast dedicated technology and low costs, Egypt is accessible and attractive for global ICT companies, compared with other emerging outsourcing locations,” Maged Taher, CEO of Xceed, told OBG.



Egypt has even taking to exporting some of its BPO expertise to other burgeoning markets, such as Uganda, where the MCIT signed an MOU last year with the Ugandan Ministry of ICT to provide support and guidance for their BPO industry. In spring of 2013, Egypt sent a team of trainers to Uganda to provide technical assistance, and the MOU outlines plans for the further training of 3000 Ugandans employed in the BPO sector in Egypt.  




EU market rebounding


European language skills could become an increasingly important tool this year and beyond. Opportunities for Egyptian outsourcing service providers appear to be on the rise, with a slow but steady recovery in the EU. Demand for outsourced services in Europe climbed in the last quarter of 2013, according to a study released in late February by market research firm Everest Group. The report showed that global outsourcing transaction volumes reached their highest point since the
beginning of 2012.



If demand continues to strengthen in the EU alongside more robust growth in the US and the Arab world, Egypt’s attractive fundamentals as a BPO destination, including its cost competitiveness and skill set, should help the country see a jump in both employment and activity over the medium-term.



Sunday, October 16, 2011

ITIDA: Egypt plans for rapid IT growth - Egypt Business Directory: News

ITIDA: Egypt plans for rapid IT growth - Egypt Business Directory: News


ITIDA is back at GITEX TECHNOLOGY WEEK, with an ambitious post-revolution ambition for the country’s ICT sector.
Yasser El Kady, Chief Executive Officer, ITIDA, says that the agency, which was formed in 2005 to promote Egypt’s growing IT sector, has a renewed focus, and new aspirational targets for growth.

“We are more aggressive, we are focusing on aspirational growth, and I think we are going in the right direction,” he says.




ITIDA has a wide ranging remit to support Egypt’s ICT sector, particularly in the areas of outsourcing and offshoring, and in software development. The agency has brought 80 companies to GITEX this year, including companies in systems integration and hardware assembly, to promote the sector and give the message that Egypt is definitely still ‘on’ for business.

The agency has set aggressive new targets for growth, including developing the outsourcing/offshoring industry in Egypt, which currently provides 60,000 jobs and accounts for $1.3 billion in business, to become a $7 billion business by 2016, and trebling software export over the next three years.





El Kady says that during the unrest earlier in the year, ITIDA proactively worked with the ICT sector, with multinational customers and clients, to reassure and support them. The agency also carried out outreach activities, including visiting major outsourcing clients in the US.

“During the revolution, ITIDA did a great job in communicating with the multinationals, supporting them, helping them. People were very appreciative that a government entity was doing this, and it was the starting point of building a trusting relationship with them,” he says.

The ICT sector in Egypt is now thriving, El Kady says, with a deal with a major multinational outsourcer, that will create 20,000 jobs in the country, due soon, and with several companies looking at acquisitions of Egyptian companies.

ITIDA is also working with 100 companies in the country, focused on verticals and Arabic language software and content.

Monday, January 10, 2011

Egypt hires brand agency to buff up private tech firms - Technology - ArabianBusiness.com

Egypt hires brand agency to buff up private tech firms - Technology - ArabianBusiness.com

Egypt’s government is funding a $15m branding push to coach local technology companies on how to rival foreign IT firms, a top official said in an interview in Cairo.

Yasser El-Kady, the CEO of ITIDA, the Information Technology Industry Development Agency which serves as the government’s point-of-contact for foreign tech companies looking to enter the Egyptian market, told Arabian Business that branding firm Atos Origin is already working with 100 companies in his country.

The move forms part of the government’s continued long-armed support of its fledgling information technology sector. Outsourcing revenue is currently estimated at $1.1bn. El-Kady said he wanted to hit $3bn by 2015.

Part of how it will do that is by attracting more foreign investment. Another, crucial step is making its own locally-grown companies players on the global level.

“We’ve hired consultants to come focus on Egyptian companies – to brand them on a world standard level,” he said. “We’re looking at company structure, how they can build a business plan and focus on HR development.

“We want to take [their standard] outside of Egypt and put them on a level with Europe.”
The cost of the branding push is so far estimated at $15m.

He said the government was also hoping to start a ‘Go to Africa’ programme, similar to its previous scheme, ‘Go to GCC’, calling on technology companies in the Gulf to work with Egypt as an outsourcer.

“We want to help out IT companies grow and develop into bigger markets,” he said. “The Egyptian market has limitations, so I have to take them outside – to the GCC and [now] to Africa.”

He said the Egyptian government would throw its full support behind expansion of its technology sector
“They’ll have strategic political support – we are enabling the companies, trying to have them work together,” he said. “Are they going to go together or as a solo? If you go in together, you have a higher chance of success, and less risk.”

The Egyptian government began its quest to become an outsourcing hub just 12 years ago, in 1999.
Taha Khalifa, the general manager for Intel Egypt, said that he arrived in Cairo in 2001, with one assistant – as the company’s only employee. With government support, he said Intel had swelled to nearly 70 employees, all Egyptian.

He credited the government with the quick expansion.

“There’s a lot of collaboration in the IT community, and the credit for that goes to the MCIT [Ministry of Communications and Information technology] because they put us together and said, ‘work together first on outsourcing’ – and we succeeded at that – ‘and now comes the innovation.’ The feeling is that we’re all working.”

Thursday, December 30, 2010

Intel optimistic about local ICT sector for 2011

Intel optimistic about local ICT sector for 2011

By Christopher Le Coq / Daily News Egypt December 28, 2010, 11:35 pm



CAIRO: Intel, which raked in a record $40 billion in revenue this year, is eager to watch that figure expand by entering adjacent markets in not just advanced economies but in Egypt, as well.

“Egypt is one of the highest growth markets in the region,” Taha Khalifa, general manager for Intel’s Egyptian operations, said in a one-on-one interview at the firm’s local headquarters in Cairo.

He pointed out that the ICT reforms that kicked off implementation five years ago have started to bear their fruit.

Khalifa also pointed out that PC growth in Egypt is over 30 percent, which has been the result of the rapid uptake of broadband connections thanks to the government’s effort to expand internet infrastructure.

“In terms of ICT indicators, ADSL subscribers are now around 1.2 million, representing a 40 percent growth rate, as well there being over 1 million 3G USB users,” he said.

Thus, there are over 2 million broadband users, which represents a five-fold increase over the past 2–3 years.
Notwithstanding his veneer of steadfast confidence regarding ICT expansion in Egypt, Khalifa admitted that hurdles remain.

To be sure, no emerging market comes without its own set of impasses, such as inadequate infrastructure, illiteracy and the like.

As many ICT experts and commentators have lamented, the level of Arabic content online remains disproportionately low relative to other major languages, representing a feeble 2 percent of the total content online.

He also noted that it is imperative that areas outside of Alexandria and Cairo be better connected with internet infrastructure so as to ensure further broadband uptake, which will in turn help consumers of these more remote areas link up with the “internet economy.”

Khalifa acknowledged that the troublingly high illiteracy rate – 30-40 percent – is an issue about which Intel is “concerned.”

Nevertheless, his firm is particularly eager to capitalize on the growth of smart gadgets – devices that are connected to the internet – which Intel predicts will reach 10 billion devices by 2015, Khalifa stated.
He also pointed out that by 2015 there will be an additional 1 billion worldwide connected to the internet.
Intel, he says, is “sure” that it will win “a good share of this growth” in Egypt and in other parts of the globe.
Thus, in view of Egypt’s burgeoning young population of increasingly PC and internet savvy consumers, Intel is further positioning itself to stake a claim in a segment of the local market.

Part of its 2011 ‘glocal’ strategy, Khalifa says, is to capitalize on the growing trend toward adjacent markets, specifically mobile applications – a sector with “lots of potential,” with the goal of continuing to foster the “always connected paradigm.”

As such, Khalifa explained, that Intel is taking the necessary steps to ensure that his firm is present when personal computing is integrated into “nearly every type of electronic device,” which includes netbooks, smart TVs, in-vehicle infotainment as well as a myriad of consumer electronic devices and connected and embedded machines.

To this end, as well as to ensure that Egypt is not only a strong consumer base for the country, but also one in which intellectual property is developed, Intel has engaged in a number of initiatives with the government.
Khalifa pointed out that Intel will seek to collaborate with the newly launched multi-billion dollar Technology, Innovation and Entrepreneurship Centre in Smart Village, whose objective is to catapult Egypt into the ICT forefront.

In addition the firm has established affiliations with several Egyptian universities, such as Alexandria University and Nile University, where the focus centers on low-power circuit and system design.

In parallel, Intel has been collaborating with the Information Technology Industry Development Agency (ITIDA) in order to help equip local software developers with the latest Intel technology, with the aim of driving the development and innovation of homegrown software.


Khalifa, as well as many other industry insiders, are especially excited about the potential of cloud computing to transform the ICT landscape within the next few years.

Given its potential, he said, “We better work to make sure that it comes to Egypt.”