Egypt could become the top outsourcing destination worldwide, says expert
By Christopher Le Coq /Daily News Egypt
CAIRO: Worldwide demand for outsourcing is tilting towards Egypt as Europe now spends more on outsourcing than North America. According to Denise D’Elia, a Vodafone representative, outsourcing as an industry was valued at $13 billion last year.
Egypt has the third-largest talent pool in the EMEA region. This is largely due to the country's rich pool of young talent — 50 percent of the population is under 25.
Although this is a positive development, for Egypt to play a major outsourcing role worldwide, it needs to build its capacity in several areas, D’Elia said.
Moreover, a provider must ensure that it is a reliable supplier and provides certification. Reducing “churn” — an industry term for lowering the rate of customer loss — is also critical.
D’Elia also highlighted the importance of education, which in Egypt is an area with promise. Indeed, the representative indicated that Egypt pumps out 330,000 university graduates per year — the third largest in the region — which will provide a steady flow of job seekers to the sector.
She noted that firms such as Vodafone, which have substantial outsourcing operations in the country, seek young graduates with specializations in engineering, commerce, and industry.
As it so happens, Egypt currently has a significant number of students whose studies focus on these three areas.
Furthermore, as an outsourcing center for Europe, D’Elia emphasized the importance for Egypt to maintain the population’s strong European language skills.
She said that it is the only country in the world that boasts an aptitude in various European languages — including some less widely-known languages, such as Polish — which thereby give Egypt a competitive edge.
A key area that must remain a focus is controlling cost, she said. According to D’Elia, firms are looking for increased revenue per customer, and this is an area where off-shoring can play a role.
However, in terms of cost, Egypt performs well in relation to other outsourcing destinations; Egypt even performs well in comparison to India and the Philippines, which are currently the two top choices for outsourcing worldwide.
D’Elia stated that cost in Egypt is competitive from both a personnel and non-personnel perspective (which includes infrastructure), according to data gathered by ITIDA and various consultancy firms.
She highlighted the efforts taken by the government to drive the sector, noting reforms in the areas of taxation and customs simplification. In addition, the financial sector has gradually become more privatized, and legislative and institutional frameworks fostered through “one-stop shops” have been established. Many of these legislative and institutional frameworks have even been implemented within 72 hours, which is quite faster than in previous years.
In terms of infrastructure, strides have also been made.
Smart Village was initially established to serve as a concentration of businesses specializing in information technology, yet due to its strong success it quickly became a headquarters for a variety of multi-national corporations.
Following its example, the new IT Maadi Park will be ready for operation in 2012. It is slated to house approximately 300,000 employees in over 40 buildings.
Last year, Egypt was ranked 13th in the field of global service delivery, according to an AT Kearny survey. Thanks to governmental efforts and the positive market dynamics already inherent to Egypt, the country was ranked sixth this year.
“Many countries would like to be in that position,” D’Elia said.
Showing posts with label Talent Pool. Show all posts
Showing posts with label Talent Pool. Show all posts
Monday, October 4, 2010
Sunday, September 5, 2010
Technology-driven education
Technology-driven education
04 September 2010
Educational reform must go beyond enrolment rates and numbers of schools, writes Magda Shahin
Why exactly is there steady complaint about Egypt's educational system? After all, we have overcome a hurdle to give more Egyptians access to education. Efforts to raise enrolment rates have paid off in all three educational levels over the past decade: from 83.7 per cent to 98.3 per cent in primary, 61.4 per cent to 87.1 per cent in secondary and from 18.1 per cent to 32.6 per cent in higher education.
But promising enrolment figures are overshadowed by concerning unemployment rates, especially amongst the educated. Roughly 80 per cent of the total unemployed population is comprised of university graduates and intermediate vocational trainees, the two echelons of the education system that are receiving the majority of government expenditures on education.
Egypt's schools and universities do not fare well even when compared to Arab neighbours. Regretfully, since 1991, public expenditures on education as a percentage of GDP remain practically unchanged at 3.8 per cent.
With an increasing number of educated people unable to find jobs, it has become apparent that the higher number of schools and classrooms has not equalled a better quality of education. The general consensus is that throughout the years, those in charge of the educational system have only paid lip service to the quality of education. As the standard curricula focuses primarily on memorisation, students do not develop analytical skills and creativity that are in demand by today's labour market. Our core problem is obvious -- lack of quality education that leads to de-linkage between today's private sector requirements and degree holders.
Other countries, notably Asian ones, realised early on that in order to sustain growth they had to improve the quality of their educational system. Increasing student performance in science and mathematics were key determinants of their educational reform, which developed a more productive, technology-based economy capable of creating and utilising technological innovations.
Identifying the core problem of quality is half the battle, yet to spur reforms we need a catalyst for change within the Egyptian education system. Both developed and developing nations alike are wielding information and communication technology (ICT) to dramatically improve the skills and abilities of students and to stimulate engaged participation by all citizens. ICT, when fully integrated into schools, universities and communities, is a difference maker, a bridge builder and a vehicle for innovation.
The Egyptian government is seemingly aware of this need for reform, and has embarked on a series of partnerships with the private sector to introduce ICT into the learning process. Noteworthy initiatives include the ICT for Illiteracy Eradication project (ICT4IE), which won the UN's 2009 World Summit Award for its creative use of ICT to teach Egyptians how to read. There is also the Smart Schools Network (SSN) and the Egyptian Education Initiative (EEI), which have both brought ICT to students and teachers of all levels in Egypt's education system. Additionally, Egypt's Information Technology Industry Development Agency's (ITIDA) Edu-Egypt supports ICT proficiency amongst university students to ready them for the labour market.
The ability of the government to partner with the private sector and mobilise resources and deliver impact is indeed commendable. However, the beneficiaries remain in the thousands, while roughly 16 million students need to benefit from "ICT-driven learning", as put by Sherif Kamel, dean of the AUC Business School.
Yet we cannot let these remaining challenges discourage us, nor can progress to date make us complacent. What we need to do now is address two realities: e-education adoption is a long-term project and does not yield nationwide benefits in the short-term; and the central components of a knowledge economy are still lacking in Egypt.
It is essential to recognise that educational reform must go beyond simply increasing enrolment rates, schools, classrooms and teachers. If we want to be rightly placed among emerging economies, we need to revamp our educational system at all three levels: primary, secondary and higher education. Training students, teachers and staff to use new technologies effectively will help boost the quality of Egypt's education and also help secure future socioeconomic prosperity.
Additionally, the ministries of education, higher education and communication and information technology need to work closely. The three ministries must jointly develop the national e-education strategy to prevent duplication and to maximise impact. A fusion of the education and ICT sectors must entail collaborations between the three ministries. Both the ICT and education agendas are heading in the right direction and yet must become increasingly intertwined.
Training yields dividends in the long-term and building student and teacher ICT capacities is as important as installing computers and high bandwidth access. Policymakers need to think of how to achieve both educational and ICT goals simultaneously to lessen the digital divide within Egypt's education system and push our country into the ranks of today's global knowledge economies.
The writer is director of the Trade Related Assistance Centre of the American Chamber of Commerce in Egypt (AmCham). This article is part of a new study by AmCham on the ICT industry in Egypt and its role in the country's social and economic development.
© Al Ahram Weekly 2010
04 September 2010
Educational reform must go beyond enrolment rates and numbers of schools, writes Magda Shahin
Why exactly is there steady complaint about Egypt's educational system? After all, we have overcome a hurdle to give more Egyptians access to education. Efforts to raise enrolment rates have paid off in all three educational levels over the past decade: from 83.7 per cent to 98.3 per cent in primary, 61.4 per cent to 87.1 per cent in secondary and from 18.1 per cent to 32.6 per cent in higher education.
But promising enrolment figures are overshadowed by concerning unemployment rates, especially amongst the educated. Roughly 80 per cent of the total unemployed population is comprised of university graduates and intermediate vocational trainees, the two echelons of the education system that are receiving the majority of government expenditures on education.
Egypt's schools and universities do not fare well even when compared to Arab neighbours. Regretfully, since 1991, public expenditures on education as a percentage of GDP remain practically unchanged at 3.8 per cent.
With an increasing number of educated people unable to find jobs, it has become apparent that the higher number of schools and classrooms has not equalled a better quality of education. The general consensus is that throughout the years, those in charge of the educational system have only paid lip service to the quality of education. As the standard curricula focuses primarily on memorisation, students do not develop analytical skills and creativity that are in demand by today's labour market. Our core problem is obvious -- lack of quality education that leads to de-linkage between today's private sector requirements and degree holders.
Other countries, notably Asian ones, realised early on that in order to sustain growth they had to improve the quality of their educational system. Increasing student performance in science and mathematics were key determinants of their educational reform, which developed a more productive, technology-based economy capable of creating and utilising technological innovations.
Identifying the core problem of quality is half the battle, yet to spur reforms we need a catalyst for change within the Egyptian education system. Both developed and developing nations alike are wielding information and communication technology (ICT) to dramatically improve the skills and abilities of students and to stimulate engaged participation by all citizens. ICT, when fully integrated into schools, universities and communities, is a difference maker, a bridge builder and a vehicle for innovation.
The Egyptian government is seemingly aware of this need for reform, and has embarked on a series of partnerships with the private sector to introduce ICT into the learning process. Noteworthy initiatives include the ICT for Illiteracy Eradication project (ICT4IE), which won the UN's 2009 World Summit Award for its creative use of ICT to teach Egyptians how to read. There is also the Smart Schools Network (SSN) and the Egyptian Education Initiative (EEI), which have both brought ICT to students and teachers of all levels in Egypt's education system. Additionally, Egypt's Information Technology Industry Development Agency's (ITIDA) Edu-Egypt supports ICT proficiency amongst university students to ready them for the labour market.
The ability of the government to partner with the private sector and mobilise resources and deliver impact is indeed commendable. However, the beneficiaries remain in the thousands, while roughly 16 million students need to benefit from "ICT-driven learning", as put by Sherif Kamel, dean of the AUC Business School.
Yet we cannot let these remaining challenges discourage us, nor can progress to date make us complacent. What we need to do now is address two realities: e-education adoption is a long-term project and does not yield nationwide benefits in the short-term; and the central components of a knowledge economy are still lacking in Egypt.
It is essential to recognise that educational reform must go beyond simply increasing enrolment rates, schools, classrooms and teachers. If we want to be rightly placed among emerging economies, we need to revamp our educational system at all three levels: primary, secondary and higher education. Training students, teachers and staff to use new technologies effectively will help boost the quality of Egypt's education and also help secure future socioeconomic prosperity.
Additionally, the ministries of education, higher education and communication and information technology need to work closely. The three ministries must jointly develop the national e-education strategy to prevent duplication and to maximise impact. A fusion of the education and ICT sectors must entail collaborations between the three ministries. Both the ICT and education agendas are heading in the right direction and yet must become increasingly intertwined.
Training yields dividends in the long-term and building student and teacher ICT capacities is as important as installing computers and high bandwidth access. Policymakers need to think of how to achieve both educational and ICT goals simultaneously to lessen the digital divide within Egypt's education system and push our country into the ranks of today's global knowledge economies.
The writer is director of the Trade Related Assistance Centre of the American Chamber of Commerce in Egypt (AmCham). This article is part of a new study by AmCham on the ICT industry in Egypt and its role in the country's social and economic development.
© Al Ahram Weekly 2010
Sunday, August 1, 2010
Egypt becoming more and more Attractive to IT Firms | MicroSourcing
Egypt becoming more and more Attractive to IT Firms | MicroSourcing
n a relatively short span of time, Egypt has become a very favorable outsourcing location for IT companies.
With its low cost of living and a pool of highly skilled workers, the country now offers value similar to that of India when it comes to outsourcing costs, although the former still has its own advantages such as its geographic location, large number of graduates, and language skills. Banks like HSBC, IT firms such as Microsoft, and telecommunications companies including Vodafone and France Telecom have already set up operations in Egypt.
“Factors such as the stability and growth of the Egypt economy; a concentrated pool of talent in Egypt and our historically strong relationship with the Egyptian government have all led to a favourable environment for the technical support of Microsoft Xbox to be located in Egypt,” said Aly Kamal, a spokesman for Microsoft Egypt.
n a relatively short span of time, Egypt has become a very favorable outsourcing location for IT companies.
With its low cost of living and a pool of highly skilled workers, the country now offers value similar to that of India when it comes to outsourcing costs, although the former still has its own advantages such as its geographic location, large number of graduates, and language skills. Banks like HSBC, IT firms such as Microsoft, and telecommunications companies including Vodafone and France Telecom have already set up operations in Egypt.
“Factors such as the stability and growth of the Egypt economy; a concentrated pool of talent in Egypt and our historically strong relationship with the Egyptian government have all led to a favourable environment for the technical support of Microsoft Xbox to be located in Egypt,” said Aly Kamal, a spokesman for Microsoft Egypt.
Thursday, June 10, 2010
Egypt Poised To Lead In Outsourcing | CIO - Blogs and Discussion
Egypt Poised To Lead In Outsourcing | CIO - Blogs and Discussion
Egypt’s Information and Tecjavascript:void(0)hnology Industry Development Agency (ITIDA) is highlighting the country’s global outsourcing capacity and services at an Annual Shared Services Exchange held this week in Austin, Texas. The event is invitation only and is meant for executives who are currently focusing on strategy in offering value in shared services.
One of the top outsourcing countries, Egypt is a rapidly growing outsourcing destination and one of the favored locations for offshoring in the Middle East. The country has seen numerous investments in the last year alone. Some of the firms interested in tapping into Egypt’s talent pool are Stream Global Services, EMC, and Sykes Enterprise. The firms are working together with ITIDA to outsourced to Egypt.
Hossam Megahed, Board Member for ITIDA will be speaking at panel discussions at the Shared Services Exchange with global executives.
Egypt’s Information and Tecjavascript:void(0)hnology Industry Development Agency (ITIDA) is highlighting the country’s global outsourcing capacity and services at an Annual Shared Services Exchange held this week in Austin, Texas. The event is invitation only and is meant for executives who are currently focusing on strategy in offering value in shared services.
One of the top outsourcing countries, Egypt is a rapidly growing outsourcing destination and one of the favored locations for offshoring in the Middle East. The country has seen numerous investments in the last year alone. Some of the firms interested in tapping into Egypt’s talent pool are Stream Global Services, EMC, and Sykes Enterprise. The firms are working together with ITIDA to outsourced to Egypt.
Hossam Megahed, Board Member for ITIDA will be speaking at panel discussions at the Shared Services Exchange with global executives.
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