Egypt is a leader in outsourcing, a main tool for investment in the telecommunications and information technology sector. In the 2013-2014 fiscal year, the sector contributed LE11 billion (4.1 percent) to the gross domestic product (GDP).
With outsourcing, the government aims to provide the technological personnel necessary for the growth of the telecommunications sector. It aims to increase the sector’s contribution to LE18 billion in the 2017-2018 fiscal year and increase the number of employees in outsourcing companies.
According to Communications Ministry statistics, there are 43,000 employees directly working in outsourcing services and 163,000 people who work indirectly.
Egypt is competing in the outsourcing field with India, the latter which has 60 percent of the world’s outsourcing business, with an annual revenue of US$71.7 billion in 2009, compared to $64 billion in 2008.
A report issued by the McKinsey Global Institute and the Information Technology Industry Development Agency said Egypt will be able to make between $90 million and $150 million per year from expansions in outsourcing services.
Egypt's outsourcing exports grew after the January 2011 revolution, despite expectations of the opposite, to reach $1.5 billion, an increase of $400 million from the period before the revolution. The industry was not affected when the Internet shut down during the revolution, unlike other sectors.
The Global Services Location Index for the best countries that provide outsourcing services, which is issued by A.T. Kearney, said Egypt is still topping the Middle East and Africa in providing outsourcing services to Europe. It placed Egypt among the top 10 locations in this field. Despite that, Egypt has gone down six steps due to political unrest.
The report said that Egypt’s ability to attract investments in outsourcing is at 3.20 points, compared to 3.10 points in 2011. The talent and skills rating remained stable at 1.36 points, but the business environment rating fell from 1.35 to 1.06.
The report said the size of the outsourcing industry in Egypt is worth $1.4 billion, which makes it an important industry for the country to cultivate, particularly when faced with instability.
Edited translation from Al-Masry Al-Youm
