Egypt's IT offshoring and business services sector sees strong growth momentum with 29 new agreements with technology MNCs
A signing ceremony between ITIDA and 29 global enterprises was held in Cairo, showcasing sustained confidence in Egypt's offshoring and outsourcing sector
The agreements, witnessed by Egypt's Prime Minister, create over 34k jobs directed towards exports
CAIRO, Dec. 1, 2022 /PRNewswire/ -- Branded as an attractive Mediterranean hub, Egypt is a choice for many as a big business destination, given its premium offshoring status. The country has proved its resilience as a leading global IT offshoring and outsourcing hub with numerous investments in the sector over the past few years. Today, the confidence of multinational partners in Egypt's highly skilled talent pool is highlighted through a signing ceremony held by the Information Technology Industry Development Agency (ITIDA) cementing Egypt's position as a leading global offshoring and outsourcing hub.
The signing ceremony of 29 agreements with big IT offshoring and business process services providers, was witnessed by the Prime Minister of Egypt Dr. Mostafa Madbouly, in the presence of Minister of Communications and Information Technology, Dr. Amr Talaat, at Sultan Hussein Kamel Palace in Cairo; one of Egypt's most historic gems.
Dr. Amr Talaat, Minister of Communications and Information Technology endorsed the agreements inked with 29 multinational companies, that creates over 34 thousand jobs directed towards exports through 35 global delivery centers with export value worth USD 1 billion annually. "These agreements reflect Egypt's conducive business environment and multinationals' confidence in our qualified local talent," Talaat commented.
H.E. Talaat underlined Egypt's potential as the next big hub for digital and high-end services, thanks to the constant efforts made to boost Egypt's competitiveness in the offshoring industry. "With its unique central location at th crossroads between 3 continents, Egypt delivers a resilient high-quality digital infrastructure, and provides a supportive legislative framework catching up with the global rapid growth," he continued. "Our plentiful supply of tech talent is all set and ready at a very competitive cost, with proven experience in business services delivery for global firms to more than 100 countries with 20 different languages," Talaat affirmed.
Egypt's offshoring industry is witnessing an unprecedented momentum of growth. The country enjoys many competitive advantages that established its reputation as a favorable global offshoring destination. The diverse IT & digital services, abundance of talent, cost competitiveness, resilient business operations, and the government's support are among Egypt's unique value proposition that encourage global enterprises to launch and expand their global operations.
Amr Mahfouz, CEO of ITIDA, said: "We're thrilled to sign so many business agreements with global technology companies, which demonstrates the strength of Egypt's IT sector to attract new business and cement existing relationships. The current geopolitical risks have led to major challenges and service disruption across key delivery locations, combined with the aching global shortage of talent. But through our mission to support the development of the technology sector in Egypt, ITIDA has helped industry players to be well-positioned and supplied with highly skilled, reliable talent, making Egypt the best option for multinationals looking to offshore and outsource their business.
"ITIDA continues to invest heavily in building the digital and soft skills of our large talent pool, with a strategic focus on developing the country's capabilities in the high-value services, including engineering, research & development (ER&D), embedded software, and electronic design. This latest round of deals will be a significant contributor in helping ITIDA to achieve the goals of the Digital Egypt strategy for the offshoring industry which aims to multiply export revenues and create high-value job opportunities for our skilled domestic talent pool," Mahfouz added.
The value of Egypt's digital exports will increase by $1 billion annually, marking a significant growth to the current export revenue of $4.9 billion. Moreover, the agreements include both new partnerships with leading technology companies launching global delivery centers first time, and expansions of existing successful business relationships which will triple the size of operations in Egypt.
Entering the country for the first time are Capgemini, Evolvice, Nortal, PWC, Tech Mahindra, and Trimetis. While the leading companies who are expanding their current business include Advansys ESC, Amazon, ATOS, IBM Egypt, Microsoft, Majid Al Futtaim Global Solutions, Majorel, MEAPAL, Concentrix, MicroWize Technology, CrossWorkers, Dell Technologies, Pepsico, Expleo, SEITECH Solutions, Honeywell, Sitel Group, Sutherland, Webhelp, SYS Misr for Information Technology Services, Pixelogic, Valeo, and Vodafone Intelligent Solutions.
The 34,000 new jobs will spread across different export sectors including 21,000 in the Business Process Services sector (Contact Centers and Shared Services Centers), 10,500 in the IT Services sector, and 3,000 in the Engineering, Research & Development (ER&D) sector.
The agreements signing is in line with ITIDA's mandate and strategic objectives to drive more foreign investments in the IT sector, increase Egypt's digital exports, and create more jobs in the offshoring sector. Last February, the Information Technology Industry Development Agency (ITIDA) launched the Digital Egypt Strategy for Offshoring (2022-2026) to unlock further growth potential in the industry, based on a thorough and objective study of the Egyptian market and the global demand.
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SOURCE Information Technology Industry Development Agency (ITIDA)
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