Egypt’s cost efficiencies and robust digital infrastructure makes it a flourishing outsourcing destination
For companies looking to gain a competitive edge and focus more on strategic goals, outsourcing has emerged as a compelling solution as it increases productivity and efficiency, reduces cost, as well as leads to savings in time on day-to-day operations.
With an enabling business environment, government support, availability of a rich pool of skilled talent, and digital resonance, Egypt has positioned itself as a prime outsourcing destination, ranking 23th out of 78 outsourcing markets globally, according to Kearney’s Global Services Location Index 2023.
The Egyptian government has come to play a crucial role in fostering the growth of the outsourcing industry. Recognising its potential, the government has actively supported the development of the Information and Communications Technology (ICT) sector, which serves as a catalyst for attracting investors to choose Egypt as their outsourcing destination and business service hub. The ICT sector has experienced significant growth, with a nearly 17% increase during the fiscal year of 2021/2022, making it the fastest-growing sector in the country.
The launch of the “Digital Egypt Strategy for the Offshoring Industry 2022-2026,” a comprehensive five-year plan, has further bolstered this sector. Aimed at tripling export revenue generated from offshoring services, the innovative strategy also aims to create approximately 215,000 job opportunities in the field. Having welcomed 29 global firms into Egypt last year, the government aims to generate additional jobs in sectors such as Business Process Outsourcing (BPO), IT services, and engineering, with a combined annual export value of USD 1 billion. These initiatives, coupled with financial incentives and tax reductions, have contributed to Egypt’s attractiveness as an outsourcing destination.
With several global organisations looking to expand and export some of their support functions to Egypt, the country’s outsourcing market has witnessed substantial growth across a multitude of sectors including call centres, HR, finance, and accounting. Raya and Teleperformance are among the largest BPO operators in Egypt while key players in the call centre services, including Webhelp, Sutherland, and Concentrix, have recognised its potential and established a presence in the country. The outsourcing industry is expected to experience significant expansion in the coming years in both job creation (increasing by over 300% between 2022 and 2026 in the BPO sector alone) and contributions to the country’s GDP, as ITIDA projects the BPO industry will contribute between 1.2 and 1.4% of the country’s total GDP by 2026
