Egypt 'fast growing into major outsourcing hub'
Dubai, March 31, 2009
Egypt’s investment strategy in education, infrastructure and Information Technology is paying off and is attracting offshoring and outsourcing business, according a new study by London School of Economics and Political Science (LSE).
Egypt scored particularly high in terms of attractiveness of its low cost base, skilled workforce and market potential, said the LSE outsourcing unit in the study entitled ‘Beyond BRIC.’
The study, researched independently by the LSE over 5 months, provides an original analysis of the offshoring competitiveness of 14 non-BRIC countries setting Egypt within the context of these locations.
‘Beyond BRIC’ was launched jointly by the LSE outsourcing unit and the Information Technology Industry Development Agency of Egypt ( Itida) at a ceremony in Central London.
The Itida-commissioned study was presented at the launch by Professor Leslie Willcocks, director of the LSE outsourcing unit. Also present was Dr Hazem Abdelazim, CEO of Itida who spoke about Egypt’s continuing progress as a global offshoring location.
'Beyond BRIC' utilised the LSE outsourcing unit’s database of 1,000 plus global sourcing IT, BPO and offshoring studies from 1993-2009 as well as interviews with 50 plus client organisations, suppliers and analysts to compare Egypt with the following countries: Romania, Bulgaria, Poland, Slovakia, Czech Republic, Belarus, Morocco, Tunisia, Costa Rica, Mexico, Venezuela, Vietnam and the Philippines.
Prof Willcocks said the new study sheds new light on the global offshoring industry outside of traditional outsourcing markets, such as India.
'Egypt fared particularly well – coming top of our analysis of cost perception, skills comparison and market potential. It’s been a privilege and education to undertake this research,' he added.
Dr Hazem Abdelazim said, “The Beyond BRIC study gives excellent first-hand evidence of Egypt’s recent development as a centre for offshoring. We are delighted by the report’s recognition of Egypt’s key IT offering and hope to be able to continue this positive growth trend.”
A key finding of the report was that the non-BRIC countries investigated are creating new and profitable offshoring opportunities, capable of development even in recessionary times.
Though it remains to be seen how all non-BRIC countries stand to benefit from this dynamic, the authors of the report make clear that Egypt has made a substantial start in this market.-TradeArabia News Service