For several years, the country has been moving up the rankings in some of the ICT sector’s most influential reports. Reports published by A.T. Kearney, Yankee Group, Datamonitor, Gartner, The London School of Economics, Global Services-Tholons and the Commonwealth Business Council highlight Egypt’s continued successes and what makes it an attractive destination for global outsourcing. In the last couple of years Egypt has really made an impact in these reports, showing that Egypt is no longer one of the industry’s best kept secrets and that it is firmly establishing itself as a global hotspot for business process outsourcing.
In 2008, Yankee Group listed Egypt as the best positioned country in the Middle East to capitalize on the region’s booming ICT sector and the country’s capital, Cairo, was listed 7th - up from 11th in 2007 - in the Global Services-Tholons Study of the top 50 emerging global outsourcing cities. Egypt has also topped the World Bank’s list of reformers in 2006/2007 (previous high was 6th in 2004/2005) as a result of its reforms to labor, investment and intellectual property laws which have fuelled the country’s growth.
In 2009, Egypt was featured prominently as a leading global offshoring destination in the London School of Economics’ Beyond BRIC study – an original, academic and independent piece of research examining the future of the global outsourcing industry. Most recently, Egypt was ranked as the number one outsourcing destination in Africa, according to a report conducted by the Commonwealth Business Council and CyberMedia.
In 2010, Cairo has been recognized as one of the world’s top offshoring cities, ranked 4th emerging city in the latest ‘Top 100 Outsourcing Cities’ report conducted by Global Services-Tholons. Gartner Analysis of Egypt as an Offshoring Services Location has analyzed 30 offshore services locations and rated each using 10 criteria. According to Gartner’s analysis, Egypt's government continues to promote IT development aggressively, but there remain concerns about the political and economic environment and the security and privacy of data and intellectual property. The key findings included that Egypt is an attractive offshore option as Egypt remain competitive with those of other "nearshore" locations available to organizations in Western Europe. Gartner also stated that Egypt has a large labor pool, over 50% of which works in the services industry but the unemployment rate of 9.4% could cause talent migration problems. Meanwhile the Thought Leadership Report on the European Global Sourcing Market by Everest, Egypt is among the most favorable locations that can support a credible play across multiple European languages.Egypt has a large English speaking pool with spikes in French, German, Italian and Spanish skills that are available in moderate scale. Furthermore, Egypt is one of the lowest cost locations to serve the European market.
In the A.T. Kearney Global Services Location Index™, 2011, Egypt was named the fourth most attractive location in the world for offshore services. The country has scored consistently well over time because of its economical wage rates and large supply of talent. The Egyptian government has also actively promoted the sector abroad while aggressively pushing industry to bring its standards up to international levels. However, the recent political turmoil in the country could have long-term consequences for Egypt as a sourcing location.
These reports not only demonstrate the leaps that Egypt has made in terms of infrastructure, talent and attractiveness as an outsourcing destination but show the world what Egypt has to offer local and multinational companies.