The document summarizes an interview with Dr. Hazem Y. Abdelazim, CEO of the Information Technology Industry Development Agency (ITIDA) in Egypt.
In 3 sentences:
Dr. Abdelazim discusses how the Egyptian government has invested heavily in developing world-class infrastructure like the Smart Village technology park and improving education initiatives to ensure a steady supply of skilled graduates for the growing IT and BPO industries. Several measures are also being taken to enhance the skills and multi-lingual abilities of Egyptian talent. The future of Egypt's outsourcing industry looks promising with continued investments in infrastructure and talent as well as government support for attracting more international companies.
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Egypt Cultivates Talent Pool to Sustain Outsourcing Growth
1.
2. Advertorial Interview of Country Representative
We need to have continued investment
to enhance the value of the talent pool
When and how did the outsourcing center, cable TV and video conferencing
industry evolve in Egypt? systems, state-of-the-art power network,
and uninterrupted power supply and
In Egypt, the national Information and standby generators.
Communication Technology (ICT) industry is
emerging as a role model of deregulation and Additional Smart Villages are being planned
privatization as well as a catalyst for reforms for Alexandria and Damietta, while the
in other sectors. The overall ICT industry has Maadi Contact Center Park in Cairo will be
managed to maintain a growth rate of 20 up and running in 2012 for 30,000 people
percent CAGR in 2008, and has attracted local working in business process outsourcing.
and foreign investments of more than US$8 The first three buildings in the park were
billion over the past three years. inaugurated in May 2009. Smart Village and
the Maadi Contact Center Park will
The Egyptian ICT sector has managed such a ultimately be home for over 110,000
growth rate mainly due to the quality of its professionals. Egypt has an electrification
infrastructure and a strategy that provides an rate of 98 percent and is a net exporter of
environment conducive to business. Through electricity providing a secure, continuous
the public-private partnership mode, the supply of electricity to the industry.
Ministry of Communications and Information
Technology (MCIT) and Information In the past few years, the telecom sector has
Technology Industry Development Agency been substantially liberalized. There are
(ITIDA) launched a strategy in 2006 outlining three mobile phone operators (Mobinil,
Dr. Hazem Y. Abdelazim
how the country should utilize its competitive Vodafone Egypt and Etisalat) all of which
advantages to become a destination of have licenses to provide 3G services. Egypt’s CEO, Information Technology Industry
choice for BPO/ITO. The strategy consists of telecommunications infrastructure is very Development Agency (ITIDA)
programs designed to enhance the capacities well-developed, and the international long-
of local companies, scale up a talent pool distance rates have been lowered in an
equipped with needed skill sets, and attract effort to promote the contact center protocol in late 2007 to prepare a large
foreign direct investments. industry. segment of Egyptian graduates for
BPO/ITO through the EduEgypt
The government is investing in the building employability skills program. The university
of roads, and improving the transport intervention program is aiming at
What infrastructure improvements have infrastructure in Cairo. A third Cairo metro supplying the market with 10,000
the government made to meet the line is under construction. professionals annually by 2012. Now in its
demands of this growing industry? third phase, EduEgypt is being applied in
The government is also planning to have
19 faculties inside nine universities across
Egypt has invested in developing world-class US$ 2.75 billion of public-private funds to
the country. The program graduated
infrastructure facilities, including real estate, be injected into the economy for the
around 3000 students so far. Another
telecommunications and Internet development of key infrastructure.
finishing schools program is underway to
connectivity. The Smart Village on the
produce an additional 20,000 professionals
outskirts of Cairo provides a state-of-the-art
annually by 2012. The ITIDA is actively
home for over 20,000 people working in the
What measures is the government taking involved in the program design as it is
IT industry and has the capacity for a further
to ensure the quality of the talent pool in tasked with developing the IT/ITES industry
60,000. The main ICT infrastructure of the
the country? with the aim of increasing exports.
Smart Village consists of high-speed network
for data, voice and video transmission, Virtual The MCIT and the Ministry of Higher The program is designed and implemented
Private Network (VPN) connection, Voice over Education and Scientific Research signed a by a number of renowned global partners.
Internet Protocol (VOIP) capabilities and data
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3. Advertorial Interview of Country Representative
EduEgypt aims at providing the talent pool the country, supported by leading ICT
with the skills required for BPO/ITO and companies such as Cisco, HP, IBM, Microsoft
uses a skills matrix approved by the BPO and Intel. The Egyptian Information,
industry and endorsed by our global Telecommunications, Electronics and
partners to instill the required set of skills Software Alliance (EITESAL), which focuses
for BPO/ITO. The program includes Train the on bridging the gap between academia
Trainer and Train the Master Trainer and the ICT industry, helps young talent
components to help build the national develop practical and industrial skills
training industry capacity. within educational programs. ITIDA has
also recently launched a program to
We are also launching an advanced promote industry and university
management and professional training collaboration, linking academic research
program in 2010 to provide industry with industry and market needs. The above
relevant training to the IT-BPO sector. The as well as the EduEgypt program depend
program will be introduced as a proactive heavily on the participation of the industry
measure to inject middle management into to ensure equipping fresh graduates with
the market. This will help avoid the lack of the right skill sets.
middle management experienced by other
outsourcing destinations.
As of Q4 2009, we started a European What measures need to be taken to
language program, to enhance the multi- sustain the current competitive edge in
lingual skills of the entry-level talent base. the global market?
The program started for French and
German languages and will include Spanish In order to anticipate and adapt to
and Italian in the coming stage. Its design changed industry realities, government
resembles that of EduEgypt but tackles bodies constantly revisit their talent and
languages specifically and it is infrastructure initiatives as well as
implemented in cooperation with leading government support to potential investors.
global cultural and language centers.
A major focus in the future will be the
The Information Technology Institute (ITI) is implementation of more comprehensive
also offering several training programs talent programs as well as making tier II
which include a nine-month diploma cities more conducive for investment.
offered by the Combined Software
Application Program, Knowledge Transfer
Partnership Program, and more than 20
customized IT training programs.
Several programs are currently under
preparation that will enhance the technical
capabilities of the students in a broad range
of IT service lines (from package
implementation to remote infrastructure
management). These will increase the
suitability of the talent pool in IT-specific
areas.
While the Information Technology Institute,
First Source, IBM Daksh, Infosys BPO are
responsible for the training, Hewitt and
Eduquity are carrying out the testing process. Are there any industry initiatives to
EduEgypt also listens to industry needs foster the development of this talent
through a unified industry calibrated pool?
assessment and testing modules to ensure
There has been an Egyptian Education
quality.
Initiative set up to improve ICT education in
Global Services / www.globalservicesmedia.com
4. Egypt is fast moving beyond traditional Advertorial The Egypt Factfile
outdated stereotypes to emerge as one
of the most developed economies of
the Middle East and North Africa.
Located at the crossroads of Europe, the Middle East and Africa, Egypt has
continued to gain recognition in the outsourcing industry in the past year.
There are numerous reasons behind the success story of Egypt as a preferred outsourcing
destination. The core reason behind the rapid development of Egypt is a talent base of skilled
multi-lingual graduates. Many graduates are fluent in French, German, Italian and Spanish as well
as English. Largely as a result of its strong talent base and strong government backing Egypt has
emerged as the sixth most attractive offshore destination according to the 2009 AT Kearney Global
Services Location Index. A large talent pool of nearly 330,000 graduates, many of them in the areas
of commerce, science and engineering, provide support to the growing Business Process
Outsourcing (BPO) industry in the country. The well-concerted efforts by the Egyptian government
to maintain this steady supply of well-trained graduates have gone a long way in attracting
foreign investment from leading international organizations.
Egypt boasts world-class infrastructure in terms of real estate, telecom and Internet connectivity.
The ‘Smart Village’ concept of a technology park with state-of-the-art infrastructure has caught on
well with call centers and exported IT services. Strong government backing of the Information
Technology Industry Development Agency (ITIDA) and the General Authority for Investment
(GAFI) has helped to develop the BPO industry in the country.
The strategic location of Egypt is an added advantage, as it allows easy access and connectivity to
several international submarine cables. All these factors, coupled with the cost-effectiveness of
services in the country, go to providing a safe, modern business environment to the industry.
at a glance
Currency: Egyptian pound (EGP) Countries that outsource business to Egypt:
Europe, Middle East, North Africa, Australia, New Zealand,
Main industries: Textiles, food processing, tourism, India, North America
chemicals, cement, metals, construction, BPO
Key verticals: Banking, healthcare, business solutions,
Literacy rate: 57.7% telecommunications
Languages spoken: Arabic (official), English, French, Some big players: Oracle, IBM, Cisco, Vodafone, HSBC, Google,
Italian and Spanish Xceed, Microsoft, Wipro, Allied Soft, Stream Global Services,
Teleperformance, Valeo, SQS, Raya, Etisal, Orange, EMC,
International airport: Cairo, Luxor, Ophira, El Arish, Hurghada MahindraSatyam, HP-EDS
GDP growth (World Bank): 7.1% (2008 figures) Key competitive advantages: Infrastructure and connectivity,
multi-lingual talent pool, cost-competitiveness, strategic
geographic location and supportive environment
IT-BPO sector growth Main cities: Cairo with its Smart Village and
Maadi Park (under construction)
Total number of employees: Over 15,000 directly employed
in IT-BPO & over 45,000 indirectly supported by the industry Emerging locations: Alexandria, El Mansoura, Assuit
Global Services / www.globalservicesmedia.com
5. Advertorial Opportunities and Future Potentials
looking ahead
The efforts taken to promote the outsourcing industry in the country have proved successful. A recent report by
the Commonwealth Business Council ranks Egypt as the number one outsourcing destination in Africa and the
growth of the industry has in turn contributed to the socio-economic development of the country as a whole.
Social and political stability in Egypt are among the main factors attracting international investment in Egypt and
a high growth rate is expected in the coming years.
In recent years, the Egyptian government has being positive, especially that it takes into The overall perception in Egypt towards a
accelerated the pace of reforms in the account global changes. Other industry career in IT is extremely positive and is
country with emphasis laid on the IT-BPO support sectors, such as telecommunications, reflected by the choices many young
sector. Key initiatives have been launched in education and training, banking and Egyptians make when choosing a course at
the form of tax reforms, customs reforms, transportation, have also developed with the university. Of the 330,000 students that
financial sector reforms and intellectual growth in the IT-BPO sector. graduate in the country every year, around
property protection reforms to aid the 100,000 study subjects directly applicable
IT-BPO operations in the country have so far
growth and development of the industry. to the IT industry. The future of the industry
focused around the Smart Village in Cairo. The
Enormous strides have been made in in the country looks promising with
government is now developing Smart City II
intellectual property protection and the continued investments and infrastructure,
or Maadi Park as it is also known in Cairo, to
piracy rate in Egypt has dropped to about 60 government support and international
meet the demands of the growing industry.
percent, which is one percent less than the quality resources.
The park is expected to be fully operational
international rate. This proves the country's
by 2012. The Egyptian telecommunications
keenness to attract multinational companies
infrastructure is also engineered to provide
and its concern to protect intellectual
substantial services and to absorb the rapidly
property rights. Egypt is targeting a US$1
growing ICT industry. With its current
billion outsourcing industry exports by 2010.
infrastructure, and the large number of Dr. Hazem Y. Abdelazim
international and regional fiber optic cables CEO, Information Technology
By the end of 2009, over 15,000 jobs are Industry Development Agency (ITIDA)
directly based on the IT-BPO sector and over that pass through Egypt, the country has
45,000 jobs are indirectly supported by the international and national links and reliable
industry. The Commonwealth Business connectivity to the rest of the world. In this
Council report further described the Egyptian way, Egypt has excellent components for an
Government strategy of raising ICT exports as emerging call center hub. http://www.itida.gov.eg
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6. What our patrons say Advertorial Client Testimonials
IBM Egypt
IBM's choice to establish a center in Egypt recognizes Egypt’s high-value services delivery, geographical location and the availability of a
skilled talent pool. These are key factors contribute to Egypt’s successful experience in this industry. We are pleased to partner with the
Egyptian government on focused projects that confirm Egypt’s competitiveness.
Eng. Amr Ghoneim
General Manager, IBM Egypt
Cisco
In considering locations, Cisco specifically chose Egypt because it has many unique advantages for a contact center destination. Additionally,
Egypt aligns with Cisco's focus to partner with emerging countries in order to create innovative and inclusive business models enabled by
technology.
Angel Mendez
Senior Vice President, Customer Value Chain Management, Cisco
Stream
Following the recent opening of our 1000-seat Cairo solutions center, we are seeing tremendous opportunity to offer a highly skilled,
technical workforce to support our growing global client base. We believe that Egypt is fast becoming the next ‘go-to’ location for offshore
services for both our North American and our European global accounts. We are thrilled to be working with ITIDA to ensure that we quickly
and effectively ramp up training and support efforts in Cairo for these clients.
Scott Murray
Chairman and CEO, Stream
Vodafone
I think (Egypt’s) geographical factor is important. I really do think of Egypt as right in the middle of the action. For the whole of the European
operations, it is just an easy option. And even when you have the complete opposite—like Australia and New Zealand—it is even better for us
because we run the UK during the day and in the same seats, we run Australia and New Zealand at night, so the efficiency of the building is
massive.
Both quality and quantity of available labor are very high. Purely on our product—call center services—you need to have a good education,
and be bi-lingual. The education system produces intelligent, well-grounded, and ambitious people to get jobs with companies like Vodafone.
Richard Daly
CEO, Vodafone
CBC Technologies
In our study, Egypt is rated as the most attractive outsourcing location in Africa for a number of reasons:
Egypt has an edge because Information and Communication Technology (ICT) is supported and believed in by the leadership and all actions
are coordinated.
The close coordination between different departments, especially the Information Technology Industry Development Agency (ITIDA) and the
General Authority for Investment and Free zones (GAFI), makes a real single window service for any industry coming into Egypt.
An additional strength is the serious and coordinated efforts that the government and other stakeholders are making to maintain a steady
supply of trained human resources. Egypt is first in the people and skills score in this study.
Vijay Amliwala
Managing Director, CBC Technologies
Global Services / www.globalservicesmedia.com
7. An abundant technically skilled and uniquely multilingual talent pool...
The sustainable low cost of doing business...
A reliable and scalable infrastructure supporting your business...
Substantial ongoing government investment and support...
A strategic, culturally rich and welcoming location at the crossroads
of Europe, Africa, and Asia...
These are the reasons why Egypt is an outstanding destination for
information technology and business process outsourcing.
To find out more, come and talk to us at the Egypt On stand.
egypton.com