Global outsourcing giant Concentrix will invest USD 1 bn over the next four years to expand its operations in Egypt under an MoU inked with the Information Technology Industry Development Agency (ITIDA), according to a cabinet statement. The four-year plan will see the company create 16k jobs and increase its total workforce to 35k employees by 2028.
Concentrix will also open up shop in Mansoura under the plan, in addition to its 11 currently operating centres across Cairo, Giza, Alexandria, and Hurghada that it has built up since it began operations in the country in 2009. At present, its services are offered in 12 languages and cover sectors from e-commerce to tourism and from healthcare to transportation.
Also in the cards are call centers using voice over internet protocol — known in the industry as VoIP — which the American multinational was granted a license for in November. The other companies that received licenses were Vodafone International Services, Raya CX, Telecom Egypt's Xceed, Capgemini Egypt, Genpact Egypt, and TTEC.
What they said: "Expanding our operations here is a strategic move that reflects our confidence in Egypt as a rising global business hub. This expansion, which includes an investment of USD 1 bn dollars over the next four years, also underscores our commitment to developing local talent, growing our presence worldwide, and cementing Egypt's role as a key player in the global outsourcing market," Concentrix CEO Chris Caldwell said.
This isn't the only big-ticket outsourcing project we've heard about in the last few months, with Madrid-based business process outsourcing (BPO) firm Konecta setting up a regional HQ here as part of a USD 100 mn three-year investment plan, Foundever upping its investment to EUR 65 mn and hiring an additional 4k Egyptians, and Deloitte launching its new innovation hub in Cairo and pledging a three-year USD 30 mn investment to employ 5k of the country's "top-tier talent."
Remember, the government wants to see digital exports bring in USD 9 bn into the economy annually as of 2026 and then up to USD 13 bn by 2030. We're yet to hear the most recent figures for 2024, but Egypt's digital exports brought in USD 6.2 bn in 2023, up 26.5% y-o-y from 2022. The figure includes outsourcing exports — think call centers and human resource centers — which accounted for over half of the digital exports in 2023, standing at USD 3.7 bn, up 54% y-o-y.
Sources: Enterprise
