Egypt has solidified its position as a global hub for technology and outsourcing. The Egyptian government's support has been instrumental in this achievement. Its consistent efforts have led the information and communications technology (ICT) sector to be the fastest-growing in Egypt for five consecutive years, generating around $6.5 billion in revenue in 2023.
During a visit to Dell Technologies's Center of Excellence (COE), Minister of Communications and Information Technology (MCIT) Amr Talaat emphasize ed the country's strategic advantages, including its competitive tech capabilities and skilled workforce.
Information Technology Industry Development Agency (ITIDA) CEO Ahmed El Zaher also noted that Dell Egypt's success in delivering the latest technological solutions to businesses and organizations demonstrates the nation's ability to foster a thriving environment for global delivery operations. ITIDA is MCIT's IT arm.
Government efforts foster tech innovation
In 2022, Egypt launched a five-year plan to create 215,000 jobs and triple its outsourcing export revenues. It aimed to attract international companies to expand sectors such as engineering, business process outsourcing (BPO), and IT services, targeting a $1 billion combined annual export value. By 2023, Egypt's digital exports grew by 26%, reaching $6.2 billion.
To attract more foreign investment, Egypt's government has implemented tax cuts and financial incentives while investing heavily in its digital infrastructure. In 2023 alone, 29 global companies invested in the country.
Additionally, the government has launched programs to equip young Egyptians with the skills needed in the tech and outsourcing sectors, further solidifying Egypt's role as a leading global outsourcing destination.
Egypt as a global outsourcing hub
Egypt is a leading offshoring hub offering customer service, IT support, digital marketing, human resource (HR) functions, and payroll. Kearney's Global Services Location Index 2023 ranks Egypt 23rd out of 78 outsourcing markets worldwide.
Egypt's outsourcing industry grew by 54.2% in the fiscal year 2022 to 2023, hitting $3.7 billion. Outsourcing service centers increased from 160 in 2022 to 199 in 2023, while companies offering outsourcing services rose from 148 to 185, demonstrating the sector's substantial expansion and continued growth potential.
El Zaher highlighted Egypt's unique blend of young, highly skilled talent, robust infrastructure, and beneficial government policies as key drivers that make the country a prime outsourcing location. Aside from Dell, international companies such as IBM and Siemens also capitalize on Egypt's talent pool.
Of 740,000 annual university graduates, 28% are science, technology, engineering, and mathematics (STEM) majors, while 30% to 40% are multilingual, fluent in English, Arabic, French, German, and Spanish. This linguistic diversity makes Egypt a top choice for companies requiring multilingual support.
Source: UnityCommunications
