DIGITAL EGYPT STRATEGY FOR OFFSHORING INDUSTRY 2022- 2026



Egypt has made great strides in its DX journey where ICT has become a salient feature and one of the key building blocks for development. This has fueled the local ICT sector growth being the fastest growing sector with 16% growth rate in 2021, and demonstrated resilience through COVID-19 pandemic. This has augmented Egypt’s global appeal for investors and encouraged more demand from global enterprises choosing Egypt as their reliable offshoring destination and business services hub.

Building on this momentum, the Ministry of Communications and Information Technology (MCIT) has launched “Digital Egypt Strategy for the Offshoring Industry 2022-2026” to propel the sector on a higher growth trajectory.

The new digital strategy is designed to achieve the following goals:

 
Triple the export revenue for Egypt from digitally-enabled offshoring services - with 19% CAGR (2022-2026).
 
Create and increase sustainable employment opportunities in the offshoring services industry with a focus on high-value services adding 215,000 jobs over the next five years.
 
Establish a recognizable brand name for Egypt in emerging digital services/technologies such as Artificial Intelligence, Data Advance Analytics and Embedded (SW and chipset design).

Committed to develop a strong, collaborative business environment to drive the next phase of growth in Egypt’s Offshoring Sector, ITIDA’s strategy focuses on developing and implementing two main pillars:

Ecosystem Development

 
Redesigned incentives to improve attractiveness and increase adoption
 
Enhanced engagement with existing investors as well as talent and support development of local companies
 
Evaluate commercial office space to support future growth

Talent Development by developing new and strengthening current upskilling programs:

 
Employability enhancement programs for student pool
 
Upskilling and reskilling programs for employed pool

And boosting talent development ecosystem:

 
Partnership /collaboration with academia and industry
 
Develop investment attractiveness for education players

Moreover, the strategy presents an overview of seven key segments targeted in 2022-2026 to contribute to the success of the strategic objectives:

 
Contact Centers
 
CADM
 
Embedded Software
 
Corporate Services
 
Testing
 
Vertical BFSI
 
Vertical Hi-tech

Finally, a new easy-to-administer incentive scheme is introduced in the strategy to attract foreign investors as well as empower local companies, encourage establishments of new businesses, support expansions of high-value technologies and creating more job opportunities for both men and women.

Download the Executive Summary of Egypt’s Offshore Sector Strategy 2022-2026 here.

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