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Outsourcing to Africa: The New Hub for Business Growth

Discover why African countries are the emerging outsourcing destination with skilled, multi-lingual, and cost-effective talent pool. Egypt, a rising star in the BPO industry, offers incentives and abundant talent for outsourcing success.

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Outsourcing to Africa: The New Hub for Business Growth

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  1. Outsourcing to AFRICA

  2. Africa|the new outsourcing hub • Acknowledged by economists worldwide as the next big growth opportunity – African countries have stepped up their efforts to grow the BPO industry. • Africa can become an important hub in the global outsourcing space due to time zone proximity to Europe. • BPO market growth was estimated at a healthy rate of 12% in 2013. This provided an opportunity for countries having limited technical workforce but large population with English and multilingual skills. • Outsourcing will help alleviate poverty in Africa and South Africa. • South Africa, Egypt, Morocco, and Ghana are already home to numerous outsourced operations from developed world.

  3. Africa|the new outsourcing hub

  4. Africa|the new outsourcing hub

  5. Africa|outsourcing challenges • Countries in the region are grappling with challenges of high cost of: • ICT infrastructure, • Technical skill gap, • Lack of entrepreneurial and innovation friendly economic climate. • BPO industry should now capitalize on adding to the high end value chain, especially the: • financial services, • Health, • and legal sectors.

  6. Why Egypt Egypt “ A case study for Africa” Egypt provides unique advantages as an offshoring location for IT and Business Process Outsourcing

  7. egypt|outsourcing experience • Egypt is one of the fastest growing outsourcing locations in the ICT industry. • Over the past 15 years, Egypt has built a growing reputation as a centre for export-oriented ICT services, particularly business and knowledge process outsourcing (BPO and KPO), with revenues that exceeded $1.1bn in 2011, according to a Ministry of Communications and Information Technology (MCIT) presentation last year • With more than 8.29 million internet users and around 395,000 broadband connections in early 2008, Egypt expects to increase its capacity exponentially. • The Egyptian government provides various packages of incentives and subsidies, especially in the ICT sector in order to support the industry.

  8. Abundant & Multi-lingual Talent Supply Working pool of 23.8 million out of which 49% working in services sectors. 4 Nobel prize winners; 2 for peace, chemistry and literature. Quick facts about Egypt’s talent pool High cultural affinity to the US and Europe due to political history and tourism. 3rd largest English speaking country in O&O industry 60,000 professionals are working in the BPO-ITO sector out of which 30 000 are working on offshore accounts Prominent graduates from Egyptian universities include Mohamed El Baradei, Queen Rania, Naguib Mahfouz, Omar El Sherif, and Ahmed Zewail January 25th revolution was initiated by Egyptian youth using technology.

  9. Abundant & Multi-lingual Talent Supply • Minimum requirement for most of call center occupations is a college degree • Egypt’s labor pool is ample and educated, 300,000+university graduate per year with 30,000 qualified to work for offshore contact center jobs • Call center jobs are positively perceived • The full HR spectrum is available, mid management, higher management as well as support positions

  10. Abundant & Multi-lingual Talent Supply 83% of annual graduates are suitable pool for outsourcing industry University graduates studying in English are more than 70% of international languages

  11. Conducive Business Environment • 3 hours flights from target regions in the Middle East • 4 to 5 hours flight time to major European cities (Paris, Frankfurt, London, Madrid) • 6 hours flight time from India

  12. Government Support ITIDA – Information Technology Industry Development Agency • Executive IT arm of the Ministry of Communications and IT with a public-private partnership model. • Guides and promotes investments in the BPO/ITO sector • Supports and fosters development of BPO/ITO industry in Egypt • Supports R&D in the ICT sector and implements its output • Provide strong connections with industry and ecosystem.

  13. Egypt Amongst The Top Outsourcing Destinations Egypt ranks n°10 out of the top 40 outsourcing destinations across the World, with main competitors in Asia maintaining their leadership (India, China, Malaysia, Philippines) - Egypt is the N°1 offshore destination for Global English outside Asia - N°1 destination for Arabic Egypt outranks all Eastern European locations, due to a combination of skilled and available labor, with a strong financial attractiveness

  14. Cairo At A Glance • Time zone: GMT+2 • 6 hours flight from main European capitals • 1 international airport with direct flights to Europe, Asia, and America (Cairo International airport) • Top 50 busiest airports in the World with 15 million passengers per year • Ranked 4th best airport in Africa the 2014 World Airport awards • Population : 17 million (16th largest in the World and 2nd in Africa) • Median age : 25 year • Unemployment rate : 13.4% • N°1 most powerful city in the MENA region in the 2014 by the Mori Memorial Foundation in Tokyo • Ranked 49th biggest and most interconnected city in the World in the A.T. Kearney Global Cities Index 2014 • % of Bachelor, Graduate and Professional degree: 40% • % High-School degree: 65% • Over 140 000 students (40% of country graduates) • 2 universities in top 400 universities worldwide in engineering and management (including American University of Cairo)

  15. Cairo Contact Center Park Egypt’s first specialized investment zone, is a collaborative project between several governmental bodies including the Ministry of Communications and Information Technology (MCIT), the Ministry of Investment and Cairo Governorate. The park is being developed to capture the growth potential of the Contact Center industry through creating a dynamic community that will enable local and international players to operate globally.

  16. Cairo Contact Center Park Egypt has dedicated BPO/ITO parks with a capacity of 125,000 employees • BPO/ITO delivery park built over 2 million sq. ft. of prime real estate in the center of Cairo. • Cutting edge technology for BPO business • Standalone power and connectivity redundancy plan • High availability and connectivity to metro network • Maadi is considered the main hub for foreigners resident in Egypt Cairo Contact Center Park

  17. Facts and Figures • In 2012, ITIDA assumed the responsibility of supervising Maadi that includes managing the whole process of rebranding the park, providing guidance and support, and preparing incentives package that aims at attracting investors to set up and develop their business in the park. • The work is going on in full swing to deliver 8 buildings by early 2014 that will provide about 8,000 direct job opportunities, and 19,000 indirect job opportunities. • It is planned to complete the investment phases and finalize establishing 27 new buildings to reach a total of 38 buildings, according to the set plan to get the park working with full capacity in 2017. • This investment zone is arranged to provide, once its phases are completed, 40,000 direct job opportunities, in addition to 100,000 indirect job opportunities.

  18. Proposal:Aficta Outsourcing Initiative-2015 “Creating 1,000,000 jobs in the outsourcing industry across Africa before 2020” Thank you

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