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Yankee Group recently concluded a study, which places Egypt as the next hot spot in IT Outsourcing (ITO) and business process outsourcing. The report further states that Egyptian government has set a determined goal to attract $1.1 billion of the global outsourcing market by 2010.
Also, global giants like Cisco, Google, IBM, Microsoft, Oracle and Orange Business Services are already making use of Egypts IT talent pool.
The outsourcing market continues to grow, with India holding 60 percent of the global business. So more MNCs are using IT outsourcing as a tools to change their organizations into global operations.
But when it comes to Egypt, and before they could make a mark in Outsourcing arena, there are certain things according to the Yankee Group that needs scrutiny. There are number of problems pertaining to this that the Egyptian authorities should address.
Firstly, develop local infrastructure, and promote technical education. Secondly encourage companies to obtain appropriate training and certification. And finally develop a dedicated location or zone for IT companies and try to extract outsourcing work from the Mid-East market initially.
Egypt has all it takes to become a major hub for IT outsourcing in the Middle East,"said Tony Marson, Yankee Group senior analyst and report co-author. "In an anywhere environment, where time and place are immaterial, IT outsourcing will continue to grow strongly and generate revenue opportunity for those regions that successfully makes it. Egypt, government will now have to plan accordingly the development of IT industry in the country carefully in the next 5 years."
Yankee Group believes that Egypt can flourish in the IT outsourcing sector by learning from Indias mistakes. Based on its current efforts and plans, Egypt is on track to learn from Indian market.
Mindy Blodgett, Yankee Group analyst and report co-author, adds, "Anywhere enterprises interested in outsourcing are demanding options for locating the work in many regions and Egypt could become a favoured outsourcing location if they meet the many challenges thats ahead."
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