Ta3heed newsletter interviews EMEA Business, Tech Mahindra
Vikram Nair, President – EMEA Business, Tech Mahindra said, Egypt has talent pool to serve both global and local markets effectively.
He add, our strategically focusing on leveraging Egypt’s strengths in the IT outsourcing sector to drive economic growth, create jobs, and position the country as a key player in the global digital economy.
Tech Mahindra’s vision for Egypt
What is Tech Mahindra’s plan to expand in Egypt during 2024?
We recently established our first Global Delivery Center (GDC) in Cairo, Egypt, as part of our strategic expansion plans for 2024. This marks a significant milestone in our commitment to the Egyptian market and our vision for growth and innovation.
We aim to leverage Egypt’s rich talent pool to serve both global and local markets effectively. With the support of the Egyptian Ministry of Communications and Information Technology (MCIT) and the Information Technology Industry Development Agency (ITIDA), we plan to onboard more than 1,000 Egyptian talents over the next three years. These skilled professionals will play a pivotal role in delivering cutting-edge digital solutions to our global clientele across various sectors.
Tech Mahindra is committed to investing in the upskilling and reskilling of local Egyptian talent to meet the evolving demands of the digital economy. We plan to leverage new technologies, such as artificial intelligence, big data & analytics, and cloud, to empower our workforce to drive innovation, enhance productivity, and deliver value-added services to customers worldwide.
The expansion into Egypt reflects our strategic focus on driving digital innovation, fostering talent development, and contributing to the growth of local economies. We remain committed to building strong partnerships, creating employment opportunities, and making a positive impact in the communities where we operate. With the establishment of the new GDC in Cairo, we are well-poised to tap into Egypt’s enormous potential and continue delivering world-class IT solutions and services to clients worldwide.
Tech Mahindra’s plan
What is Tech Mahindra’s plan to contribute to achieving the government’s vision of reaching $9 billion in digital exports in 2026?
We are strategically focusing on leveraging Egypt’s strengths in the IT outsourcing sector to drive economic growth, create jobs, and position the country as a key player in the global digital economy. Egypt’s attractiveness as an IT outsourcing destination, stemming from its large pool of skilled and multilingual IT graduates, competitive cost structure, robust digital infrastructure, and strategic location, aligns perfectly with our vision.
Our investment in Egypt is in line with the goal to expand our global delivery centers and invest in upskilling and reskilling local talent. By establishing strategic partnerships, setting up offshore development centers, and diversifying revenue streams, we aim to expand our digital export footprint from Egypt. Collaborating with government agencies, we will develop specialized training programs to bridge the talent gap and ensure a skilled workforce capable of delivering high-quality digital services.
Furthermore, we will help Egypt lead in global technological innovation by embracing emerging technologies such as cloud computing, cybersecurity, big data analytics, and augmented reality. Integrating these technologies into our service offerings at our Global Delivery Center in Egypt will enable us to deliver value-added solutions that meet the evolving needs of our customers.
At Tech Mahindra, we prioritize quality assurance and compliance with international standards to build trust and credibility with our customers. This includes implementing robust quality management systems, adhering to industry-specific regulations, and obtaining relevant certifications, ensuring the delivery of high-quality and credible services from our GDC in Egypt to the global market.
How does the organisation see the future of the outsourcing services industry in Egypt, coinciding with the ongoing liberalization of the exchange rate?
We anticipate a promising future for Egypt’s outsourcing services industry, particularly considering the ongoing liberalization of the exchange rate. This significant economic shift presents new opportunities for growth and innovation within the industry, positioning Egypt as a competitive player on the global stage.
As the exchange rate becomes more liberalized, it enhances Egypt’s attractiveness to international customers seeking outsourcing services. The newfound flexibility in pricing and cost structures allows Egyptian outsourcing companies to offer more competitive rates without compromising on quality, thereby bolstering their appeal in the global marketplace.
Moreover, the liberalization of the exchange rate fosters a more favorable business environment, attracting foreign investment and stimulating the expansion of outsourcing services in Egypt. This trend not only drives economic growth but also promotes collaboration between Egyptian firms and global partners, further enhancing the industry’s prospects. We foresee continued growth and diversification within the outsourcing services industry as Egypt capitalizes on emerging opportunities in the global market.
What incentives does Tech Mahindra need from the Egyptian government to support its growth plans?
We believe that Egypt can further strengthen its position as a leading destination for IT outsourcing expo will drive economic growth, create sustainable employment opportunities, and promote Egypt’s global competitiveness in the IT outsourcing market.
To foster the growth of Egypt’s IT outsourcing export sector, we believe that strategic incentives from the government can play a pivotal role:
Ease of Transferring Capital: Ensuring the ease of transferring capital in and out by foreign currencies would provide greater flexibility for IT outsourcing firms to manage their financial operations. This would facilitate investment inflows into Egypt’s IT sector and support the growth and expansion plans of companies like Tech Mahindra.
Governed Customs Process: Implementing transparent and efficient customs processes governed by clear regulations would expedite the clearance of goods and reduce delays in importing and exporting IT equipment and services. This would improve supply chain efficiency and operational agility for IT outsourcing firms operating in Egypt.
ICT Components Import Facilitation: Facilitating the importation of ICT components by streamlining customs processes and reducing import tariffs would lower operational costs for IT outsourcing firms. This would enable companies like Tech Mahindra to access state-of-the-art technology and infrastructure, enhancing their competitiveness in the global market.
Export Promotion Incentives: Implementing export promotion incentives such as tax rebates or credits on IT outsourcing services exported from Egypt would enhance the competitiveness of Egyptian IT firms in the global market. These incentives would make Egyptian IT services more attractive to international customers, thereby stimulating export growth.
Marketing and Promotion Support: Partnering with the government to launch targeted marketing and promotional campaigns to showcase Egypt as a preferred destination for IT outsourcing services. This could include participating in international trade shows, organizing business delegations, and leveraging digital marketing strategies to reach potential customers globally.
Skill Development Initiatives: Collaborating with the government to develop specialized training programs aimed at enhancing the skills of the Egyptian workforce in areas such as software development, digital marketing, and customer support. A skilled workforce is crucial for delivering world-class IT outsourcing services and attracting foreign investment.
Streamlined Regulatory Framework: Establishing a streamlined regulatory framework specifically tailored to the IT outsourcing sector would create a conducive business environment for companies like Tech Mahindra. Clear and predictable regulations related to export procedures, taxation, and intellectual property rights protection would reduce bureaucratic hurdles and facilitate business expansion.
What are the aspects of the partnership between Tech Mahindra and ITIDA in qualifying human resources to work in the outsourcing services market?
The partnership between Tech Mahindra and ITIDA aims to build a robust talent pipeline, nurture a skilled workforce, and support the growth and competitiveness of Egypt’s outsourcing services market. Through these collaborative efforts, both organizations contribute to the development of a thriving IT ecosystem that drives economic growth and innovation in Egypt.
The partnership will help in qualifying Egyptian calibers to work in the global IT outsourcing services market through several key aspects:
Skills Development Programs: Collaboratively designing and implementing skills development programs tailored to the needs of the outsourcing services market. These programs may include training modules focused on technical skills such as software development, quality assurance, data analysis, and project management, as well as soft skills like communication, problem-solving, and customer service.
Capacity Building Initiatives: Launching capacity building initiatives aimed at enhancing the capabilities of Egyptian IT professionals to meet the evolving demands of the outsourcing industry. This could involve workshops, seminars, and hands-on training sessions conducted by industry experts from Tech Mahindra and other leading firms.
Certification and Accreditation: Working together to establish certification and accreditation frameworks for IT professionals in Egypt. These frameworks would help standardize skill levels, improve industry recognition, and enhance the employability of Egyptian talent in the global outsourcing market.
Internship and Apprenticeship Programs: Offering internship and apprenticeship programs to provide hands-on experience to aspiring IT professionals. These programs would allow participants to gain practical skills, exposure to industry best practices, and insights into the work culture of leading outsourcing companies like Tech Mahindra.
Industry-Academia Collaboration: Strengthening collaboration between industry and academia to bridge the gap between academic curriculum and industry requirements. This could involve curriculum development initiatives, guest lectures by industry experts, and joint research projects focused on emerging technologies and trends in the outsourcing services market.
Job Placement Support: Providing job placement support and career guidance to IT graduates through recruitment drives, job fairs, and networking events organized in collaboration with ITIDA. This would facilitate smoother transitions from education to employment and help address the talent shortage in the outsourcing industry.
How does Tech Mahindra view the Egyptian government’s direction towards issuing licenses to regulate the work of telecommunications service centers in Egypt?
Tech Mahindra views this as a positive step towards enhancing the quality and reliability of services in the telecommunications sector.By implementing licensing regulations, the government aims to standardize operating procedures, ensure compliance with industry standards, and safeguard consumer rights. By promoting quality, professionalism, consumer protection, market stability, and investor confidence, these regulations can contribute to the development and advancement of Egypt’s telecommunications industry.
What is the targeted growth in the organisation’s business volume locally in 2024?
With a focused approach on capturing a larger share of the outsourcing services market in Egypt, Tech Mahindra is poised to capitalize on the country’s thriving economy and burgeoning tech sector. We aim to leverage our expertise across diverse sectors including Telecom, Oil and Gas, BFSI, Energy and Utilities, and the Public Sector to offer high-value niche services to customers. As the outsourcing services market in Egypt is projected to grow by 10% annually until 2026, we aim to solidify our position as a key player in the industry and expand market presence.
