With Rising Fuel Prices… Hybrid Work Reduces Costs and Maintains Egypt’s Competitiveness in Outsourcing
A number of workers in the information technology sector have called on outsourcing companies to expand the use of smart lighting and energy-efficient cooling technologies, especially with the recent fuel price increases approved by the government.
This would contribute to reducing their operating costs without incurring any additional economic burdens.
It is noted that the government recently announced an increase in the prices of all types of fuel by two Egyptian pounds.
Consequently, the selling price of a liter of diesel jumped from 13.5 to 15.5 pounds, gasoline 92 from 15.25 to 17.25 pounds, and gasoline 95 from 17 to 19 pounds.
Kato: Smart Lighting and Energy-Efficient Cooling Technologies Should Be Expanded
Rami Kato, Vice President of Customer Service at Telecom Egypt, stated that energy prices directly affect the operating costs of contact centers, especially as it is linked to the increased cost of electricity used in cooling operations and computer operation, as well as transportation expenses.
He pointed out that most companies in the sector base their contracts on a price equation that can be adjusted in the event of a change in the fuel item.
Kato explained that the cost of employee transportation to contact centers, especially those located in areas far from public transportation routes, will be high.
He noted that if the company is located near the public transportation network, the high inflation rate will affect the purchasing power of employees, inevitably requiring salary increases at a later time.
He emphasized the importance of reducing energy consumption by using modern mechanisms such as smart lighting and cooling technologies that do not rely on large amounts of electricity.
He also stressed the need to expand the implementation of work-from-home systems, as this will reduce operating costs and consequently lower transportation expenses.
Mahfouz: Limited Impact Not Exceeding 12%
Engineer Amr Mahfouz, CEO of Delta for Electronic Systems and former head of the Information Technology Industry Development Agency (ITIDA), said that the rise in energy prices may have some limited effects on the outsourcing sector.
However, there are practical measures that companies can take to mitigate this impact, most notably adopting a hybrid work system that allows for a reduction in the daily presence of employees in offices, thereby limiting energy consumption.
Mahfouz explained that this step not only contributes to reducing costs but also reflects the companies’ flexibility in dealing with economic variables and demonstrates their ability to adapt to global challenges.
He also pointed out that the total operating cost in Egypt remains within competitive limits compared to other markets, noting that the impact of rising energy prices on the operating cost in this sector does not exceed 10 to 12%, which is a percentage that does not represent a real obstacle to attracting investments and continuing growth in the outsourcing industry.
