Did Outsourcing Companies Meet Their Targets in the First Half of 2025?
Some workers in the outsourcing services industry believe that companies in the Egyptian market achieved a record performance in business growth during the first half of this year.
This was supported by the devaluation of the Egyptian pound and the relative decline of India and the Philippines on the global outsourcing map.
Reihan: Sutherland’s Business in Egypt Grew by 25-30%
Ahmed Reihan, Senior Director for the Middle East and Africa at the global company Sutherland, revealed that the company’s business volume in Egypt grew by 25% to 30% in the first half of this year compared to the same period in 2024.
Reihan attributed this growth to the devaluation of the Egyptian pound against the dollar, as well as the proficiency of Egyptian youth in multiple foreign languages.
He also cited the relative decline of India and the Philippines on the global outsourcing industry map.
He noted that the three most popular sectors for contracts during the first six months of 2025 were retail, travel and tourism, and technology.
Reihan said that global companies, especially from Europe and America, are currently facing difficulty in outsourcing some of their operations to Indian entities due to dialect issues.
Meanwhile, the Philippines has been suffering from an increase in natural disasters such as volcanoes, floods, and earthquakes.
He added that the Philippines used to grant tax benefits to foreign companies wanting to open branches, but these facilities expired in January 2024, leading to an increase in the cost of outsourcing services there.
He also pointed out the emergence of other rising powers that are now strongly competing with Egypt in the regional outsourcing industry, primarily Kenya, South Africa, and to some extent, Morocco.
Challenges and Missed Targets: A Different Perspective
A source from a global outsourcing company stated that most international firms were unable to meet their targets during the first half of this year.
This is due to several reasons, most notably that the industry is still seen as a temporary job opportunity for a large segment of Egyptian youth, rather than a long-term career.
They often use it as a stepping stone to enter the job market or while waiting for another opportunity.
According to the source, this trend forces companies to hire new employees frequently, which leads to short training periods and a significant investment in employee development.
This financial burden affects the achievement of short-term investment goals.
Furthermore, the source added that the decline in the dollar’s value has led to a decrease in the companies’ hard currency revenues.
At the same time, the minimum wage was raised, and the costs of utilities like electricity and transportation increased.
The source concluded that local companies, or those that focus on providing services to local clients, face numerous challenges but are making acceptable progress, achieving profits of between 8% to 10% in the first half of the year.
