CEO: Concentrix invests between $80 and $100 million annually in Egypt.

Concentrix, a leading outsourcing services provider, plans to expand into Ghana and Saudi Arabia in 2023 and double its workforce in Egypt to 12,000 by the end of the year.

Amr Sobhy, the company’s CEO, stated that Concentrix began operations in the Egyptian market in 2008 with approximately 200 employees.

The company currently has a total workforce of around 8,500 employees and plans to increase this number to 12,000 within the next year to accommodate the growing volume of business.

Sobhy further explained that Concentrix invests between $80 and $100 million annually in the Egyptian market.
He emphasized that Egypt is a top priority for the company’s global expansion strategy and is witnessing significant growth in the provision of cross-border services.

Sobhy added that Concentrix provides call center services to its clients through 7 centers across Egypt.

These centers include four in Cairo with a total capacity of 3,400 seats, two of which are located in Smart Village. Additionally, there is another center in the prestigious Sixth of October district with a capacity of approximately 1,000 seats, and a third in the Maadi Technology Park with a capacity of 1,000 seats.

He continued, “We have another center in Hurghada with a capacity of 250 seats. The company also opened a new center in Alexandria in the first quarter of 2022 with a capacity of 450 seats, and plans to add another 450 seats this year.”

Sobhy added that his company is currently studying the implementation of a business model tailored to local Egyptian companies, targeting government and private entities in Egypt.

He noted that the new model aims to attract Egyptian companies and provide them with outsourcing services at a competitive price.

Sobhy also pointed out that Concentrix operates in 40 countries around the world with a workforce of 280,000 employees. He explained that the company’s business model is based on providing cross-border outsourcing services at a competitive price and with high efficiency.

In a related context, Sobhy expressed his belief that Egypt possesses numerous advantages that position it as a regional hub for exporting outsourcing services to foreign markets.

He attributed this to Egypt’s wealth of human capital capable of providing services in multiple languages, as well as the availability of skilled employees with the interpersonal skills necessary to serve clients around the world.

Sobhy further elaborated that Egypt’s strategic location makes it well-suited to attract numerous global companies and entities for outsourcing services. Additionally, outsourcing companies receive various forms of support from ITIDA to facilitate the export of their cross-border services.

He stated that Egypt has a significant opportunity to double its business volume in this field in the coming period.

Sobhy estimated that the number of employees in the outsourcing services sector in Egypt is around 50,000.
He stressed the need to develop the skills of university students and teach specialized outsourcing curricula, in addition to raising awareness about the sector among students.

Sobhy noted that Concentrix was able to weather the COVID-19 pandemic by adopting a remote work plan for its employees. He stated that 98% of the company’s business volume remained unaffected.

Sobhy added that the company experiences annual growth in its business volume of around 40%.

He stated that Concentrix does not require employees to have a specific degree to work on its team, but rather only proficiency in the required languages.

Sobhy further elaborated that Concentrix has a workforce of approximately 300 employees from diverse nationalities who do not necessarily hold higher education degrees.

He explained that the company employs different selection criteria, including the employee’s proficiency in the required languages and their performance in the personal interview.

Sobhy further pointed out that Concentrix employs individuals from 26 different nationalities.

He elaborated that the company has employees from Algeria, Morocco, Congo, Tunisia, Russia, Lithuania, and Germany, adding that Concentrix does not impose any age restrictions on its employees.

Sobhy revealed that Concentrix is in negotiations with a local outsourcing company with the aim of acquiring it and adding it to the company’s portfolio.

He stated that the purpose of the acquisition is to leverage the company’s expertise to serve the new business model for serving Egyptian companies.

Sobhy expects the negotiations to be finalized during the first half of next year.

He further added that his company recently opened a branch in South Africa to expand its service offerings to neighboring markets. He mentioned that the company is also preparing to open a new branch in Ghana before the end of this year.

Sobhy emphasized that South Africa possesses several factors that made it a target for Concentrix’s expansion plans, including the availability of the necessary infrastructure and the fluency of employees in English, which aligns well with the company’s European clientele.

he noted that there is significant interest from clients in Concentrix opening a branch in South Africa, due to its promising attributes and strategic geographical location that enables it to serve European countries.

Sobhy elaborated that Concentrix currently has a customer base of approximately 57 clients, with a majority operating in the tourism sector.

He projects that the total number of clients will reach 75 by the end of next year.

He emphasized that Concentrix is currently evaluating the potential to open branches in various countries, including Saudi Arabia, Morocco, and Jordan, as well as in certain African markets.

He explained that this expansion strategy aims to tap into new markets and accommodate the company’s growing customer base.

In February 2022, Dr. Amr Talaat, Minister of Communications and Information Technology, launched the Digital Egypt Strategy for the Offshoring Industry (2022-2026). This comprehensive strategy aims to achieve several key objectives:

Tripling Egypt’s exports of cross-border information technology (IT) products and services: This ambitious goal seeks to significantly expand Egypt’s IT outsourcing sector, positioning it as a major player in the global market.

Introducing a comprehensive package of incentives to attract investments: By providing attractive incentives, the strategy aims to encourage foreign and local companies to invest in Egypt’s IT outsourcing sector, fostering a vibrant and competitive business environment.

Enhancing Egypt’s competitiveness in research and development (R&D) and value-added services (VAS): By promoting R&D and VAS, the strategy seeks to elevate Egypt’s position in the global IT landscape, positioning it as a hub for innovation and high-value services.

Accelerating the growth of the knowledge economy: By fostering a thriving IT outsourcing sector, the strategy aims to drive the growth of the knowledge economy in Egypt, creating employment opportunities and contributing to overall economic development.

The Digital Egypt Strategy for the Offshoring Industry represents a significant step forward in Egypt’s efforts to establish itself as a leading IT outsourcing destination. By implementing this strategy, the government aims to create a conducive environment for the sector to flourish, attracting investments, generating jobs, and contributing to the country’s economic growth.