What does the industry community say about the regulatory framework for outsourcing?
A number of officials and experts in the outsourcing services industry in Egypt agreed that the regulatory framework approved by the Telecommunications Regulatory Authority in cooperation with the Information Technology Industry Development Agency to regulate the work of companies in the local market is a good step that will prevent the entry of fictitious entities into the industry and ensure fair competition among all players.
Kato: Entities of Bir al-Salam are not allowed to enter..and India has a similar framework
Ramy Kato, an expert in the outsourcing services industry, said that setting a regulatory framework for the industry is a good step, especially since it defines the rights and duties of the investor and companies, and also regulates the use of VOIP technology, which was required by those working in the sector.
Kato explained that the past period witnessed a legislative vacuum regarding the use of VOIP technology in providing outsourcing services, which contributed to companies falling under the law.
He believed that the existence of controls for the industry would prevent the entry of non-serious entities or those below the ladder, as he put it, to compete with local players.
He stressed that the Telecom Regulatory Authority listened to the opinions of companies and succeeded in responding to the demands of their representatives to a very large extent, noting that India has a similar regulatory framework.
He considered that setting a regulatory framework for the industry is a good example of cooperation between companies, the agency and ITIDA, and it should be generalized in other sectors before issuing legislation or regulatory decisions to ensure the protection of the industry and the preservation of the state’s rights.
Danish: It should not be a bureaucratic burden on companies.
Dr. Adel Danish, the spiritual father of the outsourcing industry in Egypt, added that this step is beneficial, especially since it will support the representation of companies in the sector in international forums and obtain financial support for exporting their services.
Danish stressed that this regulatory framework should not represent a bureaucratic burden on companies, citing similar experiences in other countries that regulate the outsourcing services industry, such as NASCOM in India, IBPAP in the Philippines, and AMITI in Mexico. Although these entities are closer in their work and legal form to ITIDA and the Etisalat Association, the use of VOIP applications requires the intervention of the Telecommunications Regulatory Authority.
Official: Local companies will not be affected by license costs, subject to conditions
For his part, an official at a local outsourcing company who preferred not to be named said that licenses to establish and operate call centers are an important step in the Egyptian market to regulate the work of the industry and place everyone within a legal framework that guarantees rights and duties.
He added that local companies will not be affected by the license costs if their value is acceptable, as the presence of companies under a legal umbrella naturally protects them and helps them stabilize their businesses.
