Egypt relies Knocking on doors  policy to develop outsourcing industry

The government is working to encourage investment and promote outsourcing services internationally as an important source of dollars, based on the door-to-door policy.

Danish: The necessity of forming partnerships with international companies to exchange expertise

Dr. Adel Danish, former Chairman of the Board of Directors of Xceed, stressed that Egypt must follow a set of strategies to promote outsourcing services internationally, represented by participating in international conferences and exhibitions, which helps in building relationships with international companies and introducing the advantages of investing in Egypt.

Danish touched on the importance of cooperation with international promotion and investment agencies to highlight Egypt as a preferred destination for outsourcing services.

Especially since these entities can provide support in organizing promotional campaigns and establishing strategic partnerships, in addition to launching digital marketing campaigns by using social media and digital platforms to publish promotional content targeting global companies through video clips, articles, and case studies that illustrate the success stories of companies that have invested in Egypt.

He also believed that local companies should be encouraged to form partnerships with their major global counterparts in the field of outsourcing to exchange expertise and technology, and enhance Egypt’s position as a global center for industry.

He cited a number of the most popular international conferences in the industry that Egypt can benefit from, most notably the Gartner IT Symposium/Xpo, which brings together IT leaders to discuss the latest trends and challenges in the industry, in addition to the Outsourcing World Summit, organized by the International Association of Outsourcing Professionals (IAOP), which is one of the most prominent conferences that focus on outsourcing strategies and best practices.

And Shared Services & Outsourcing Week (SSOW) which is held at various locations and brings together industry leaders to discuss innovations in outsourcing services and participate in interactive workshops.

Alongside Customer Contact Week (CCW), this conference focuses on improving customer experience through contact centers and outsourcing services, and brings together industry experts to share ideas and innovations, considering that attending these international forums can provide valuable opportunities to network with global companies and learn about the latest trends and technologies in the outsourcing field.

Mahfouz: Knocking on doors should not be the only means

For his part, Eng. Amr Mahfouz, former CEO of the Information Technology Industry Development Authority (ITIDA), said that knocking on doors to attract global outsourcing companies and urging them to be present in Egypt and promoting Egypt as a preferred destination in the industry should not be the only means.

Rather, it should be part of a larger plan, such that travel to the target markets is a complementary part of a larger targeting plan and responding to all questions and inquiries related to the local market. These matters are important and will facilitate attracting global companies and clarifying the complete picture for them.

Mahfouz added that the focus on added value, exporting technological products, and alliances with foreign entities in this regard will encourage global companies to be present locally and sell their software packages from Egyptian lands.

Hamza: Tech startups in Europe and America should be targeted…and tax and customs incentives should be provided to global entities

Dr. Karim Hamza, an expert in the outsourcing services industry in Egypt, said that the government and local companies should adopt a proactive approach in communicating with global companies to keep up with the increasing demand for outsourcing services through various methods, including organizing international conferences and exhibitions in Cairo and major cities to promote Egypt’s capabilities in the outsourcing sector, in addition to the need to form alliances and partnerships with global IT outsourcing organizations, which will enable Egypt to identify the needs of global entities and enhance investment opportunities.

Hamza stressed the importance of targeting emerging companies in the technology sector in countries such as America and Europe that are looking to reduce their costs and increase their efficiency through outsourcing services, considering that Egypt has all the necessary components to become a global leader in the field of IT outsourcing. However, to achieve this, it is necessary to continue improving the digital infrastructure, provide attractive investment incentives, and develop human capital to meet the needs of global companies.

Hamza believes that the IT outsourcing services industry in Egypt faces several challenges that must be addressed to ensure sustainable success, such as information security and privacy issues, which are among the most important concerns for global companies. Therefore, the cyber infrastructure must be strengthened, and strong legislation must be put in place to protect data, in addition to the need to reduce bureaucracy and multiple administrative procedures, as they are an obstacle for foreign companies. Therefore, the business environment must be improved through government reforms that enhance the chances of attracting their investments to Egypt.

He stressed that Egypt faces strong competition from several countries in the industry, and in order to maintain its position at the top of the list of attractive destinations for investments, it must focus on developing the skills of local cadres and investing in modern technology.

He continued: To attract foreign companies to invest in this sector, the Egyptian government and companies can adopt several effective strategies, including improving the technological infrastructure, which is essential to enable companies to provide high-quality services, in addition to the importance of improving the Internet network and enhancing data security, which contributes to reassuring global companies and making Egypt an attractive environment for investment.

He also called on the government to provide tax and customs incentives to foreign companies that choose Egypt as an outsourcing destination, provided that these facilities include tax reductions on profits and customs exemptions on imported technological equipment, which contributes to reducing costs and increasing investment attraction.

He pointed out that a trained workforce is one of the most important elements for attracting global companies, so Egypt must focus on enhancing technical skills through specialized educational programs, increasing investments in vocational education, and training young people in modern technological skills such as artificial intelligence and big data analytics.

He called for communicating with global companies and establishing strategic partnerships with players in the outsourcing industry, such as the Information and Communications Technology Industry Association and the Information Technology Industry Development Agency, in order to market Egypt as a globally competitive destination.