NEW YORK: Egypt continues to be a top outsourcing destination for many companies, especially here in the United States. Cheap labor, cheaper upkeep and a vast population coming online in recent years has positioned Cairo as “the place to be.” Egypt's information technology minister said the North African country is looking to increase its exports from its burgeoning outsourcing industry to $10 billion by 2020. That is good to hear, one top executive in New York told Bikya Masr on Friday. He believes that the Egyptian government's efforts to bolster the IT sector could be a move in the right direction in attracting foreign companies to take up shop in the North African nation. “Competition globally is really moving fast and with so many companies trying to get a foot in the door in so many places, Egypt is really turning into that destination that allows companies to think easier when outsourcing because Egypt has a growing infrastructure and it is a cheap place to live and send people,” said the executive, who asked not to be named. Egyptian Minister Tarek Kamel outlined the new initiatives at an investment conference being held in the Egyptian capital and revealed a glimpse of what is to come in the efforts to see revenue and diversification going forward. At the same time, Trade Minister Rachid Mohamed Rachid said his ministry is looking at attracting direct foreign investment of some $15 billion annually in the near future. “We need to be able to consolidate. We want to be able to improve management. We want to be able to modernize our base of production,” he told reporters. The government is optimistic on its outsourcing project, which has already seen large multi-national corporations take up residence in Cairo's Smart Village. The country's Information Technology Industry Development Agency (ITIDA) said that the expect outsourcing to continue to bolster the IT sector and make investment for foreign companies easier. With reported growth in IT last year at 11.3 percent and a number of major international corporations setting up shop in Egypt, the country remains one of the fastest growing destinations anywhere. In 2009, Sykes Enterprise and Stream Global Services made large investments in the country. The ministry of communications and information technology said that ITIDA has signed a Memorandum of Understanding with Intel Corporation to “further boost the potential of Egyptian information and communications technology (ICT) companies” via Intel's technical background and expertise. “We aim to improve Egypt's potential as an outsourcing destination to be able to compete with other locations on what we can offer, develop and have the ability to be the leading destination for these major IT firms,” said a spokesman from the ministry. The confidence comes on the back Kamel's statements in late March, where he said Egypt hopes to generate some $2 billion in revenue by 2013. The most recent statements show long-term goals for the country, which is likely to spur on investment, say observers. “The idea that Egypt wants to more than quadruple its IT sector in one decade is certainly going to get CEO's taking notice,” said Amr Ghazlan, an IT consultant with Microsoft in the United States. Investors here in New York have been keen on following Egypt's progress in the IT sector, saying it is one of the few places that have an established network and is still growing. Jordan White, a consultant for a number of Fortune 500 companies, told Bikya Masr that “through Egypt's governmental initiatives, it has created an attractive market that already has major positives, but at the same time companies see it as a place of even more potential growth. It really is a win-win for Egypt and foreign companies looking to invest.” BM
