Egypt is seeing a surge in outsourcing as tech companies expand global delivery hubs

The Information Technology Industry Development Agency (ITIDA) saw an increase in the number of business services and IT jobs outsourced to the country.

The agency added that at least 19 global service providers and leading technology companies have announced their expansion plans in Egypt, and four new entrants have set up their offices and R&D centers in the second quarter (Q2) of this year alone.

Vodafone Intelligent Solutions (_VOIS) – a subsidiary of Vodafone Group and preferred partner for talent, technology and transformation – has inaugurated its new office in Alexandria, creating 1,000 new contact center jobs to serve Vodafone’s global customers in both German and English to use English.

The expansion announcement is not the first of its kind this year. Following the COVID-19 pandemic and the proven resilience of Egypt’s ICT sector, several major outsourcing players have already announced their expansion plans, including Webhelp, Sutherland, PWC, STMicroelectronics and many more.

“We are pleased that _VOIS is expanding its presence in Egypt with the new office in Alexandria – a city with many competitive advantages, untapped and abundant technical talent and multilingual capabilities,” commented ITIDA CEO Amr Mahfouz.

Geopolitical tensions in other service hubs have also increased Egypt’s global investor appeal and fueled greater demand from global companies that have chosen Egypt as a reliable offshoring destination and corporate services hub.

“The current geopolitical scene is working in Egypt’s favour, leading investors and global service providers to make the country an ideal, unparalleled offshoring destination and a global hub for the delivery of digital services to the EMEA region,” Mahfouz said.

He also encouraged multinationals to invest in Tier 2 cities, where numerous opportunities and talent are accessible at competitive costs.

The inauguration of the new office complements the common path of productive cooperation and constructive partnership between ITIDA and _VOIS.

“Cooperating with _VOIS is one of our outstanding achievements in attracting and promoting foreign investment in the IT offshoring business and in the IT sector as a whole,” Mahfouz added.

Egypt has become more attractive to investors since the government introduced a new incentive scheme for foreign investments in light of the Digital Egypt Strategy 2022-2026 for the offshoring industry. The ambitious strategy, spearheaded by ITIDA, is propelling the sector onto a higher growth trajectory.

According to the Egyptian Ministry of Communications and Information Technology, the local ICT sector has achieved the highest growth rate of about 16.3% among the various government sectors in the 2021/22 financial year. Egypt’s digital exports also reached $4.9 billion over the same period.

In addition, Mahfouz welcomed the multilingual skills and abilities of Egyptian youth working in the outsourcing sector. Noting that current demand certainly outstrips supply, he added that one of ITIDA’s strategic goals is to invest in digital and soft skills development and create a talent pool capable of expanding the knowledge-based build economy.

_VOIS Egypt office serves 14 markets around the world. The company invests EGP 3 billion annually and exports services worth €145 million. In five years, _VOIS aims to bring in EGP 18 billion and increase the value of its business in Egypt to €1 billion.

Additionally, the company is aiming to increase the size of its team in its Cairo and Alexandria offices from 8,600 to over 10,000 people, making it the second largest in terms of headcount across __VOIS’ locations in Egypt, India, Hungary and Romania .

The opening of _VOIS’ new office confirms Egypt as an attractive investment destination for multinationals such as Vodafone, which is looking to expand its global delivery business in the country.

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