Egypt Is Growing Rapidly Software IndustryMarwa Hassan
When you think of Egypt, the first thing that comes to mind is not a thriving IT industry. You imagine the great pyramids of Giza and a vast desert filled with Bedouin tents and camels. Although the desert covers 95% of Egypt’s land area, the remaining 5% is occupied by more than 100 million Egyptians. Egypt has heavily invested in its technology and information infrastructure as a developing country since 1985 in order to become the platform for the economy’s development and growth. This article will teach you about Egypt’s IT outsourcing industry and why you should outsource to Nile Bits.
Cairo and Alexandria, for example, have accumulated Smart cities and areas that have become working hubs for international tech companies. In addition, the Ministry is working to establish six technology parks in the cities of Minya, Menoufiya, Mansoura, Sohag, Qena, and Aswan. These parks will include hardware design labs, startup incubators and training institutions, as well as integrated systems for AI training, data science, and cybersecurity, with the goal of fostering entrepreneurship and innovation. Many major technology companies have relocated their headquarters to Egypt or have established outsourcing centers there. The Egyptian economy’s working force has become the IT industry, which is still expanding. IT exports are expected to reach 4,5 million US dollars by 2021.
Evolving into one of the fastest growing offshore destinations
Over the last two decades, the country has steadily built up its IT industry and IT economy, establishing itself as a service provider partner for the US and EMEA markets. According to the Information Technology Industry Development Agency (ITIDA), Egypt has a nearly 17% global BPO market share and is now considered one of the world’s fastest-growing offshore destinations. The country has grown into a high-quality service center. Egyptian IT sector is very robust, with a growth rate that exceeds Egypt’s GDP growth rate; it contributes 4% to the country’s GDP.
Low wages and many options
One of the reasons for Egypt’s IT success and why so many companies outsource to it is the low labor costs, which are lower than in most outsourcing countries. The average cost for a software developer for an outsourcing company ranges between $2.000 and $4.500, saving an outsourcing company up to 60% in labor costs when compared to other destinations.
Nonetheless, salaries in IT-related jobs in Egypt are relatively higher than in other jobs. As a result, many young people are thinking about majoring in technology, science, or engineering. Up to 50.000 students graduate in IT-related fields each year. The majority of those graduates are fluent in English, French, or German. The multilingual talent pool serves over 20 languages in over 100 countries. The government also invests in the development of a new generation of IT professionals through programs such as the Next Technology Leaders (NTL), the Technology Learning Initiative, and other collaborations with major technology companies such as Microsoft and Cisco. Another example is the Ministry of Communication and Information Technology’s (MCIT) initiative “Our Future is Digital,” which aims to train 100,000 young Egyptians and develop their IT skills in areas of high market demand, such as website design, data analysis, and digital marketing.
Strong workforce and low taxes
Another reason for Egypt’s IT success is its workforce of approximately 240.000 IT specialists who provide outsourcing services to approximately 100 countries worldwide. The IT Industry has also grown as a result of increased government support. The Egyptian government, in particular, has built several business parks, such as Smart villages, with the goal of simplifying the working process for companies by providing infrastructure and technical requirements. Companies will find it easier to establish outsourcing locations this way. Furthermore, Egypt provides corporate tax breaks to businesses.
The geographic proximity and small time zone difference, in addition to low costs and a constantly growing talent pool, speak for outsourcing in Egypt. Egypt is only two hours away from most European countries, so the work process will not be hampered by time differences, and it will provide business continuity with the United States and Asia.
Start your outsourcing process with us now
If you’re looking to outsource to Egypt, Nile Bits is a great place to start. We have been active in Egypt as a service provider since 2014, developing custom software solutions that are tailored to our customers’ needs. Since 2015, we have been providing Staff Augmentation services to our clients by providing IT specialists and tech talent who work remotely (distributed and remote teams).
If you want to learn more about Egypt and outsourcing opportunities, please contact us right away. Many of our clients have been with us for many years. We would be delighted to tell you more!