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Top MEA country for outsourcing: Egypt 15 in Kearney’s Global Services Location Index

Maintaining its position as an attractive outsourcing operations hub, Egypt ranked 15th in the report, recording 5.62 percent in the index

By: Business Today Egypt

Tue, May. 25, 2021

Amid the acceleration of the government’s Digital Egypt initiative, Egypt snagged a spot in in Kearney’s Global Services Location Index 2021 as the only Middle East and African country in the top 20.

Maintaining its position as an attractive outsourcing operations hub, Egypt ranked 15th in the report, recording 5.62 percent in the index.

The GSLI report helps companies decide on the location of their offshore operations, as the index examines companies’ complex and shifting choices through an analysis of more than 60 countries.

The report themed “Toward a Global Network of Digital Hubs,” showed that Egypt was the only country in the MEA to make it to the top 20, with the UAE ranking 25th and Turkey 26th.

The report highlighted Egypt and the UAE as financially attractive locations with competitive infrastructure costs and strong entrepreneurial cultures.

It also emphasized the public sector’s willingness to make strategic investments, using the establishment of the Ericsson digital hub in Cairo for cognitive software for global markets.  

The index put Egypt before some European service locations such as Germany, Portugal, and Bulgaria, and competing against Poland (14th), Colombia (13th), and Estonia (12th).

The index analyzes 47 metrics across four main categories, including financial attractiveness (35 percent), people skills and availability (25 percent), business environment (25 percent), and digital resonance (15 percent), while the relative weights of each metric are based on their importance to the location decision that is derived from client experience and industry surveys.

“We are very excited to maintain our leading position in the global business services arena both regionally and globally that surely adds impetus to Egypt as an IT export destination, commented Information Technology Industry Development Agency (ITIDA) CEO Amr Mahfouz on the report.

He added that Egypt was praised for its multiple competitive advantages and the IT sector’s resilient performance.

For Egypt’s performance in these four categories, the country’s financial attractiveness attained 2.75, while India's stood at 2.83, the Philippines 2.82, and Indonesia 2.78.

On people skills, Egypt attained 1.05, followed by Indonesia 1.26, the Philippines 1.32, Turkey 1.41, and India 2.18.

In business environment, Egypt scored 1.15, followed by the Philippines 1.15, India 1.17, and Kenya 1.29.

Regarding digital resonance, Egypt attained 0.67, followed by Mexico 0.67, the Philippines 0.67, Vietnam 0.68, and Brazil 0.68. 

The report noted that Egypt is considered a unique location due to its financial attractiveness, offering competitive compensation and infrastructure costs. It also highlighted Egypt’s progress in developing the ICT sector.