(MENAFN- Daily News Egypt)
Egypt's digital exports jumped to $6.2bn in fiscal year (FY) 2022/23, up from $4.9bn the previous year, according to a report on the country's outsourcing industry.
This growth highlights Egypt's increasing prominence as a hub for information technology (IT) and outsourcing services.
The report, prepared by Osama El Gohary, Assistant to the Prime Minister and Head of Cabinet's Information and Decision Support Centre (IDSC), attributes Egypt's attractiveness to several factors.
These include a young and skilled workforce with strong digital and language abilities, a supportive infrastructure for the outsourcing industry, and competitive advantages offered by the government.
These factors have positioned Egypt as a targeted market for outsourcing companies.
The report also indicated that the added value of Egypt's IT sector reached EGP 275.5bn in FY 2022/23, a 31.5% increase compared to the previous year's EGP 209.5bn.
The Information Technology Authority (ITA) collaborated with the German Outsourcing Association to launch the“Egypt Guide to Outsourcing Services,” showcasing the country's capabilities and competitive edge as an investment destination.
Furthermore, the report highlights the Egyptian government's efforts to create a favourable environment for outsourcing. This includes clear laws and regulations designed to protect both service providers and clients, along with measures to support the IT industry and streamline procedures.
The outsourcing industry is a cornerstone of the Ministry of Communications and Information Technology's strategy. This strategy focuses on expanding into foreign markets, systematic development of the industry, increasing digital exports, enhancing global competitiveness, and supporting digital transformation initiatives.
Egypt's Digital Egypt Outsourcing Industry Strategy (2022-2026) aims to solidify the country's position as a major business destination and global hub for outsourcing services.
The strategy seeks to attract leading global outsourcing companies to invest in Egypt, boost digital exports, and create job opportunities for young people within the digital economy.
Launched in February 2022, the strategy is built on three key objectives. The first objective is to triple Egypt's digital export revenues through a 19% compound annual growth rate between 2022 and 2026.
Secondly, the strategy aims to create sustainable and well-paying jobs in the outsourcing industry, focusing on high-value-added services. The target is to create 215,000 new jobs in the sector.
Finally, the strategy seeks to establish Egypt as a recognized brand in new and emerging digital services and technologies like artificial intelligence and advanced analytics.
The report confirms that the value of Egypt's digital exports reached $6.2bn in FY 2022/23, reflecting a 26.5% increase compared to the prior year.
This growth is attributed to the government's initiatives to promote and support the outsourcing industry. Egypt's digital exports encompass a wide range of services, including human resources, call centres, software development, technical support, and design services.
The report further reveals that the growth rate of Egypt's outsourcing services sector reached 54.2% in FY 2022/23, reaching $3.7bn compared to $2.4bn the previous year. The country has set a target of $9bn in digital exports by 2026.
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