Egypt expands IT outsourcing beyond Cairo
CAIRO, EGYPT — In a strategic move, Egypt’s Information Technology Industry Development Agency (ITIDA) is highlighting the potential of outsourcing in tier-2 cities and showcasing advantages for IT firms to set up operations beyond Cairo.
As leading tech companies expand into Egypt’s secondary cities like Assiut, ITIDA is tapping into the talent pool and operational cost savings these regions offer.
“The availability of skilled youth, coupled with a low cost of operations, makes these governorates attractive for global and local tech investments,” said ITIDA CEO Ahmed ElZaher.
The government is actively supporting the sector’s nationwide expansion. Initiatives include building technology parks in tier-2 cities and improving infrastructure to strengthen Egypt’s position as a major global provider of outsourcing services.
Recent partnerships also aim to develop skills and fuel growth. ITIDA recently signed Memorandums of Understanding (MOU) with Brightskies, a local digital transformation enabler and market leader, and Swift-Act, an embedded software solutions company, to train over 200 locals in Assiut on software development and embedded systems, with at least 150 targeted for IT sector jobs.
ElZaher also noted increasing demand from tech firms to establish or expand delivery centers across Upper Egypt, leveraging the engineering talent pool. He added that they aim to create new job opportunities and strengthen Egypt’s position as a reliable global hub.
The ICT industry is Egypt’s highest-growing sector for the last five years after posting a 16.3% growth between 2022 and 2023. Meanwhile, its digital exports reached $6.2 billion in 2023, up 26% from $4.9 billion in 2022.
Since the launch of ITIDA’s Digital Egypt Strategy for the Offshoring Industry 2022- 2026 in February 2022, the organization has signed 74 agreements with local and international companies in the outsourcing industry.
These agreements focus on expanding offshoring centers, inaugurating new ones in Egypt, and hiring 60,000 employees throughout these agreements.
