Egypt’s outsourcing sector grows by 54.2% in FY23
CAIRO, EGYPT — Egypt’s outsourcing services sector has experienced a significant boom in the fiscal year 2022-2023, recording a 54.2% growth rate.
According to a report by the Information and Decision Support Center (IDSC) reviewed by Prime Minister Mostafa Madbouly, the added value of this sector surged to approximately $3.7 billion, up from $2.4 billion in the previous fiscal year.
Record-breaking expansion in IT exports
The country’s information technology (IT) sector also witnessed a remarkable surge, achieving a 26.5% increase to $6.2 billion during FY23 compared to $4.9 billion in the previous fiscal year.
Egypt’s IT sector’s added value also saw substantial growth, climbing to EGP 275.5 billion ($5.73 billion) in FY23 from EGP 209.5 billion ($4.35 billion) in FY22, marking a 31.5% increase.
This growth underscores the sector’s expanding role in the national economy and its potential for future development.
Expansion of outsourcing centers and companies
Egypt has also substantially increased the number of outsourcing service centers to support its vision of becoming a global outsourcing hub.
The count reached 199 in FY23, up from 160 in the previous year, reflecting a growth of 24.4%. Additionally, the number of companies operating in the outsourcing field rose from 148 to 185, marking a 25% increase.
Government and private sector investments
The Egyptian government has demonstrated a strong commitment to the IT sector, with increased investments allocated to communications and information technology.
For FY 2023-2024, the investment allocation has reached EGP 83.3 billion ($1.73 billion), up from about EGP 56 billion ($1.16 billion) in the previous fiscal year, a remarkable growth rate of 48.8%.
Notably, the private sector has played a leading role, contributing over 63% of the total investments.
Strategic agreements and future plans
Since November 2022, Egypt has signed 74 agreements with international and local companies to bolster its status as a global outsourcing hub. These agreements aim to establish 85 outsourcing centers and employ 60,000 specialists.
The country’s Digital Egypt Strategy for Offshoring Industry 2022-2026 aims to triple digital export revenues with a compound annual growth rate of 19% during this period.
Egypt’s path to becoming a global outsourcing leader
Egypt’s outsourcing services sector is on a strong growth trajectory, driven by significant increases in the number of centers and companies, as well as substantial investments from both the government and private sector.
With strategic agreements and a clear vision outlined in the Digital Egypt Strategy for Offshoring Industry 2022-2026, Egypt is well-positioned to become a leading global hub for outsourcing services.
