Egypt is increasingly positioning itself as one of the most competitive destinations for global outsourcing, with revenues projected to reach almost $700 million by 2030 and the number of industry workers expected to rise from 150,000 to 220,000 in the next five years.
These gains are the result of a national strategy aimed at building the infrastructure, skills, and market credibility necessary to attract international businesses. The momentum is drawing attention from multinational companies seeking more resilient and geographically diversified talent.
Global companies find the country’s talent not only abundant but also highly cost-efficient, contributing to rising interest in shifting work to Egypt. According to the Central Agency for Public Mobilisation and Statistics (CAPMAS) 60 per cent of Egypt’s population are young people.
Egypt’s recent progress is primarily due to its human capital, Khaled Sherif, a telecoms and IT expert, told Al-Ahram Weekly. Growth has been strongest in software development, technical support, and contact centre operations, he added.
Globally, outsourcing has expanded as companies seek to reduce expenses and streamline operations by contracting specialised providers. Technology and digital communication tools have enabled organisations to offload functions seamlessly to markets offering lower costs and strong capabilities.
“Software and programme design will see the biggest opportunities in outsourcing,” Sherif said.
He said Jordan is a key regional rival in software, and Morocco is a strong player in French-language services, but Egypt benefits from clearer English accents and growing investment in language training.
Prime Minister Mustafa Madbouli summarised one of Egypt’s most distinctive assets when he said recently at the Global Outsourcing Industry Summit 2025 that no one is “more talented and more capable of learning languages than Egyptian youth”.
During the summit, Egypt signed 55 new cooperation agreements with local and international companies in the outsourcing and digital services sector.
The deals include 16 companies entering the Egyptian market for the first time and 39 existing firms expanding their operations and capacity. Minister of Communication and Information Technology Amr Talaat said this reflects growing global confidence in Egypt’s investment climate and skilled workforce.
The agreements “are expected to create around 75,000 direct and indirect jobs over the next three years across sector”, he added. They include contact centres, IT, data analytics, artificial intelligence, and technical support.
While India remains the industry leader, markets like Egypt are emerging as credible competitors by offering skilled labour at significantly reduced costs and strengthening their digital infrastructure, Sherif said.
He emphasised that the next stage of growth requires continued focus on upskilling and aligning educational programmes with market needs.
The global drive towards automation, cloud services, and remote workflows has accelerated this transition, creating new niches for markets that can adapt quickly.
Mohamed Azzam, a board member of the International Association of Technology Management, told the Weekly that Egypt’s advances stem from an 18-year national outsourcing strategy that built the foundations for a modern, export-driven services industry.
He estimates that the global export value per outsourcing worker reaches about $30,000 annually, placing Egypt’s current total near $4.5 billion and potentially exceeding $6 billion within five years.
Egypt’s strategic location, youthful population, and strong language-learning abilities are core advantages, particularly as companies seek nearshore or “time-zone friendly” partners, he added.
Despite competition from Eastern European markets, Egypt maintains a clear cost edge. Software developers in Egypt earn around $7,500 annually, compared to $20,000 in Bulgaria and Romania, $24,000 in Poland, and over $53,000 in Germany, according to data issued by the International Data Coropration (IDC) and Payscale, a US compensation data and software company.
For international companies, these differences create savings of up to 60 per cent when shifting digital or technical functions to Egypt. Lower operational costs in real estate, telecommunications, and utilities further enhance the country’s attractiveness and support larger-scale expansions by global firms.
Azzam argues that the most critical skill for workers today is the ability to learn continuously, given the rapid pace of technological change. He warns, however, that high employee turnover also complicates operations, requiring companies to invest constantly in training and development.
While many countries compete with tax incentives, Azzam believes the most valuable contribution Egypt can make is preparing its youth for the skills demanded by the global market. Strengthening retention strategies, improving workplace culture, and offering specialised technical pathways may help sustain long-term growth, he concluded.
* A version of this article appears in print in the 18 December, 2025 edition of Al-Ahram Weekly
Short link: