Egypt as a Contact Center Outsourcing Destination of Choice
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2 Egypt as a Contact Center Outsourcing Destination of Choice Making the right choice for your customer service investment Evan Kirchheimer, Datamonitor Research Director Technology and Services March 29,
3 Agenda Introduction Egypt in the spotlight National market comparison Why Egypt? Conclusions Questions 3
4 Global trends in Contact Center Outsourcing Despite recent negative press companies in the UK continue to outsource contact center services abroad; However, traditional contact center outsourcing locations continue to slow in terms of total agent position growth; New outsourcing destinations are emerging every year in order to profit from ongoing western investment; Cost is no longer the key outsourcing determinant; Investors are placing their emphasis on stability, high-quality customer service and commercial sophistication among agents. 4
5 Agenda Introduction Egypt in the spotlight National market comparison Why Egypt? Conclusions Questions 5
6 Egyptian Contact Center Outsourcing: % 50% Egyptian outsourced APs will grow from 1,500 in 2005 to nearly 7,000 by 2010; % Annual growth will peak at 50% and slow through the period; APs (000s) % 20% Annual growth The major markets serviced from Egypt include the UK, USA, France and Arab-speaking countries; % Egyptian domestic outsourcing will also increase in volume, albeit at a slower pace than offshore outsourcing % 6
7 Egyptian Outsourced APs Offshore versus Domestic 100% 80% 60% 40% 20% 0% Outsourced domestic Outsourced offshore 7
8 Egyptian Outsourced APs vertical evolution 2005 Financial services 14% Healthcare 2% Telcos 44% Manufacturing 18% Media & entertainment 2% Telcos 23% 2010 Financial services 12% Healthcare 3% Retail, wholesale distribution 8% Prof. services 5% Other 7% Retail, wholesale distribution 11% Manufacturing 24% Professional services 7% Other 16% Media & entertainment 4% 8
9 Agenda Introduction Egypt in the spotlight National market comparison Why Egypt? Conclusions Questions 9
10 Egypt vs. other UK-focused offshore markets Egypt India South Africa Hungary Stability Scalability Low overheads? Proximity 10
11 Agenda Introduction Egypt in the spotlight National market comparison Why Egypt? Conclusions Questions 11
12 Why Egypt Agent Pricing South Africa Hungary Poland Egypt India Agent Price / Hour ($US) 12
13 Why Egypt Potential Agent Pool % % Total polulation (millions) % 20% 15% 10% 5% Unemployment rate 0 Egypt Hungary South Africa India 0% 13
14 Why Egypt Language Skills and Education Education 200,000 graduates annually 80,000 IT and engineering-based Emphasis on western business skills Cultural immersion results in popular culture sophistication Language skills Most university instruction in one western language Proximity English most predominant choice among young people French, Spanish and German also popular Egypt 4 hours from London Significantly shorter trip than India (8 10 hours) or Malaysia (12 14 hours) 14
15 Why Egypt Public Support The Egyptian government has in place numerous incentives to attract contact center business, including: Tax holiday from current 40% corporate levy 5 10 years Not location-specific Established free-trade zones Tax-free Guaranteed property rights Training subsidies Contact center instruction for firms hiring up to 800 employees Undertaken at recognized educational institutes to ensure quality Ongoing funding Existing fund of $68 million (US) to support ongoing training, marketing and technology investment for foreign firms established in Egypt 15
16 Agenda Introduction Egypt in the spotlight National market comparison Why Egypt? Conclusions Questions 16
17 Conclusions Contact center offshoring is an ongoing phenomenon, despite the mixed messages we sometime hear Outsourcing investors are looking for new markets so as to capitalize on high agent quality levels, as well as low overheads Egypt is an attractive outsourcing location for UK investors due to Low price per agent Good scalability prospects Excellent English language emphasis Short distance to travel Generous incentives 17
18 Questions? Evan Kirchheimer Research Director - Datamonitor T: E: ekirchheimer@datamonitor.com 18
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