Impact of Egypt's awakining on IT outsourcing

Egypt had the reputation to be a country with a well educated youth but a GDP that was one of the worst worldwide. Now that things are changing we will very likely see that increasing (I would wish that for the people in Egypt very much!). But what does that mean for you and your outsourcing efforts? Egypt is just another country following in the footsteps of countries like India were cost of living went up, salaries followed and eventually the cost of outsourcing went up too. The changes in Egypt might at the same time increase friction between various layers of the population: The new IT elite which is getting higher salaries and others that feel left behind. Time will tell if this friction will result in more unrest or if the country manages to find a social approach that ensures the stability of the country. Social economic and human factors are often underestimated in IT and particular in IT security resulting in significant risks to the business.

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Egypt crisis and Outsourcing companies

Some people see Egypt as the new India when it comes to IT outsourcing. What most people do not know is the fact that a lot of the IT support from Indian outsourcing companies already comes from countries like Egypt. A country with a well educated young generation that speaks English. It might be that your IT outsourcing is not directly affected, since being hosted in India, but the IT expert in India might have trouble getting his workstation supported from the help desk sitting in Egypt.

It is just another lesson learnt of how outsourcing creates risks that are not well understood, particular when it comes to the chain of dependencies that a global economy creates. With the introduction of the cloud the picture even gets fuzzier.

Read more: Outsourcing firms logging out of Egypt

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