CAIRO: With ample human resource capacity, competitive tariff rates, well-established IT infrastructure and an attractive investment climate, Egypt is well equipped to become the regional hub for the call center industry, said IT experts.
“The ministry has launched the branding Egypt campaign to raise awareness of its capabilities in the IT sector. The objective is to make Egypt the center of attention and place its IT industry on the worldwide map, said Zeinab Zaky, business development advisor at the Ministry of Communication and Information Technology (MCIT). “We are [encouraging] international companies to establish their call centers in Egypt and make the most of [the country’s] resources.
A major selling point is Egypt’s rich human resource capacity, with some 270,000 graduates every year, out of which 30,000 speak two or more languages. “Language skills are a crucial element in the call center industry . and Egypt can have a competitive edge over countries like India, for example, where they can only [use] the English language, Zaky said.
Still, she stressed the need to offer intensive training courses to raise the competence of this resource. The ministry has already started training a number of personnel to be recruited around Egypt’s different call centers. The first phase began in 2005 and targeted 800 trainees, followed by a second phase that is estimated to reach 1,000 trainees. The ministry has earmarked a budget of around LE 6,000 to equip each trainee with the necessary language, conversation and computer skills.
In addition to skilled employees, Egypt also offers one of the lowest tariff rates in the call center industry worldwide. “We looked at other countries’ tariff rates and placed ours within a range that gives us another competitive advantage so as to attract major industry players, said Khaled Shash, executive director of the Call Center Association – an entity affiliated with the MCIT that aims to develop Egypt’s call center industry.
Currently, billing terms stand at $3,500 per month – down from the initial monthly fees of $18,000 – a price that represents a comparative advantage when compared to India’s $4,000 to $6,000 and the Philippines $5,000.
Currently, Egypt has some 12 companies that operate different call centers, employing more than 8,660 people. Export capacity has so far reached $150 million per year, but the ministry is still initiating expansion plans.
In order to attract more companies to the industry, the ministry sealed a piece land that extends over 75 feddans to be used exclusively by industry makers.
Dubbed Call Center Park, the land offers sizeable units and office spaces at relatively cheap prices, with the ability to expand office space over time. “We chose the land in Maadi because it is cheaper and accessible [through regular transportation means] which reduces operating costs for companies, Zaky pointed out. “It will also enable companies to expand their businesses over time and absorb a [sufficient] number of employees.
The ministry is currently finalizing land registration with the municipality, and the first phase of construction is due to be completed by the end of 2008. The first phase will absorb 2,250 seats, and the number is expected to reach 40,000 seats over the next six years.
Egypt’s call center industry is set to absorb some of the country’s high unemployment rates. Within the next three years, the ministry expects the industry will expand to take in 20,000 employees, with an export capacity of $470 million per year.
