Egypt offers not only potential for more cost-effective labor, but also a skilled and diverse workforce – two key considerations for organizations considering business process outsourcing (BPO). The World Economic Forum notes that medium and high-skilled jobs make up 90% or more of the employment in Egypt, indicating the presence of skilled talent.
Egypt is a lower-middle income country with a population exceeding 111 million and a current labor force of 31 million. According to World Bank, the labor force has grown by 6% over the last decade and this trend is expected to continue. The birth rate has been on the rise since the mid-2000s and as this generation enters working age, the labor force will increase as a result – a stark contrast to many other regions that are facing aging, shrinking populations.
Employment comes in two forms in Egypt – formal and informal. The workforce prefers formal employment in the public sector; however, opportunities are scarce resulting in high underutilization of talent. The World Bank notes that among individuals with advanced education (bachelor’s degree or above), 2.9 million (15%) are unemployed. The Egyptian government recognizes the economic potential in outsourcing and, in 2022, launched the “Digital Egypt Strategy for the Offshoring Industry 2022-2026” with a goal to triple revenue generated from offshoring services through 2026.
Egypt is a highly sought-after destination for call centers, however, there are limited technology parks to adequately support the complexities of these operations. Organizations interested in pursuing Egypt for offshoring may have to carry more of the infrastructure burden but will ultimately benefit from the large pool of formally unemployed, young, well-educated talent waiting for an opportunity.