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25 May 2021

Egypt Retains Top Spot in MEA Region, Ranks 15th Globally in GSLI 2021

Egypt has been ranked 15th out of 60 countries around the world, in Kearney’s Global Services Location Index (GSLI) 2021. The country has recorded 5.62% in GSLI, retaining the top spot in the Middle East and Africa (MEA) region, making it to the top 20 countries.

Kearney’s report “Toward a Global Network of Digital Hubs,” hailed Egypt as an attractive offshoring destination given the competitive compensation and infrastructure costs if offers. The report also shed light on the Egyptian efforts for developing the ICT sector.

The Egyptian government is ramping up its efforts in “Digital Egypt” vision, which has yielded great gains and attracted numerous investments, such as Ericsson digital hub in Cairo, which produces cognitive software for global markets, the report cited.

In addition, the government focuses on developing the necessary skills for the outsourcing industry in particular, and the skilled employees of the IT sector in general. The country possesses a large skill pool and a wide range of professional competencies. There are more than 700,000 higher education graduates every year, at least 100,000 of which specialize in engineering and ICTs.

The GSLI examines companies’ complex and shifting choices of the location of their offshore operations. It analyzes 47 metrics across four main categories: financial attractiveness (35%), people skills and availability (25%), business environment (25%), and digital resonance (15%).

The authors of the report predict a futuristic outlook where cost competitiveness will not constitute a priority factor for choosing/favoring a Business Process Outsourcing (BPO) location, however digital resonance will represent a key priority for business leaders and decision-makers. Accordingly, the 2021 Index introduced the “digital resonance” metric that grades countries based on the digital skills in the market, digital outputs, the amount of corporate activity, and legal protections of intellectual property.

The report has further highlighted the shift towards favoring working from home (WFH) and highly adaptable business models, which increased the demand for digital skills.

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