The MGS Blog

Tuesday, February 3, 2015

Exercise: Egypt as an ideal OOS location

In groups (~10 min)
Identify 2-3 key advantages of Egypt
Identify 2-3 key disadvantages of Egypt

Classroom discussion (~15min)
In light of these advantages and disadvantages, what type of work would you outsource or offshore to Egypt?
Thinking outside the box, what other destinations would you consider?

Summary of responses:
Young working population 82M
Low cost of labour
Proximity to Europe
Language skills (multi-lingual)
Good exchange rates
IT infrastructure
Good numbers of knowledge workers
Corporation tax 25%
Open culture (high level of tolerance)

IT infrastructure
Unstable political landscape *
Lack of monetary supports for new business
Cultural conflict *
Corruption in government *
Climate conditions
Low standards of living for many
Low economic growth
Gender inequality
Unclear corporate policy environment for business

Other comments:
Suitable for the following kinds of business
Financial, accounting and HR
Call centres and customer support
Technology R&D
Content providers
Law and legal services

Tech R&D requires: good infrastructure, low risk, low cost and good IPR protections