Egypt Ranks 6th in Global Services Location Index, According to A.T. Kearney Study

Egypt makes significant gains as quality and availability of labor force improves

Dubai (19 May 2009) — Egypt has increased its ranking by 9 points in this year’s Global Services Location Index (GSLI) by A.T. Kearney. With improved capabilities, diverse language skills and its close proximity to Europe, Egypt’s continual focus on improving the sector is beginning to pay solid results. Egypt leads the MENA region as offshoring destination and is further poised for growth according to Dan Starta, partner A.T. Kearney Middle East.

The GSLI analyzes and ranks the top 50 countries worldwide for locating outsouring activities, including IT services and support, contact centers and back-office support. Each country’s score is composed of a weighted combination of relative scores on 43 measurements, which are grouped into three categories: financial attractiveness, people and skills availability and business environment.

India, China and Malaysia continue to lead the index by a wide margin through a unique combination of high people skills, favorable business environment and low cost. In particular, India has remained at the forefront of the outsourcing industry and actually has become an enabler for industry growth through expansion of Indian offshoring firms into other countries. Meanwhile Egypt made significant gains this year as the quality and availability of their labor forces improved. Egypt ranked in the GSLI’s top 10 for the first time ever.

“While cost remains a major driver in decisions about where to outsource, the quality of the labor pool is gaining importance as companies view the labor market through a global lens driven by talent shortages at home, particularly in higher, value-added functions,” said Dan Starta, Partner, A.T. Kearney Middle East. “In response, governments all over the world are investing in the human capital demanded by the offshoring industry.”

While the global financial crisis has slowed recent offshoring moves, the percentage of companies’ staff offshore may very well increase as a result of the crisis. “Layoffs at home are not translating to layoffs among offshore workers as companies seek to maintain service but reduce costs. The dynamics of offshoring are shifting as companies more so than ever evaluate the political risks, labor arbitrage and skill requirements when outsourcing” said Dr. Dirk Buchta, Partner and managing director A.T. Kearney Middle East. A more detailed analysis and information on regional performance can be found at www.atkearney.com

About A.T. Kearney

About A.T. Kearney A.T. Kearney is a global management consulting firm that uses strategic insight, tailored solutions and a collaborative working style to help clients achieve sustainable results. Since 1926, we have been trusted advisors on CEO-agenda issues to the world’s leading corporations across all major industries. A.T. Kearney's offices are located in major business centers in 36 countries. For more information, please visit www.atkearney.com.