IBM's Vision for Egypt 2030: Pioneering Transformation with Hybrid Cloud and AI
Updated 5/21/2024 8:00:00 AM
Arab Finance: Digital transformation is sweeping Egypt and the Middle East, with homegrown startups and well-known players tackling challenges using innovative solutions and artificial intelligence (AI).
At the center of this phenomenon lies IBM, a longstanding technology leader with a deep commitment to empowering the tech future in the MENA region.
So, Arab Finance sat down with Marwa Abbas, General Manager and Technology Leader at IBM Egypt, to explore how IBM fosters innovation, collaborates with local talent, and drives the digital transformation journey across the MENA region.
1-How has IBM’s business in Egypt evolved over the past few years?
2024 marks a significant milestone for IBM in Egypt, as the company celebrates its 70th anniversary. This reflects seven decades of impactful presence in the country.
Since 1954, IBM has been actively involved in vital projects that have contributed to Egypt's economy and supported government initiatives.
Throughout the years, IBM has been instrumental in revolutionizing global business practices, introducing innovations like punch cards, ATMs, magnetic stripe cards, and hard drives. It even contributed to the Apollo mission that landed the first man on the moon.
These advancements have shaped not only our daily lives but also the way we work and interact with technology, all made possible by IBM.
IBM's culture revolves around continuous reinvention, driven by a deep-rooted belief in the power of technology to drive progress for both businesses and society. This commitment to adaptability and innovation positions IBM at the forefront of tackling the ever-evolving challenges of the modern world.
Today, IBM's clients rely on the company to manage some of the most critical systems globally, such as electrical grids, airlines, mobile networks, and financial institutions. By enhancing the speed, productivity, and security of these systems, IBM not only improves business operations but also contributes to the overall betterment of society.
IBM's recent innovations, particularly in the realm of AI for business, exemplify its role as a catalyst for global progress. The Watsonx enterprise data and AI platform symbolize IBM's dedication to innovation, offering a versatile solution tailored for various business applications.
With nearly 1,000 trials underway across sectors like human resources, customer relationship management (CRM), and app modernization, Watsonx is empowering businesses to create value through AI. Noteworthy implementations include successful projects at Sevilla FC, the Grammys, Wimbledon, and the US Open.
2-How is IBM adapting its strategy to address the growing demand for cloud computing and digital transformation services in Egypt?
IBM is committed to Egypt, in line with the country’s 2030 Vision. Our dedication to Digital Egypt, coupled with transformative technologies like hybrid cloud and generative AI, propels Egypt into a future, deeply rooted in technology, and vibrant with skills of the future.
The company invests heavily in developing solutions that can withstand and adapt to various disruptions, including natural disasters, cyberattacks, and unexpected market shifts.
One of the solutions is generative AI, which is revolutionizing the technology landscape globally. This technology empowers businesses to automate tasks that were once labor-intensive and time-consuming, leading to increased efficiency and productivity.
Foundation models are set to radically change how businesses operate, with an upcoming study from IBM indicating that 41% of IT professionals say their company is exploring generative AI, and 27% are actively using it.
To bring this innovation to the Egyptian market, IBM signed a memorandum of understanding (MoU) with the Ministry of Communications and Information Technology. This collaboration aims to utilize generative AI and smart digitization solutions for business cycles in government institutions, digitize government services provided to citizens using the Watsonx platform, and provide expert training and support to the ministry's Applied Innovation Center team.
Recently, we have extended our partnership with the Ministry of Communications and Information Technology to leverage AI models. Through this collaboration, we are working with the ministry to utilize Watsonx platform to co-create AI models, provide technical guidance and training to develop AI teams, and ensure that the pilot models offer enhanced workflows within the governmental sectors.
3-How does IBM Egypt differentiate itself from its competitors in the Egyptian market?
IBM is a technology company with a consulting business at scale. Strategic partnerships make up more than 40% of IBM Consulting's revenue and delivered double-digit growth in signings and revenue for the full year.
We are the only provider today that offers both a technology stack with our Watsonx platform and consulting services for deploying and managing generative AI.
The IBM Watsonx platform for data and AI was launched in May 2023. It is designed to help organizations expand the scope and accelerate the impact of advanced AI using reliable data.
Watsonx consists of three main components: Watsonx.AI, a unified environment for training and deploying AI models; Watsonx.data, a fit-for-purpose data store built on an open data lake house architecture; and Watsonx.governance, a toolkit to accelerate AI workflows with responsibility, transparency, and explainability.
Our expanding ecosystem, skills and technical expertise, global reach, and co-creation approach not only set us apart from our competitors but also outpace their consulting performance.
Compared with other consulting giants, IBM is much more focused on our strategic partners, as well as digital transformation, data, and AI, as opposed to a much broader swath of offerings that other people have.
IBM wants partners to succeed but will still play a lesser but critical role in providing innovative technology. We plan to focus on key technologies such as AI, hybrid cloud computing, quantum computing, and blockchain.
4-How does IBM Egypt address the skills gap in the Egyptian workforce through its training and educational initiatives?
Executives estimate that 40% of their workforce, mostly those in entry-level positions, will reskill for AI and automation over the next three years. To help close the global AI skills gap, IBM announced a commitment to train two million learners in AI by the end of 2026, with a focus on underrepresented communities.
To scale knowledge of AI and equip individuals with the digital readiness for future jobs, we collaborate with partners to leverage the IBM SkillsBuild platform, a free digital training program. The program offers over 1,000 courses on workplace skills like data analytics, cybersecurity, AI, and cloud computing. It provides diagnostics, online coursework, resume-building certifications, one-on-one coaching from mentors, project-based learning, and virtual job fairs.
In 2021, IBM pledged to train 30 million people globally by 2030, subsequently announcing a clear roadmap with more than 170 new academic and industry partnerships. The effort will leverage IBM's existing programs and career-building platforms to expand access to education and in-demand technical roles.
In Egypt, we signed an MoU with the Ministry of Communications and Information Technology (MCIT) to advance IT skills for outstanding students as part of the country's Digital Egypt Cubs Initiative (DECI), also known as Ashbal Misr Digital Initiative. The initiative aims to select top-performing school students and prepare them to leap into communication and information technology in Egypt, as well as explore new horizons in these fields.
We have also signed an agreement with the Information Technology Industry Development Agency (ITIDA) to expand operations through centers of excellence, demonstrating our commitment to bringing innovation from Egypt to the rest of the world.
5-How is IBM leveraging its global expertise while remaining sensitive to local business practices and regulations in Egypt?
Globally, IBM is now 112 years old. Today, we are even more strategically focused, more technologically capable, and better able to integrate technology and expertise to solve our clients’ problems.
IBM believes in the importance of providing integrated services to clients in Egypt, whether in the public or private sectors, while adopting global innovations in IT.
In today’s world, AI solutions are being deployed across companies to help tackle repetitive tasks, allowing employees to focus on higher-value work.
In the financial and banking arenas, we have recently collaborated with e-finance to develop platform infrastructure, digital banking platforms, integrated and intelligent business systems, and digital solutions for customers. We are working together to introduce a business model and build and manage all components of digital banking.
IBM has also partnered with Commercial International Bank (CIB) to integrate existing and new services from branches, digital channels, mobile and internet banking, interactive voice response (IVR), business processes, and CRM. The integration is part of the bank’s digital transformation journey to modernize its IT infrastructure.
This allowed CIB to offer a more agile banking environment, which has increased efficiency, enriched resiliency, streamlined operations, and improved productivity, ultimately benefiting the end-user experience.
Beyond banking, we have collaborated with DMC Media Group, allowing them to manage content distribution to syndication partners through IBM Aspera file transfer and streaming solutions. Designed to manage the movement of data over global networks, Aspera eliminates throughput bottlenecks using the Fast Adaptive and Secure Protocol (FASP) transport technology, which optimizes available bandwidth to maximize speed and scale up with no theoretical limit.
6-Can you elaborate on IBM's recent partnership with FABMISR and its potential impact on the financial sector in Egypt?
Our partnership with FABMISR to employ IBM's Cloud Pak solutions aims to facilitate the bank’s revolutionary digital transformation journey. The collaboration is focused on transforming FABMISR’s business processes and overall customer experience, delivering unparalleled reliability, security, and speed to their clients.
Leveraging AI software with IBM Cloud Pak for Integration and IBM Cloud Pak for Business Automation built on Red Hat OpenShift, FABMISR has unlocked a world of digital innovation.
These comprehensive platforms provide seamless integration and AI-powered automation capabilities that accelerate digital transformation.
Recognizing the need to embrace a customer-centric approach, FABMISR has transitioned its banking model and operations to meet the evolving demands of the modern world. With a relentless focus on enhancing return on investment and exploring new revenue streams, FABMISR has taken a bold step forward, guided by the expertise of IBM.
The collaboration between FABMISR and IBM is a significant milestone in the banking industry, showcasing the potential of digital transformation. These joint efforts are redefining the future of banking in Egypt, setting new standards of excellence, and inspiring other financial institutions to embark on their transformative journeys.
7-What are the opportunities and challenges Egypt’s economy faces in the digital age? And how can IBM collaborate with the government to accelerate digital transformation and expand its market share?
The Egyptian government, led by the MCIT, has taken many positive steps to develop the information technology industry, making it more competitive regionally and globally. This has been achieved by establishing a strong digital infrastructure through various initiatives and creating local demand for information technology applications.
IBM supports the government's current digital transformation program to digitize sectors to improve performance, increase resource management efficiency, and reduce costs in sectors experiencing expansion in digital operations.
No society can do without modern technology, but what distinguishes the spread and reliance on technology is the financial cost.
In most countries, financial resources are available to institutions. Meanwhile, in Egypt, we find that the political leadership and government programs have given it a high priority. There are very clear executive steps in this regard to develop systems, automate processes, and disseminate culture.
One of the most important challenges that may affect the speed of digital transformation dissemination is the availability of both trained human resources and financial budgets to generalize digital transformation projects across all entities. The Ministry of Communications is making great efforts to overcome these obstacles.
As such, IBM has made significant contributions to skills and expertise development in the technology field, enhancing digital exports and creating job opportunities in Egypt.
Adding to that, expanding our services globally is part of our commitment to contribute to achieving Egypt's strategic targets for the digital transformation of the outsourcing industry in 2022–2026. This includes doubling digital exports and creating extensive job opportunities in the services export sector while building capabilities in high-value services.
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