Arab Finance: Egypt is aiming to increase outsourcing service exports from around $5.2 billion to $6 billion by 2026 as part of broader efforts to strengthen its position as a regional and global hub for digital and business services, according to a new analysis issued by the Cabinet's Information and Decision Support Center (IDSC).
The report described outsourcing as one of the fastest-growing sectors within the digital economy, driven by rising global demand for services such as contact centers, software development, data analytics, and professional services. It noted that companies are increasingly looking beyond cost savings and seeking access to skilled talent and technological capabilities that enable the delivery of higher-value services across borders.
Egypt has emerged as a growing destination for outsourcing services, supported by its large youth population, expanding digital infrastructure, and strategic location connecting Europe, Asia, and Africa. According to World Bank data cited in the report, the services sector remained the largest contributor to Egypt's gross domestic product (GDP) in 2024, accounting for 48.9%.
The sector has expanded significantly in recent years, with more than 240 companies operating around 270 outsourcing centers across the country, creating approximately 181,000 jobs. Egypt has also signed memoranda of understanding with 55 local and international companies, reflecting growing investor interest in the market and the country's position as a regional outsourcing destination.
The report highlighted the role of the Ministry of Communications and Information Technology and the Information Technology Industry Development Agency (ITIDA) in promoting Egypt as a global outsourcing destination, attracting investment, and supporting digital exports. Other institutions, including the General Authority for Investment and Free Zones, the National Telecommunications Institute, and Egyptian universities, contribute through workforce development and support for innovation and technology parks.
As part of its strategy, the government is continuing to expand technology parks, attract international companies, and implement training initiatives in partnership with global technology firms to equip young people with skills aligned with the needs of the outsourcing industry.
The government's strategy also includes expanding higher-value-added activities, including electronics and semiconductor design, through export development programs. Companies increasingly rely on outsourcing to improve operational efficiency, access specialized expertise, enhance flexibility, and focus on core business activities while reducing the burden of non-core functions.
The analysis also reviewed Egypt's performance in the Offshore CX Confidence Index 2025, published by Cognitive Copy and Ryan Strategic Advisory, which measures the attractiveness of outsourcing destinations for customer experience and business process outsourcing services.
According to the report, Egypt's multilingual workforce, competitive costs, operational stability, and cultural proximity to European and North American markets contribute to its attractiveness as an outsourcing destination.
India topped the index with a score of 93.9%. The analysis noted that Egypt could further strengthen its position by expanding the use of artificial intelligence and automation technologies within outsourcing services and investing in advanced digital skills development.
The report concluded that Egypt's progress in the outsourcing sector has been supported by investments in digital infrastructure, human capital, and the broader business environment. It added that continued focus on areas such as artificial intelligence, cloud computing, cybersecurity, and data analytics will be important for sustaining growth and increasing Egypt's role in global digital services exports.
