São Paulo – Egypt may become a power in the area of information and communications technology (ICT), according to a report disclosed on Wednesday (26) by the United Nations Conference on Trade and Development (Unctad). The country, which has been living a process of political transformation, needs to generate new jobs, especially for youths.
The organisation points out that Egypt has been successful in becoming an outsourcing hub. According to a press statement by the United Nations (UN), the country climbed from the 12th to the fourth position, from 2007 to 2011, in the Global Services Location Index, by international consultancy company A. T. Kearney.
The ranking identifies the best places for outsourcing of information technology, telemarketing services and others. Many companies hire enterprises in other nations to take care, for example, of customer service, technical assistance and even internal affairs, like accounting.
According to the Unctad, Egypt has greatly expanded its exports of services compatible with the field of information and communications technology. Outsourced labour for foreign companies is considered export.
To foster the activity, Unctad recommends that Egypt expand its technological infrastructure, promote greater use of these technologies among companies that are not installed in sector hubs and seek greater and greater volumes of users who speak Arabic. The organisation points out that it is very important for an economy based on information technology to be inclusive.
The strategy for development of the sector, according to the Unctad, should contemplate mostly micro, small and medium companies. These companies should play a greater and greater part “as producers of ICT goods and services and… as users of ICTs.” “SMEs represent an important vehicle in order for Egypt to succeed in growing the ICT sector,” says the report.
The organisation recommends strong actions to strengthen activities like data processing, development of business applications, remote infrastructure management and the ‘Arabization’ of software.
To help in this effort, the Unctad also suggests that the country seek attraction of foreign specialists, especially Egyptians who migrated to other countries and their descendants. It also suggests fostering the use of these technologies in schools.
*Translated by Mark Ament
