Strong growth predicted for Egypt CRM outsourcing sector

Egyptian contact centre outsourcing industry will continue to grow says Ovum

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Strong growth predicted for Egypt CRM outsourcing sector Ovum sees strong potential for Egypt's outsourcing industry.
By  Mark Sutton Published  August 24, 2010

Analyst company Ovum is predicting that the size of Egypt's outsourced contact centre industry will almost double by 2015.

According to a new report, The Future of CRM Outsourcing in Egypt, Ovum expects the country's CRM outsourcing business will continue to show strong growth, with the number of workstations deployed for outsource contact centres set to grow from 9,000 in 2009 to 15,000 in 2015.

Ovum analyst Peter Ryan, cited several reasons for the growth over the past five years, including pricing, linguistic skills and government assistance to the sector.

"Foremost driving Egyptian CRM outsourcing growth is aggressive pricing coupled with extensive scalability", said Ryan. "Egypt is one of the few locations that outsourcers can use for the delivery of multiple European languages, including English, French, German and Italian. The key is Egypt's addressable agent pool, which is one of the largest in the world, which is important in ensuring cost stability over the long term.

"Over the past five years, the Egyptian CRM outsourcing space has grown from a few locally-owned firms to including some of the largest names in the global industry, including Sykes, Teleperformance, Stream Global Services and most recently Sutherland. This will instil confidence in Egypt among clients, and other vendors that may be uncertain if setting up in that country is viable," he added.

The report also highlighted possible challenges to the ongoing growth of the sector, including the political and economic stability of Egypt, and a lack of transparency in business processes. The country is already addressing some of these issues, but will need to take further steps to convince more Western companies to outsource to Egypt, Ryan said.

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