SWOT analysis of the ICT sector in Egypt

SWOT analysis of the ICT sector in Egypt

The ICT sector is better analyzed through the SWOT analysis seeking to understand where it is stands and where it is heading.

Strengths Weaknesses
·      ICT sector resilience to Egypt economic crisis.
·      Increasing digital activity in the public sector.
·      Relatively low employee turnover (labour laws)
·      Infrastructure development and low ICT infrastructure cost (dropping prices of the infrastructure access)
·      Energy resources
·      Increasing start-up activities.
·      Low cost on starting/doing business
·      Foreign investments
·      Skilled, qualified and multilingual graduates
·      Strategic geographic location (well-located from African and European and some Asian cities)
·      Same time zone with Europe
·      Encouragement of the government by facilitating ICT sector
·      The basics of national internet infrastructure
·      Technical skills are too broad and thin
·      Lack of sufficient expertise, project management, marketing and start-ups management
·      Limited local demand for software
·      Lack of management recognition of using IT tools for business
·      Infrastructure level and cost is high compared to the capacities of manufacturers and beneficiaries
·      Bureaucracy
Opportunities Threats
·      Penetration of internet in households and business is increasing
·      Chinese investments
·      Human Capital (qualified graduates)
·      Growing technical skills in ICT
·      Technical Parks
·      Government support
·      Changes in taxes
·      Introduction to new intellectual property laws
·      Intellectual rights violations
·      Piracy rates are relatively high
·      Lack of financial support to the ICT sector
·      Political instability
·      Slow recovery of economics after Egypt’s crisis

Graduates

Egypt has a large base of newly qualified graduates. Egypt produces 480,000 university graduates each year, according to official records, 50,000 of whom hold an IT-related degree.
In order to support the country’s development and expansion plans and attract foreign investment, the MCIT has met with key leaders in global companies such as Microsoft, Intel and Cisco. Microsoft has set up one of its two global innovation labs in Cairo (the other is in Aachen, Germany). The Cairo lab specializes in prototype development and applied research.
Another success story is the establishment of the software design centre of Valeo, an automotive supplier of components and integrated systems for both original equipment and aftermarket sectors, in Smart Village.

The industry

The industry is moving from low-value services, such as call centres, to high-value services, such as knowledge process outsourcing and IT outsourcing. These high-profile, high-value investments build on the foundations that Egypt has already established in the ICT sector. The country has held a solid reputation in the global outsourcing industry, for example. Egypt ranks 10th in A.T. Kearney’s latest Global Services Location Index, a table ranking the competitiveness of different outsourcing markets.
This is our seventh post from series about analysis of Egypt IT/ICT market. Stay tuned for more or subscribe to our mailing list. Here is a plan of our posts in this series:

Sources:
http://www.kwintessential.co.uk/resources/guides/guide-to-egypt-etiquette-customs-culture-business/

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