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Top IT firms to invest in Egypt

Egypt continues to prove its appeal as a leading outsourcing destination, with substantial investment commitments from leading multinationals.
Trade Arabia | 28.10.2011
Egypt continues to prove its appeal as a leading outsourcing destination, with substantial investment commitments from leading multinationals.

Hewlett-Packard (HP) and Egypt's Information Technology Industry Development Agency (ITIDA) have signed a memorandum of understanding (MoU) to provide world-class training to Egyptian hardware companies and increase their competitive advantages.

The MoU aims to assist Egyptian companies in training to help grow their businesses, impart key skills to employees and in the wider talent pool, and increase their footprint in local and regional markets.

Commenting on the MoU, Yasser ElKady, ITIDA CEO said: "This MoU is a clear testament to our commitment to support all segments of the IT industry in Egypt. While our endeavours in positioning Egypt as one of the key outsourcing destinations have yielded significant results, we are keen on extending all the necessary support to the Egyptian hardware companies and we are positive that this training, along with other initiatives will have considerable impact."

The MoU signed between ITIDA and HP was accompanied by news of a major new investment from Cisco. The company will invest $10 million to seed a sustainable model of job creation and economic development in Egypt.

The venture capital investment targets high-potential small businesses that provide innovative products and services.

Minister of Communications and Information Technology, Dr. Magued Osman said: "The Egyptian government recognises that properly functioning telecoms and IT infrastructure is essential for attracting foreign investment and enabling the private sector and government to function more efficiently. The government's aim is for Egypt to become an IT hub, providing IT-assisted teleservices to foreign companies. This $10 million investment will help us promote economic development, leading to enhanced opportunities for the people of Egypt."

John Chambers, chairman and CEO of Cisco, said: "We believe there is tremendous growth potential in Egypt's ICT sector and are committed to supporting Egypt's - as well as MENA's - long-term goals. It is therefore appropriate for Cisco to make this investment into the Egyptian economy and its people."

Olaf Krahmer, president of Cisco Egypt, continued: "Job creation and the chance for greater opportunities are of clear importance to Egyptian citizens. Through this investment, Cisco is demonstrating its commitment to assisting the people of Egypt to begin to invest in meeting these needs."

A further development was the announcement by Motorola Solutions to open a key office for the Middle East and North Africa (Mena) region in Cairo.

The strategic expansion in Egypt will not only help Motorola deliver its leading mission-critical communication products and services directly to Egyptian customers but also to many other customers outside of the country as the Cairo base of operations becomes established as the newest Regional Engineering Centre.