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Information Technology Information Technology Industry Development Agency Industry Development Agency
““ITIDA”ITIDA”
Eng. Amr MostafaEng. Amr [email protected]
Director, Policies & Int. Director, Policies & Int. CooperationCooperation
IntroductionIntroduction• Governmental body established year 2004
under e-Signature law-15
• Unique Board of Directors includes public & private
• Financed by IT and communication sector in Egypt.
MissionMission
• Develop IT companies for world class & address
new int. growth lines in (Export, FDI, Allied
Marketing)
• Develop & regulate e-Signature in Egypt.
• Promote Intellectual Property Rights (IPR) for Software & Databases (law No: 82 for the year 2002)
• Formulate Egypt’s IT National Strategy in 2006
• Reaching $1.5 billion of Egyptian IT exports in the
year 2010
• Creating up to 50.000 job opportunities.
Develop existing companies
Create new lines of business i.e. Offshoring
ObjectivesObjectives
ObjectivesObjectives
• Build e-signature infrastructure :
granted 4 Licenses to 4 private companies to operate as (Certificate Authorities).
establishing the first national Root CA for Egypt
license the government (CA) setup by Ministry of Finance & the Ministry for Administrative Development.
• Establish IPR Office to :
Raise IPR awareness, encourage investments in software industry and fight S/W piracy.
Modify IPR Executive Regulations (establishing a supreme consultative committee for IPR in ITC)
ObjectivesObjectives
Signed agreement with WB for TA
• Draft Information Security & Cyber Crime Law (through a national task force led by ITIDA)
• "Smart Token“ Project
• Encourage international business "match making" (participation of companies in regional & international conferences & exhibitions)
Cebit, Call Center Expo,
Outsource World New York, Offshore,
Systems Trade Fair, Gitex.
ObjectivesObjectives
• Support Software Engineering Competence Center (SECC)
•25 software development companies certified (CMMI) from 2nd to 5th level .
– The “Giving Away Awards” event
•22 Specialists in software testing received training from the IIST in cooperation with USAID/General Dynamics.
ObjectivesObjectives
• Awarded Rational Software license to 30 companies
• 3230 specialized software engineers and experts have been trained from 200 software companies since 2001.
• Support Contact Centers through "Customer Operations Performance Center" to (training)
• Improve the quality of software SMEs through Software Process Improvement Project.
Objectives Objectives (continued)(continued)
Egypt’s ICT - An Invitation for Partnership
EGYPT'S ICT STRATEGY 2007-2010
Contents• Why Egypt?• ICT Sector: A Role Model for Reform
ICT Sector Reform ICT Indicators ICT Industry and Export Growth
• ICT Strategy 2010 Further ICT Sector Reforms ICT for Development Development of the Export Oriented IT-enabled Services
Industry
• Partnership Opportunities Nile University, a New Platform for Innovation
Why Egypt?
• A regional hub linking the Mediterranean, Europe, Africa, Asia and the Arab World
• More than 76 Million inhabitants with 22 million in the labor force, 41 % of the population are between 15 and 39 ages.
• Strong and balanced diplomatic relations with all neighboring countries
Why Egypt?
• Intellectual Property Rights (IPR for S.W. Piracy)
• Unemployment rate
• Education
• Business Environment
• Government Support and Incentives
ICT Sector: A Role Model for Reform
ICT Indicators
• Mobile Users Penetration is at 28% One of the highest growth
rates in the world The number of
subscribers almost quadrupled in 3 years reaching 22 million subscribers
Over 1 million subscribers are being added monthly
0
5
10
15
20
25
1999 2000 2001 2002 2003 2004 2005 2006 May-07
Subscriber (Million)
Year
Mobile Phone Users
ICT Indicators .. Cont’d
• Internet users
Internet penetration at 10%
A growing population of Internet users
0
1
2
3
4
5
6
7
2003 2004 2005 2006 May-07
User (Million)
Year
Internet Users
ICT Indicators.. Cont’d
• Investments by Telecom Companies
An accelerated private sector investment in the telecom sector
CAPEX for Telecom Companies (million LE)
2000
2001
2002
2003
2004
2005
2006
0
2000
4000
6000
8000
2000 2001 2002 2003 2004 2005 2006
TE MOBINIL VODAFONE Etisalat
ICT Indicators ..Cont’d
• Telecom Companies Revenues
The reform resulted in growth of the revenues by 30% annually
0
5
10
15
20
25
1999 2000 2001 2002 2003 2004 2005 2006
Year
No. of IT Clubs
I- Further ICT Sector Reforms
• Developing State-of-the-art communications infrastructure and services Integrating Egypt in the global infrastructure
Licensing of new international submarine cables to consortiums of national and regional players
Licensing of new International gateways for voice and data Licensing of a new second fixed operator to be online in
2009
Broadband and Converged services throughout Egypt Licensing of 3.5G services for ETISALAT and Vodafone in
Egypt Consultation for licensing of Wi-Max spectrum Developing a new framework for licensing new triple play
services for voice data and video
ICT Strategy 2010
EGYPT'S ICT STRATEGY 2007-2010
• Public Private Partnerships as Key Strategy issue for ICT Development
II- ICT for Development
ICT forGovernme
nt
ICT for Health
E-content
Education & Life-
Long Learning
ICT forAll
ICT for
Developme
nt
Strategy Framework
Mu
ltinatio
nal S
up
po
rt
Human Capital Development
Local Market Demand In-sourcing and
Mega Companies(FDI)Capacity Building
Export Growth
IT Industry Info.Legislative
Environment
Telecommunications Infrastructure
Innovation, Research & Development
Nat
ion
al E
du
cati
on
S
ys.&
Res
earc
h
Cen
t.
Strategy Value Drivers
Government Support
Geographical Location
IT Suppliers
Human Resources
Telecom Infrastructure
Cost Base
•270K yearly college graduates including 17K engineers
•Multi-lingual skills
•Easy access to submarine cables (SEAMEWE, Flag)
•High investment in local infrastructure
•Competitive wages for juniors and senior
•Low cost of living and overhead expenses
• Strong presence of IT multinationals
• World-class local system integrators
• Prime minister and 3 ministers from IT
• IT-specific support programs
• Time zone• Physical
proximity
Strategy DriversLarge & Growing
International Market Off Shore & IT
enabled Services
Timeline\ Achievements
2006 2007 2008 2009 2010
Launch ICT strategyTargeted in-sourcing program ITIDA Capacity Building Program International Training Center IT Information Center Financial support mechanism
Positioning and PR campaigns2nd Venture Capital1st \Mega Co. IT awareness programs Nile U and R&D $300M in exports
2nd Mega company Expanded training programs $500M in exports
$700M in exports
$1.1B in exports
Incentive Packages for IT Offshore investors in Egypt
•MCIT cost support of 80% to 100%
•“Your curriculum, your trainers”
•Support on cost of telecom infrastructure services
•VoIP for voice services
•Support on cost of premises
•Assistance in selection of suitable location
•MCIT open to new ideas and investor requests
•Existing packages can be customizedOther
Premises
Telecom
Training•Incentives can be flexible to suit specific export-only investors
•More incentives for bigger investment commitments and greater employment capacity
Focused on Lines of Business
• Off-shore “Outsourcing / In-sourcing-FDI”
ITO/Contact Centers
BPO/KPO
Engineering & IT Enabled Services
Content Development & Management
R&D Engineering
Targeted Off-Shoring Sub-Sectors
Sub Sector Definition
IT ServicesSoftware maintenance and support; IT management; hardware management and support; development and integration
Contact CentersCall centers and customer relationship management through other methods, including
e-mail newsletters, postal mail catalogs, Web site inquiries and chats
Engineering/Technical Support Centers
Call centers and other CRM methods requiring technical knowledge to provide support
to internal and external customers of companies that deliver technology-enabled products and services
Business Process Outsourcing (BPO)
Shared service centers (captive or outsourced) for business functions; includes: human resources (HR); finance and accounting (F&A); sales, marketing and customer care; supply chain management
Knowledge Process Outsourcing (KPO)
Knowledge intensive high-end processes, including advanced analytical and technical skills as well as some decision making
Content Development & Management
Development and management of Arab/Islamic content for all IT-enabled devices: internet, mobile devices, DVDs, multimedia, etc.
R&D EngineeringR&D, prototyping, development, testing, maintenance, support and development for next generation products
Export Targets
2005 2010
TargetRevenue
R&D/Engineering
$280 m
Contact Centers
BPO Services
Localization
Arab Content
KPO Services
IT Products*
Technical Support
$100 m
$30 m$40 m
$200 m
$75 m
$200 m
$45 m
$115 m
IT Services
CAGR
27%
38%
43%22%
46%
72%
27%
25%
50%
USD 1.1 Billion
EGYPT'S ICT STRATEGY 2007-2010
Egypt ranked first among new entrants in the A.T. Kearney GlobalServices Location Index in 2005
Financial People Environment
2.7
2.6
2.7
2.9
2.7
3.3
3.0
3.5
3.6
0.5
2.9
1.1
2.7
2.6
3.3
1.6
3.6
3.0
3.2
3.5
0.6
0.9
1.1
1.2
1.0
0.9
0.9
1.1
1.0
2.7
1.4
2.0
1.0
1.1
0.9
1.4
1.2
1.1
1.8
2.1
1.9
1.6
1.4
1.2
1.6
1.1
1.4
0.9
1.0
2.2
1.2
2.4
1.9
1.9
1.5
2.7
1.1
2.0
1.2
1.3
Ranks 1-20 Ranks 21-40
2.1
0.4
1.0
1.6
2.9
0.4
1.3
1.9
2.8
0.5
3.0
1.0
0.5
2.8
3.6
2.9
3.1
3.1
3.6
3.0
0.9
1.4
1.5
0.9
0.7
2.2
1.2
1.2
0.8
2.1
0.7
1.7
2.1
1.3
0.7
1.0
0.9
0.9
0.6
0.8
0.9
2.3
1.7
1.8
1.1
2.1
2.3
1.7
1.2
2.2
1.2
2.3
2.4
0.9
0.8
1.1
1.1
1.0
0.9
1.3
UAEHungaryPolandMexicoSlovakiaBulgariaJordanIndonesia
EgyptUS (Tier II)BrazilCanadaChileCzech RepublicThailandSingaporePhilippinesMalaysiaChinaIndia1
234567891011121314151617181920 Turkey
IrelandSpainPortugalPanamaFrance (Tier II)New ZealandIsraelSouth AfricaGermany (Tier II)TunisiaAustraliaUK (Tier II)RussiaVietnamJamaicaRomaniaArgentinaGhanaCosta Rica21
22232425262728293031323334353637383940
Source: A.T. Kearney 2005 Global Services Location Index
Global Location Services Index 2005
III - Development of the Export Oriented IT-enabled Services Industry
• Promoting ICT Investment & FDI for sustaining an annual growth rate of more than 20%
• Develop a conducive ICT environment to attract FDI and Business Process Outsourcing and Knowledge Process Outsourcing
• Develop a strategy to foster exports of ICT enabled services to increase from 350 Million USD in 2007 to 1.1 Billion USD in 2010 and adding another 20K jobs
• Develop strategic partnerships with multinationals to increase investments, exports, employment and support technology transfer
Investments by MNCs in Egypt
Company Activities
IBM Software Development Center of 400+ skilled IT developers
Mentor Graphics Design Center of 170+ engineers
Intel Regional Platform Definition Center
Regional Software Enablement Lab
Microsoft Developer Support Center for Regional Developers
Software Innovation Center
CISCO Core competency e-learning institute
Oracle Global Support Center with 600+ Engineers
Orange Global Support Center with 1200+ Engineers
Alcatel Lucent International Support Center with 300+ Engineers
Satyam BPO Services with 200+ Engineers
ZTE & Huwaei
Verizon Business
Wi-Max R&D centers
$10,000,000 investment with Telecom Egypt
Investments by MNCs in Egypt
Company Activities
Wipro
Teleperformance
Telcordia Technologies
SpinVox
AC Nielsen
R&D/Engineering Design
Egypt’s ICT ExportsIT Services Technical Support
Centers
Arabic Content
Contact Centers
EL MUTAHADA
NAHDAT MISR
IT Products
Open Craft
Egyptian Companies with Global Activities
Orascom Telecom Mobile operator in Africa, Middle East and Europe Internet Operator
Telecom Egypt Jordan, Algeria Exceed
Quick-Tel Exports of hardware
NTC Saudi license
IST (EGYPT) Considered by Cisco to be amongst the top 3 ATP in the
world.
EGYPT'S ICT STRATEGY 2007-2010
Innovation
• Establishment of Technology Development Fund (VC – model) at the Smart Village (USD 50 million)
• Establishment of Incubators programs to foster innovation and competitiveness
EGYPT'S ICT STRATEGY 2007-2010
Nile University
• Academic Programs• ICT: Software Engineering, Wireless Technology, Cyber
Security• EMBA: Advanced Executive Training, EMBA Case Studies
& Case Study Development• ENERGY: Alternative Energy & Sustainability, Economies
& Management of Energy Future• MOT: Education & Research on Competitiveness
Faculty Sabbaticals & Exchange • Joint R&D
• ICT-Enabled Intelligent Transport Systems• Alternative & Renewable Energy• Wireless Technology & IP Multimedia Systems
Smart Village Incubators
