Microsoft shifts some work out of Egypt

30.01.2011

Phil Fersht, the CEO and head of research at Horses for Sources, an outsourcing research and advisory firm, said top-tier providers rely on Egyptian resources largely for call center work and software support and development. For these firms "it's a massive, massive concern when the government shuts off the internet and all hell is breaking loose," he said in an e-mailed response to questions.

"Egypt has proven capable as a good quality resource location for the Middle East, Africa and European regions in areas such as IT, BPO and call center services and has invested significantly in promoting its capabilities worldwide," said Fersht. "The country has invested millions to promote its capabilities -- and now that investment is looking under threat."

Not surprisingly, the government agency responsible for hi-tech development in Egypt, the Information Technology Industry Development Agency, (ITIDA), has been offline. Efforts to reach officials by telephone, e-mail or through a have been unsuccessful.

Fersht suggested that the current problems in Egypt could prompt hi-tech firms to re-think the risks they face in other regions.

"If situations, such as what is currently happening in Egypt, proliferate to other countries with sourcing support services, the first reaction of governments now seems to be to 'shut off the Internet,'" said Fersht, "You have to question how this impacts ITO/BPO services that are hugely reliant on the Internet to succeed.