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When Egypt Beat India



Author: Ibrahim Ahmad
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When Egypt Beat India
Wednesday, November 19, 2008

We should not have any problem when Indian outsourcing biggies like Wipro and Satyam set up operations in far-off countries like Egypt. In fact we should be happy-because the National Outsourcing Association of UK recently judged this ancient country the “Outsourcing Destination of the Year” for 2008. New countries give a new perspective, open up new business opportunities, and it is great in terms of re-risking also.

What however needs urgent discussion and action is why Wipro and Satyam can't expand to more locations within India? The current global recession is forcing many countries and their political leadership to look within and develop domestic markets. Therefore it is important that India Inc also puts pressure for the same. We need these big employment generation organizations to tell the government of the day that unless power supply is enhanced, unless roads are built, more colleges opened up, and good quality connectivity is available in smaller cities and towns, they will be forced to look at other countries for business expansion.

So what is so great and different about Egypt that India does not have? Egypt has a young population much smaller than India but it is a multi-lingual workforce. Egypt has a good and improving infrastructure, competitive cost structure, and, most importantly, an unequivocal government support.

Ibrahim ahmad

Cairo will have other geography and language advantages over Mumbai and Gurgaon, which, incidentally, are also becoming very expensive. But if Indian BPO biggies can have a center in Dehradun or Kochi, the cost of operation advantage will be phenomenal. Unfortunately our governments as well as our businesses have not been able to think beyond the top 10 cities of India.

At a time when the impact of the global meltdown on India is looming large, and elections are around the corner, the government of the day will surely be more open to make some promises in this regard. Obviously action will now take place only when the general elections are over and a new government is in place.

It is also worth adding here that out of the sixteen awards given by NOA in various categories no company from India, the self-proclaimed outsourcing capital of the world, has got any award. Except for Infosys, which has been given a special award for consistent excellence across all disciplines. This is not a good sign for a country that has great aspirations. There is clearly a lot of belt-tightening and re-invention required.

On a different and a more positive note, one is really happy to see an Arab nation coming up in a list like this. One hopes that we will have a few more countries in that region that will be inspired to build themselves on these lines.

(ibrahima@cybermedia.co.in)


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