Thursday 10 February 2011

Egypt: IT outsourcers rethink risk | beyondbrics – FT.com

Turmoil in Egypt has raised well-publicised concerns about its finance, energy and tourism sectors. But there is one low-profile industry where the impact of the crisis is just as serious: IT outsourcing.

Although no rival to India, Egypt has spent the last 10 years building up an IT, research and business process outsourcing (BPO) sector that generated over $1bn revenues last year. Now its future could be in doubt as companies look again at political risk.

Phil Fersht, the head of HfS Research, an outsourcing research and advisory firm, says recent events in Egypt will change the way decisions about outourcing are made.

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