Software development in Egypt: What are the advantages?

The software development industry in Egypt is one of the fastest-growing sectors in the country in terms of job opportunities, productivity, and many other factors. There is a talented pool of well-educated IT professionals and developers with great communication and technical skills. They can advance the industry by producing better software products on schedule.

The level of development and success of the industry will ultimately depend on the initiatives and assistance provided by the government, businesses, financial institutions, and the educational system. It makes it a valuable contributor to the country’s economic development. This article will discuss the various advantages of the software industry in Egypt that have encouraged several multinationals to invest in the country for their development projects. 

Strengths of the Egyptian software industry

Even though the industry is still in its early stages, many strong points make the country a worthy choice. The country’s pro-business policies and regulations have had a significant impact on the growth of the development industry. The country accelerated its infrastructure development by developing technology parks with over 130 multinational companies in the software development area, among many others.

Check out the following points to learn about the positive attributes of assigning development projects or outsourcing them to Egypt.

  • An increasing number of newly graduated, educated people are interested in information technology.
  • Limited but accumulated industry experience, technical skills, and capacities.
  • A competitive, educated, and young workforce with the necessary knowledge.
  • Affordable and competitive labour rates.
  • Other languages, such as French and Spanish, are also studied.
  • With Europe sharing the same time zone, there may be an opportunity for the United States to work a second shift.
  • Ideally situated geographically for many cities in Africa, Europe, and some Asian nations.
  • Many business owners are willing to take chances as their companies grow.
  • Encouragement from the government by streamlining processes and logistics for the software sector

Weak points of the industry

Along with the benefits, you should be aware of the industry’s weaknesses. It will help you understand where it stands and where it is headed. Several issues need to be restructured to benefit from the opportunities available in Egypt, considering the global development of the industry and its potential in Egypt. Check out the weak points in the following section.

  • Too many people need more specialised technical knowledge. 
  • Because the industry demands improvements in knowledge in the development area, they need to be more vital to compete in the global market.
  • It takes about six months for graduates to become productive contributors at software companies (the skills gap). 
  • Inadequate project management, marketing, and startup management skills 
  • Software is in low demand. 
  • Management’s failure to recognize the benefits of using IT as a business tool 
  • There is still a limited role for the government.
  • When compared to the capabilities of manufacturers and beneficiaries, infrastructure levels and costs are high. 
  • Piracy and intellectual property rights violations require firm government regulations that are strictly enforced. 
  • Customers in the commercial and government sectors believe that software has little inherent value.

Potential threats and pitfalls

After discussing the industry’s strengths and weaknesses, it is critical to be aware of some potential risks and pitfalls before hiring Egyptian developers. Check out the pointers below to learn more about it. 

  • Since the talent pool is relatively small and constrained, it will be challenging to locate specific IT expertise in the sector.
  • There aren’t many procedures for hiring developers because Egypt’s IT sector is still in its infancy, and there aren’t yet any rules or established workflows either.
  • Egypt can be a major turnoff for US and European businesses because of the Middle East’s political instability.
  • The piracy rates are relatively high and there is a possibility of intellectual copyright violations.
  • Inadequate knowledge of software products and their effects on business growth inadequate 
  • Market research on domestic and international markets that Egyptian businesses could pursue
  • Absence of industry financial support
  • Insufficient distribution expertise to serve the global software market

The rapidly evolving industry

Even though it is still in its infancy, software development in Egypt has the potential to boom. There are advantages and disadvantages you should think about, just like in any other industry. 

As a developing country, it has invested heavily in its technology and information infrastructure since 1985 to become the platform for its economy’s expansion and development.

The country’s development industry is rapidly evolving into one of the fastest-growing offshore destinations. 

The low labour costs in Egypt, which are lower than in most outsourcing countries, are one of the reasons for Egypt’s IT success and why so many companies outsource to it. In Egypt, salaries for IT-related jobs are generally higher than those for other occupations. 

  • Many young people are considering majoring in technology, science, or engineering. 
  • Every year, up to 50.000 students graduate in IT-related fields. 
  • Some of those graduates speak English, French, or German with ease. 
  • The multilingual talent pool supports more than 20 languages in more than 100 nations. 

The industry has a workforce of IT specialists to provide outsourcing services worldwide. To simplify the working process for companies, the government built several business parks and smart villages. It is another reason for the success of the industry. 

  • Egypt is a great place to outsource because of its proximity, minimal time zone difference, affordable rates, and large talent pool. 
  • It will ensure business continuity in North America and Asia since the country is only two hours away from most European nations.

In this article, we went over a lot of information about the Egyptian software development industry, its strengths and weaknesses, as well as the challenges you will face if you hire from the country. 

With the government’s help, the industry is making progress toward becoming a thriving industry, addressing all of its weaknesses. Check out the article to learn more about the industry if you are looking to hire developers from Egypt.

Interesting Links:

Why become a software developer?

Why is Software Development So Important?

Pictures: Canva

The author: Sascha Thattil works at which is a part of the YUHIRO Group. YUHIRO is a German-Indian enterprise which provides programmers to IT companies, agencies and IT departments.

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