Egypt: The Hidden Pearl of Nearshoring for IT Services

The Background

A Thriving Education System Producing Top Talent

Each year, Egypt’s robust education system graduates approximately 50,000
engineers, specializing in IT, software development, and related disciplines. With an
increasing focus on STEM fields, Egyptian universities, such as Cairo University and Ain
Shams University, are nurturing a generation of highly skilled professionals. These
engineers are trained to meet the demands of global markets, boasting technical
expertise that rivals their counterparts in better known destinations, like Eastern
Europe. Here you can see just where Cairo stacks up in the QS world ranking system:

A Strong and Growing IT Talent Pool

At Egypt’s IT sector has grown rapidly in recent years. With over 600,000 IT professionals
currently active in the market, the country offers an extensive talent pool capable of
handling everything from basic IT support to advanced software development. Cairo, in
particular, has become a hub for IT excellence, with its vibrant tech ecosystem
supporting both startups and established international players.

Technical Parity with Eastern Europe

When it comes to technical expertise, Egyptian engineers stand shoulder to shoulder
with those in Eastern Europe. They are proficient in all modern programming languages,
cloud technologies, AI, and machine learning. Egyptian developers are well-equipped to handle projects requiring advanced technical know-how. Additionally, Egypt’s SAP talent pool is extensive, giving German companies access to specialized skills often required for enterprise solutions and digital transformation projects.  

Cairo: A Strategic Nearshoring Hub

As the largest city in the Middle East and North Africa (MENA), Cairo serves as a
gateway to the MENA and GCC regions, offering unparalleled access to these rapidly
growing markets. It is home to a dynamic network of IT parks and innovation hubs that
provide state-of-the-art infrastructure for businesses.

Cairo’s central location also ensures excellent time zone alignment with Europe,
enabling seamless collaboration during business hours. Flights between Germany and
Cairo are frequent and efficient, making on-site visits easy and cost-effective.

Cultural Openness and Strong Work Ethic

Almost all members of the booming ‘middle professional class’ have relatives in Europe
or the USA. The possibility of working abroad or for foreign companies has currency and
is seen as an valuable opportunity.

Egyptian professionals are valued for their adaptability and openness to international cooperation. Their work ethic is different from that commonly found in Europe, often characterized by a mix of dedication and loyalty. The difference between supply and demand determines market value. In all of Europe and the contiguous nearshoring locations, this has led to a workforce with very high bargaining power. Home office is standard practice. Churn is high, loyalty and dedication suffer.

In Egypt the situation is radically different. Churn is lower, willingness to go the extra
mile much higher. These attributes make them highly sought after by companies
looking for external capacity.

Key Statistics:

• IT graduates annually: 50,000
• Total IT professionals: 600,000+
• Cairo’s IT parks: Numerous, with modern facilities
• English proficiency: Widely spoken among IT professionals

Egypt’s status as a nearshoring destination is growing, but it remains an undiscovered
pearl for many. German companies seeking strong partnerships and long-term value
should consider exploring the opportunities that Egypt has to offer.

If you want to know more about Egypt as a destination, contact us.