Excellence in Delivery: Virtual Teams in Egyptian Nearshore Development

Egypt is emerging as an increasingly attractive destination for software development outsourcing, particularly for European companies. The substantial population, exceeding 110 million people, provides a vast pool of highly skilled and motivated experts ready to join virtual teams in Egypt. The country’s proximity to Europe, approximately a 4-hour flight within the same time or adjacent zones, coupled with language proficiency (especially in English, French, and German), is complemented by highly competitive labor costs. These are not the only reasons why remote developers in Egypt are becoming popular among Western companies. In this article, we are going to make a deep dive into the value of virtual teams Egypt can offer and see what makes local experts a great choice for a software development project. We will also discuss the most essential factors to consider when making the choice in favor of virtual teams in Egypt.  

What Makes Virtual Teams in Egypt a Compelling Choice?

We live in a new era of virtual teams and remote collaboration, making it less important for employees to be physically present. Many companies have discovered that the location of their workforce is less significant for certain functions. This shift has presented an opportunity for small and medium-sized enterprises to capitalize on the capabilities of remote developers from Egypt, enabling them to respond effectively to rising cost pressures. An increasing number of companies opt to outsource to Egypt, driven by several key factors.

Multilingual support

Egypt boasts a vast workforce proficient in various languages beyond Arabic. This abundance facilitates the easy acquisition of multilingual support services by companies. English is commonly learned as a second language in schools, and influenced by European ties, some graduates even acquire proficiency in third languages like French or German. Additionally, many workers learn Italian, Korean, and other languages, further enhancing the pool of linguistic talent.

Tech-savvy workforce

Egypt annually produces thousands of young, tech-savvy graduates entering the workforce. These individuals are trained across various fields, including IT and related disciplines. Educational institutions and universities contribute by offering resources and workshops to prepare employees for roles in call centers and Business Process Outsourcing (BPO) operations.

High-quality infrastructures 

Egypt boasts top-notch infrastructures that rival leading offshoring destinations and developed countries. The Digital Egypt strategy, implemented by the government, continually advances digital infrastructures. In 2019, Egypt earned recognition as an “African tech hub,” attracting nearly 100 tech startups. The Global Services Local Index ranked Egypt as the most attractive location in the Middle East and Africa, placing it 15th globally. With an impressive 86th ranking in Ookla’s global speed index as of January 2022, Egypt possesses one of the fastest internet connections in Africa.

Business-friendly climate

Recognized as a significant recipient of foreign direct investment (FDI) in the Middle East and the leading recipient in Africa, Egypt offers a business-friendly climate. Geographically linking Africa to two continents, presents an advantageous environment for businesses from developed countries. Close proximity to Europe, with insignificant time differences, adds to its appeal. The government’s commitment to improving the business climate is evident through policies like investment laws, designed to attract more foreign investments through incentives, guarantees, and streamlined processing.

Strategic location

An average software developer in Egypt benefits from being located in a time zone that closely aligns with their major markets in Western Europe. This alignment facilitates the seamless handling of real-time tasks, such as customer calls or social media moderation, which predominantly occur during daytime hours—hours that synchronize for both the client and the service provider. While most virtual teams in Egypt demonstrate a longstanding commitment to operating night shifts to accommodate client work, Egypt shares its time zone with countries like Bulgaria, Estonia, South Africa, Finland, Greece, and Romania. Operating on East European Time (EET), which is UTC + 2 (adjusted for Daylight Savings), remote developers in Egypt ensure smooth daytime operations for Western European clients and those in West Asia. Additionally, the flexibility to provide 24×7 processing facilities is available to meet client needs even in the US and other remote countries.

Strong legal framework for outsourcing in Egypt

To foster a favorable environment for outsourcing, Egypt has established a robust legal infrastructure with explicit laws and regulatory mechanisms. These measures aim to provide protection and assurance for both service providers and their clients.

1. Investment Law (Law No. 72 of 2017): This law offers a comprehensive set of incentives and guarantees tailored for foreign investors seeking opportunities in the outsourcing sector in Egypt.
2. Telecommunication Regulation Law (Law No. 10 of 2003): Governing electronic communication and data protection, this law plays a critical role in regulating IT and technology-driven outsourcing activities in Egypt.
3. Intellectual Property Law (Law No. 82 of 2002): Addressing intellectual property rights, this law ensures the confidentiality and protection of proprietary processes, data, and information involved in outsourcing operations in Egypt.
4. Labor Law (Law No. 12 of 2003): This law outlines the contractual obligations, rights, and regulations pertinent to employment, making it particularly crucial for businesses engaged in manpower-based outsourcing in Egypt. It provides a framework for the employment relationship, ensuring fairness and compliance with legal standards.

All of those regulations are meant to entice foreign investors, attract employers from Western countries, and protect local employees. Any Western business trying to hire virtual employees in a foreign country must operate within a transparent and specific legislative framework, and the Egyptian government has made some serious steps toward creating such a framework. With these legislations in place, you can navigate your cooperation with remote developers in Egypt more precisely with a clear understanding of your rights and obligations.

Competitive salaries and hourly rates

Outsourcing, as a whole, is meant to provide cost-efficient hiring opportunities. When looking for virtual teams in Egypt, or any other destination for that matter, a business must consider the cost-saving opportunities presented by a particular country. Egypt stands out as an appealing outsourcing destination, attributed to its skilled workforce along with competitive rates. Here is an overview of the median annual salaries for Egyptian software developers based on their experience:

• Junior software developer: $7,300
• Middle software developer: $12,000
• Senior software developer: $20,000

Notably, the Egyptian government is actively promoting the development of the IT sector. This involves initiatives such as implementing digital transformation in government structures, offering tax incentives for growing IT companies, investing in the Internet of Things (IoT) and big data projects, and establishing new technology parks and data centers. With the growing human capital and increasing proficiency of the local workforce, it is reasonable to anticipate some growth in the hourly rates in the foreseeable future. However, as of now, Egypt stands as one of the most cost-efficient destinations in the region.

Prominent Technology Hubs in Egypt

In search for remote developers in Egypt, several cities stand out as noteworthy tech hubs. These are large industrial and technology hubs that still have strong growth potential, long-standing traditions of quality education, and vast talent pools. Let’s delve into the key tech centers in more detail.

• Cairo: As the capital of Egypt, Cairo boasts a substantial IT community, featuring prominent tech entrepreneurs. Nearly 20% of African technical startups are based in this city. If you opt to hire a software developer in Egypt, Cairo is a prime destination where the anticipated monthly cost is around $1,070.
• Alexandria: Egypt’s second-largest city, Alexandria, offers a slightly lower cost of living compared to Cairo. It hosts numerous web, software, and mobile application development companies. Hiring a software engineer here typically takes a monthly expense of around $600, while the salary for a full-stack developer in Alexandria, is approximately $700 per month.
• Giza: Right next to Cairo, Giza shares similar economic dynamics with the capital and is the third-largest city in the country. Giza presents a vibrant tech landscape, and software developers in this area earn an average monthly salary of about $1,000.
• Port Said: As a coastal city, Port Said has a smaller but growing presence in the IT sector. Hiring software development specialists in this location is associated with an average monthly cost of around $850.
• Suez: Another coastal city situated along the namesake Suez Canal, Suez is gradually establishing itself as a notable tech hub. Software developers in Suez can anticipate an average monthly salary of $670.

Naturally, Cairo is the largest and the most prominent outsourcing destination in Egypt. As the capital, it is the financial and business heart of the country, and most of the talented developers naturally flow into the capital looking for better employment opportunities. At the same time, increasing independence from the location of employment allows remote developers in Egypt to live in other regions of the country enjoying a lower cost of living and demanding relatively lower salaries.

Things to Consider When Working with Virtual Teams in Egypt

Despite the potential advantages it offers, companies may harbor reservations about outsourcing to Egypt, primarily stemming from concerns about political instability. However, it is also important for them to recognize that Egypt’s Information and Communication Technology (ICT) industry has demonstrated stability over the years, mitigating such concerns. When contemplating outsourcing to a different country, such as Egypt, businesses inevitably face risks related to control and anticipated outcomes. Hence, clients are advised to alleviate these concerns through meticulous planning, strategic thinking, and thorough research into both outsourcing and the industry itself. Seeking guidance from industry experts can be invaluable in this process. NearshoreFriends, for example, software development consulting services to assist clients in gaining a deeper understanding of outsourcing and mitigate most of the associated risks. As a result, businesses can gain more confidence in hiring virtual teams in Egypt and approach this process fully equipped with the necessary knowledge.

Pros and Cons of Virtual Teams in Egypt: Quick Rundown

Before embarking on the outsourcing journey in Egypt, a thorough evaluation of potential advantages and challenges is due. Here’s an overview of the pros and cons associated with hiring developers from a software development company in Egypt. Let’s begin with the strengths:

Pros of virtual teams from Egypt:

• Growing, educated, and multilingual workforce: Egypt offers a considerable number of well-educated professionals with multilingual capabilities, enhancing communication and improving the results of cooperation.
• Competitive labor costs: The country offers relatively low and competitive labor costs, making it attractive for hiring remote developers in Egypt.
• Accumulated IT expertise: The IT sector in Egypt has amassed significant expertise and technical skills, continually evolving to meet industry demands.
• Convenient time zone: Egypt’s time zone is conducive to collaboration with most European countries, facilitating real-time communication.
• Geographical proximity and transport connectivity: The country’s strategic location provides geographical proximity to many European and Asian countries, coupled with well-developed transport connections to Middle-Eastern nations.
• Government support: Substantial government support for the IT industry is evident through streamlined procedures, infrastructure development, and various initiatives.
• Regulatory enhancements: Recent improvements in taxation, the introduction of new intellectual property laws, and regulatory enhancements foster international cooperation.

Cons of software developers in Egypt:

• Narrowly specialized talent: While Egypt has a specialized IT talent pool, certain areas may present challenges in finding expertise. You may have a hard time finding specific expertise on the market.
• Evolving IT sector: The evolving nature of Egypt’s IT sector offers opportunities but may also introduce limitations in hiring procedures and workflows.

Despite these challenges, businesses can effectively navigate the hiring process for Egyptian developers with the assistance of a reliable virtual team engagement partner. Cooperation with experienced vendors, especially the ones familiar with the Egyptian market, can give you a strong advantage and help you find truly exceptional talent.

Conclusion

The array of advantages offered by virtual teams in Egypt presents an enticing option for businesses seeking efficient and cost-effective solutions in software development. Egypt seamlessly integrates talent and collaboration, featuring a professional workforce well-versed in diverse technologies, proficient in English, and culturally aligned with Western countries. The country’s strategic time zone alignment, robust government support for the IT sector, and a flourishing startup ecosystem further contribute to its appeal.  Egyptian developers emerge as a valuable asset for businesses aiming to attain their software development objectives within a dynamic and expanding tech landscape. Their commitment to quality, emphasis on intellectual property protection, and a track record of successful engagements with global clients enhance their standing as a reliable resource for achieving software development goals.