MENA outsourcing revenues to touch $2.69 billion by 2016
The outsourcing industry in the MENA region is expected to grow at a compound annual growth rate (CAGR) of approximately eight percent for the period 2009-2016 with market revenues touching US$2.69 billion, according to global consulting firm Frost & Sullivan.
The emergence of the Middle East and North Africa (MENA) region as an ideal off-shoring location for companies in both Europe and Asia is the key factor driving the industry’s growth.
Malek Al Malek, Managing Director, Dubai Internet City and Dubai Outsource Zone, members of TECOM Investments, highlighted the trends at the third Annual Arab Outsourcing Conference in Dubai. Dubai Outsource Zone, one of the first free zones dedicated to outsourcing in the UAE, was one of the main partners at the event that was organised by TCQ Triangle.
Held from 8 -11 May, the event drew speakers from the Qatar Foundation, UAE telecommunications provider du, AT Kearney, University of Tennessee-Center for Executive Education, US, Nokia Siemens Network, and the Jordan Investment Board among others.
Malek Al Malek added: “In 2010, the UAE has been reported as the second largest for the outsourcing market in the MENA region, after Egypt, thanks to competitive compensation costs, a rise in the quality of its management schools and an improvement in literacy scores. The UAE leads in headquarters functions and services, which support many multinational corporations throughout the region.”
The Annual Arab Outsourcing Conference examined topics such as outsourcing successes and challenges, vested outsourcing, opportunities in outsourcing, leveraging talent, driving innovation, outsourcing strategically for sustainable competitive advantage, as well as outsourcing risk and governance, running shared services organisations in MEA and creating effective SLAs.
Jinobi Narain, Director – Conference Production, TCQ Triangle, said: “The Arab Outsourcing Conference is being hosted for the third consecutive year and reflects the growth registered by the industry. It also serves as a testimony to the increasing maturity levels of participating organisations. Best practices in the region are comparable to international markets especially in areas such as ‘Outcome Based Outsourcing’. This has encouraged organisations to better grasp the benefits of sourcing activities that generate measurable outcomes.”
DOZ provides a comprehensive purpose-built infrastructure to both captive and non-captive companies looking to set up in the region, control costs and gain efficiencies by leveraging the talents, technology and expertise in the UAE.
Dubai Outsource Zone currently hosts a number of companies in diverse sectors such as banking and finance, accounting, IT, payroll processing, engineering, research and development as well as design.