13 November 2023

The Legal Framework For Outsourcing To Egypt

Andersen in Egypt


Andersen in Egypt is offering comprehensive and varied legal and tax services to companies and individuals, in addition to financial advisory services licensed by the Egyptian Financial Regulatory Authority (License No. 47), through our team of 9 partners and more than 70 of the top lawyers and consultants.
The surge in globalization and technological expansion has ushered in an era where businesses are continually exploring optimal methods to bolster efficiency while curbing expenses.
Egypt Employment and HR
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The surge in globalization and technological expansion has ushered in an era where businesses are continually exploring optimal methods to bolster efficiency while curbing expenses. One avenue that has witnessed burgeoning interest from international entities is outsourcing. Egypt, with its unique attributes, has emerged as a prominent hub in this context. This article will shed light on the specific legal framework governing outsourcing in Egypt, accentuating its advantages and pivotal considerations for international establishments.

Why Outsource to Egypt?

Egypt, with its strategic positioning bridging Africa and Asia, presents a potent blend of an expansive skilled workforce, competitive pricing structures, and a swiftly evolving IT infrastructure. Coupled with a forward-thinking governmental approach focused on refining the business landscape, outsourcing in Egypt has become a compelling choice for global corporations.

Legal Infrastructure for Outsourcing to Egypt:

Regulatory Framework: Egypt has curated explicit laws and regulatory mechanisms to engender an environment conducive to outsourcing, aiming to safeguard both the service providers and their clientele.

  • Law No. 72 of 2017 – Investment Law: This law furnishes numerous incentives and assurances for foreign investors keen on exploring opportunities in outsourcing in Egypt.
  • Law No. 10 of 2003 – Telecommunication Regulation Law: This statute governs aspects related to electronic communication and data protection, which are quintessential for IT and tech-driven outsourcing in Egypt.
  • Law No. 82 of 2002 – Intellectual Property Law: Safeguarding intellectual property rights, this law ensures that proprietary processes, data, and information remain confidential and shielded when outsourcing in Egypt.
  • Labor Law No. 12 of 2003: It delineates the contractual obligations, rights, and regulations pertinent to employment, significant for businesses that involve manpower-based outsourcing in Egypt.

Benefits of Outsourcing to Egypt:

  • Cost-Effective Solutions: The economic structure of labor and operations in Egypt facilitates substantial monetary savings, ensuring no dip in service quality.
  • Proficient Human Capital: Egypt's demographic comprises a young, well-educated, and multilingual populace, making outsourcing in Egypt synonymous with top-tier service delivery.
  • Geographical Leverage: Egypt's central location offers a distinct advantage, especially for enterprises in Europe, Africa, and Asia, enabling seamless real-time collaboration.
  • Governmental Support: Through progressive policies, the Egyptian government has been encouraging the outsourcing sector, ensuring streamlined processes and substantial growth prospects.

In conclusion, with its robust legal infrastructure, Egypt serves as an enticing destination for international businesses considering outsourcing. Not only does it promise cost efficiency and quality but also ensures that the entire outsourcing process is underpinned by a strong legal foundation. Outsourcing in Egypt, thus, stands as a testament to the country's dedication to creating a harmonious and growth-centric business environment.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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