Technology has a profound impact on our daily lives, influencing how we work, learn, travel, and communicate. The transition to a digital economy has been a key to competitiveness in today’s market.
That is why Arab Finance has interviewed Hossam Seifeldin, CEO of Capgemini Egypt, a global leader in consulting, technology, and outsourcing services that started operating in Egypt in 2022. He highlighted the company’s services and plans, as well as its role in the digital transition of Egypt’s economy.
1- Why did Capgemini choose Egypt as an offshoring destination?
Egypt is an attractive Mediterranean hub, making it a popular choice for many leading Fortune 500 companies to expand their businesses and lead their operations. The country is undoubtedly leading the innovation scene in the region, attracting business moguls chasing tech-powered solutions for today’s global challenges. According to the Information Technology Industry Development Agency (ITIDA), the information and communication technology (ICT) sector hit new heights by recording a growth rate of about 16.3%, outpacing all the state’s economic sectors during fiscal year (FY) 2021/2022, making it the fastest-growing sector in Egypt.
Additionally, Egypt is the ideal outsourcing location for a number of reasons, namely its geographic location and time zone, which perfectly align with a variety of clients located in Europe; its broad pool of young multilingual talent (low attrition rates of 10-15%); its cost-competitiveness; and its robust ICT infrastructure.
2-Capgemini has recently announced a plan to provide 3,000 vacancies to Egyptians during the next 3 years. How is this in line with the company’s vision and plans in Egypt?
Capgemini is focused on helping leading companies transform and manage their businesses through technology to shape the future of their industries and transition to a digital economy. With that in mind, our goal to recruit 3,000 tech experts in Egypt by 2023 is derived from our keenness to create value for all our stakeholders, including clients, employees, partners, and shareholders. This is directly aligned with our corporate vision of building an inclusive, sustainable, and innovative digital society and our brand promise, ‘Get the Future You Want’.
3-What new features and services does Capgemini provide? What gives you a competitive advantage?
On a group level, we proudly offer a wide range of services that span the fast-evolving fields of cloud infrastructure, data and AI, connectivity, software, digital engineering, and platforms. Moreover, we provide a constantly evolving portfolio to meet the ever-changing needs of our clients without losing sight of the fundamentals of cybersecurity and sustainable development.
The currently offered services by the company from Egypt encompass four business lines: Cloud Infrastructure Services, which includes Azure, AWS, Google Cloud, and Insight Data. Business Services that revolve around business process outsourcing, supply chain, finance and accounting, and HR operations. Engineering, Research and Development (R&D) that include mechanical product support services, semiconductors, and embedded software. Finally, Applications like SAP, Sales Force.Com, and Oracle. The FDI module company aims to contribute to increasing Egyptian competitiveness in the ICT sector and thereby driving the Egyptian economy forward, leveraging the state’s sustainable development strategy Egypt Vision 2030.
I would also like to add that our strongest asset is our team; our competitive edge lies within a strong pool that brings together passionate, skilled people, a tech-driven approach to innovation, and a deep commitment to clients to help them unlock the true value of technology.
4-How does this come in line with Egypt’s digital transformation goals and vision 2030?
Capgemini Egypt is working with the Egyptian government to help the country become a knowledge-based society with a strong digital economy. This is in line with Egypt’s digital transformation goals, its "Egypt Vision 2030" strategy, and the Digital Egypt Offshoring Strategy 2022–2026.
We are helping to increase Egypt’s competitiveness in the ICT sector and drive economic growth. We are also focused on developing the skills of young Egyptians in the offshoring industry through training programs and career guidance. This will help young talents become the driving force behind Egypt’s digital transformation.
5-Capgemini Egypt focuses particularly on the automotive, consumer products, and high-tech industries. How do you help your customers’ sustainable technological advancements in those industries?
It is important to note that sustainability is at the core of our purpose. Capgemini is focused on building a digital society that is inclusive, sustainable, and innovative. Since sustainability is one of our key pillars, we work to reduce our clients’ environmental impact and achieve net-zero emissions while promoting social responsibility and ethical governance. We provide intelligent industry solutions that connect with a larger ecosystem and conduct research on sustainability to improve customer experience, optimize product performance, and deliver value in a sustainable way.
6-As we like to talk numbers, can you shed light on the company’s financial performance and growth on the SE listed Capgemini?
Our 2022 results revealed revenues of €21.995 billion in 2022. We have grown our headcount from 270,000 employees in 2020 to almost 360,000 employees this year, while our bookings totaled €23.719 billion in 2022, a year-on-year increase of +16.8% at constant exchange rates. We also closed the year with an organic free cash flow of €1.852 billion. Our robust results for 2022 speak for themselves, and we have confirmed to the market that we will continue to grow in 2023.
Subsequently, and despite the challenges of the pandemic, we launched a Cairo-based Global Delivery Center in October 2022 to provide services to clients worldwide. To date, our team in Cairo has grown by 200 employees in less than a year. We are growing at a healthy and steady pace, and I am certain that we can reach our optimum goal in the upcoming three years by hiring a total of 3,000 professionals. To support this growth, we have relocated our premises to a new 10,000-square-meter facility that can accommodate up to 1,600 employees.
We also plan to partner with leading Egyptian universities, offer internships, and consult on the curriculum to attract top talent. Capgemini Egypt’s goal is to become a major outsourcing hub in the region and play a key role in the digital transformation of the Egyptian economy.
7-Who is your target audience, and how do you aim to build a robust customer base?
Our target audience is large corporations and organizations across various sectors and industries that need to transform and have their businesses managed through technology to shape the future of their industries and drive tangible business impact.
As mentioned earlier, we have one shared purpose, which is unleashing human energy through technology for an inclusive and sustainable future. Our Global Delivery Center also benefits from the rich talent pool in Egypt, which has a well-matched skill set for the work that Capgemini undertakes for its clients.
8-As a leader in digital, engineering, and AI, how do you see the impact of AI advancements on Egyptian and global economies?
53% of organizations have managed to scale AI projects in production, but only 13% overall have rolled out multiple AI applications across numerous teams, according to the findings of the Capgemini Research Institute report, "The AI-Powered Enterprise: Unlocking the Potential of AI at Scale.”
Additionally, advancements in AI have the potential to greatly benefit both the Egyptian and global economies. A report by the McKinsey Global Institute suggested that AI could add $15 trillion to the global economy by 2030 through increased productivity, innovation, and growth. AI can also help address major global challenges such as climate change, healthcare, education, and poverty.
Since Egypt progressed by 55 places in the "Government Readiness for Artificial Intelligence" index by the Human Development Report, we see a lot of potential in the AI industry in the local market. We certainly support Egypt’s AI vision, and as a company, we offer services such as data science and machine learning, as well as scaling younger talents to delve into the AI spectrum.
9-What advice would you like to give to foreign investors who are considering expanding to Egypt?
Egypt is an attractive destination for foreign investors thanks to its large and diverse market, strategic location, skilled and competitive workforce, and supportive business environment. The country has implemented economic reforms to improve its investment climate and launched a national vision for sustainable and inclusive development. Egypt is working to become a digital society and a regional hub for innovation and technology.
The ICT sector is seen as a catalyst for economic growth and social development. With its advantageous location, abundant talent pool, cost-competitiveness, and government support, leading companies are taking notice of the potential in the region’s ICT sector. Foreign investors considering expansion in Egypt can benefit from various incentives and opportunities.
Conducting thorough market research and feasibility studies is advised in order to identify the best opportunities for their business. They should also seek guidance from reputable sources and experts and establish strong relationships with local partners and stakeholders.
I would certainly advise foreign investors to keep a close eye on the Egyptian markets, as we anticipate further successes and breakthroughs.