North Africa: Profiting From Emerging And Existing Markets (Market Focus)

The brief analyzes the current state of the North Africa's outsourcing industry. The key business strategies for profiting in this market are outlined as well as challenges facing the industry.

• Comprehensive forecast for domestic and offshore outsourced agent positions in North Africa through 2010.
• An overview of the factors that could limit the outsourcing to this market over the long term.
• Actionable strategic recommendations for outsourcers on how to profit from this market over the long term.

Contact center outsourcing in North Africa will grow fuelled by offshore demand.

The growth in the North Africa's domestic outsourced market will be limited by the low standards of living in the region and the small number of subscribers to the fixed line and mobile networks.

The main challenges facing the North Africa's outsourcing include regional saturation, perceived political instability and security risks, corruption and slow liberalization.

• Learn about the current size of the North Africa's outsourced contact center market.
• Comprehend the challenges facing North Africa's contact center outsourcing.
• Identify new strategies for competing in the North Africa's outsourced marketplace.

DATAMONITOR VIEW

CATALYST

SUMMARY

METHODOLOGY

ANALYSIS

Contact center outsourcing in North Africa is fuelled by offshore demand

The growth of North Africa's domestic outsourced industry will be limited

North Africa's offshore outsourced industry will grow quite rapidly

North Africa has elements that attract Western customer care investors

North Africa possesses a favorable business environment

North Africa has an ample pool of inexpensive labor

Geographic and cultural proximity

Cheaper office rental costs

There are still certain risks of which investors should be aware

There is a high risk that the market will reach its saturation point in a medium-to-long term

Perceived political instability and security risks are still a factor

Corruption and transparency also need to be resolved in North Africa

Does a lack of multichannel capability in North Africa mean limited opportunity?

Commercial sophistication variance can cause confusion for western investors

Poor infrastructure and slow liberalization

ACTIONS

Step one: assess each country in North Africa in terms of its linguistic skills and abilities to handle western customer needs

Step two: concentrate investment on voice-based customer care

Step three: examine the possibility of servicing the local markets

APPENDIX

Further reading

Ask the analyst

List of Tables

Table 1: North Africa's domestic outsourced APs (000s), 2005-2010

Table 2: North Africa's offshore outsourced APs (000s), 2005-2010

Table 3: Demand for North Africa's outsourced offshore APs, 2005-2010

Table 4: North Africa's labor market (2005 est.)

Table 6: Corruption perception index, 2005

Table 5: North Africa's information and communication technology penetration (2004 est.)

Table 7: North Africa's outsourced APs (000s), 2005-2010

List of Figures

Figure 1: North Africa's outsourced APs (000s), 2005-2010

Figure 2: North Africa's offshore outsourced APs (000s), 2005-2010

Figure 3: Unloaded agent wages, 2005

Figure 4: Annual office rental costs, € per m2