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Outsourcing in Tunisia

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Aymen Ben jeddou

on 16 April 2014

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Transcript of Outsourcing in Tunisia

What's out sourcing ?
Reasons of outsourcing ?
Tunisia international position in outsourcing :
Tunisia has made Information Technology and Communication (ICT) one of the main pillars of its development strategy.
And it has witnessed a technological evolution in terms of communication infrastructure is among the most modern in the Mediterranean, strong multifunction high speed switches that provide the same time the telephone traffic, Internet and multimedia and a digital culture expanded throughout the country.
ICT development in the country has been led by a strong commitment of the government to boost ICT uptake. This commitment, coupled with a fairly good educational performance allows the country to position itself ahead its North African neighbors.
Also It continues to display solid educational outcomes, which remain significantly above the North African average not only in terms of quality (33rd), but also for participation at the primary and secondary levels. And second, a healthy macroeconomic environment was maintained so the country’s continue to benefit from manageable levels of public debt and a low budget deficit.

In business, outsourcing is the contracting out of a business process to a third-party. The term "outsourcing" became popular in the world near the turn of the 21st century. Outsourcing sometimes involves transferring employees and assets from one firm to another, but not always. Outsourcing is also used to describe the practice of handing over control of public services to for-profit corporations.
Outsourcing includes both foreign and domestic contracting, and sometimes includes off shoring or relocating a business function to another country. Financial savings from lower international labor rates is a big motivation for outsourcing/off shoring.

Infrastructure worldwide reference Tunisia is the 52nd according to “The Global Information Technology Report 2011-2012). Tunisia, with its rated above average human potential of the region, and the ambition of its businesses, the logic of regional hub adopted by the country has the potential to serve as a springboard to other parts of Africa and the Middle East, exploiting the advantage of bi-cultutrism.

This country offers labor costs and advantageous production compared to Western Europe and North American countries. It is also very competitive compared to several Eastern European countries.

Tunisia is the country with one of the best quality / price ratio in terms of operating costs and human resources.

Lower operational and labor costs are among the primary reasons why companies choose to outsource. When properly executed it has a defining impact on a company’s revenue recognition and can deliver significant savings.
Companies also choose to outsource or offshore so that they may continue focusing on their core business processes while delegating mundane time consuming processes to external agencies.
Outsourcing and offshoring also enable companies to tap in to and leverage a global knowledge base, having access to world class capabilities.
Freeing up internal resources that could be put in to effective use for other purposes is also one of the primary benefits realized when companies outsource or offshore.
Many times stranded with internal resource crunches, many world class enterprises outsource to gain access to resources not available internally.


Main outsourcing destination cities

Most of IT companies are located in the Capital Tunis, besides to a communication technology park in El Ghazala (Area of Tunis), which has a state of the art infrastructure to meet the needs of leading firms in the sectors of new information and communication technology. The extension works are underway to provide this city with 100 000 sqm of additional outfitted areas.

Sfax has a technopole devoted to informatics and multimedia, an attractive opportunity for foreign investors.

Seven cyberparks in El Kef, in Siliana, in Monastir, in Kasserine, in Gafsa, in Kairouan and in Sousse. Seven more parks are underway in other regions (Kebili, Tataouine, Medenine, Zaghouan, Beja, Jendouba and Sidi Bouzid).
Reasons to invest in Tunisia
Tunisia offers advantageous human and production costs compared to Western Europe and North American countries.
It is also very competitive compared to several Eastern European countries.
Tunisia is the country with one of the best quality / price ratio in terms of operating costs and human resources.
Tunisia Experiences Ups and Downs:
2010 was an exceptionally good year for Tunisian IT companies, as they secured many contracts from European and American firms that wanted alternatives to India and the Philippines and needed nearshoring centers with European language skills. However, with the Arab Spring and the continuing protests, including the resignation of its IT minister and the ouster of its president, the country slipped somewhat and risked going down the abyss of societal unrest leading to a flight of capital.
Ways to face difficulties of business after revolution :
Training the local workforce:
Expatriates who return to the Middle East often face difficulties adjusting to the expectations of the local talent pool, given local gaps in education and technology. To face this challenge, the state begin by employing graduating students who sought to work on a six-month project. Then it trained these students in communication skills, task management and work ethic.
Adapting to find new local markets:
Outsourcing is not an easy business. Indian players may not be a direct threat to the IT industry in Tunisia, mostly because they do not speak French, but they have to watch for competition from Eastern Europe and Morocco. The "onshoring" trend in the United States could also be replicated in Europe. Outsourcing is a niche market; you always have to seek new opportunities, new technologies and new ways to add value.
what's outsourcing?
reasons of outsourcing.
Tunisia intenational position in outsourcing.
Main outsourcing destination cities.
Tunisia experieces ups and down.
Ways to face difficulties of business revolution.
Full transcript