The Case of Egypt
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Box 6.2: ITIDA Programs ITIDA undertakes several programs. These programs have the following aims: • Developing the skills of potential and actual workers in the ICT sector • Building the caliber needed for work in BPO by providing the necessary training in soft, technical, and language skills through special educational initiatives • Enhancing the linguistic capabilities of new entrants to BPO and the managerial skills of existing workers • Building the capabilities of IT companies through ITIDA’s affiliate SECC (Software Engineering Competence Center), which promotes and supports the development of Egypt’s software industry by raising industry standards and professionalism • Supporting companies to sharpen their international competitiveness and export potential • Protecting intellectual property rights in the IT field • Facilitating secure online business through enhancing the use of e-commerce and e-signature • Building bridges with academia through special programs that aim at bringing academic expertise to the IT field • Strengthening links with multinationals (for example, ITIDA launched a joint nanotechnology research center with IBM aimed at enhancing the research and application of nanotechnology in different fields of interest to Egypt) Moreover, ITIDA has developed special programs aimed at identifying and supporting potential champions in IT. For example, ITIDA’s Technology Incubation Program focuses on supporting the development of promising seed and start-up IT companies. The program is designed to identify potential innovations in the ICT sector by identifying candidates for incubation and supporting them, thus resulting in a greater number of successful start-ups and small businesses. ITIDA supports program participants by providing furnished office space in the Smart Village. Participants receive full training and consultation that focuses on technical, project management, human resources, financial, marketing, business development, and networking. The incentive packages also include payment of salaries on the basis of a predefined salary scale. ITIDA supports attendance at start-up conferences and international exhibitions worldwide. Other programs focusing on enhancing exports include the Go to GCC Program, which aims at helping Egyptian IT firms export to Gulf Cooperation Council (GCC) countries by providing a platform for partnerships with leading system integrators and channel partners in the region. ITIDA handles all issues related to licensing and provides a shield against red tape and cumbersome government procedures for firms working in this field, thus overcoming some of the negative business climate conditions previously highlighted. In February 2010, ITIDA announced a new export promotion program, Export IT. This program aims at supporting Egyptian exports of IT services and products by providing a 10 percent export subsidy on the value added (software products, consultations, training, IT-enabled services, software applications, system analysis, and so on) created by Egyptian IT firms in their export products. The goal is to reach US$2 billion of exports of IT products and services by 2013. Through March 2010, 154 firms had signed up for Export IT, and 140 firms met the necessary conditions and were accepted for registration. Source: ITIDA website, http://www.itida.gov.eg.