A remarkable 57% of companies worldwide now outsource to control their costs. Software development outsourcing to Egypt has become a smart solution for businesses that want to optimize their tech investments without compromising quality.
Egypt stands as the region’s largest tech hub with more than 130 leading software development companies. Your business can tap into Egypt’s huge pool of skilled developers and engineers. The favorable exchange rates and lower operating costs make it even more attractive. The country’s time zone works perfectly with European and North American markets to give you smooth collaboration. Egyptian developers’ strong command of English makes communication crystal clear with your team.
Recent market analysis shows that companies can save up to 80% on software development costs by outsourcing to Egypt compared to markets like Poland, Morocco, and Turkey [1]. These savings come from several factors, including better exchange rates and cheaper operating costs.
Egyptian and Western markets have a huge price gap. Software development services in Egypt cost about EUR 23,855 per year, while US services cost EUR 133,589 [2]. Senior developers in the US charge EUR 71-128 per hour. Their Egyptian counterparts with similar skills charge only EUR 33-47 per hour [3].
Entry-level software developers in Egypt earn around EUR 242,086 yearly. Senior developers with 8+ years of experience make EUR 430,259 [4]. The pay varies based on tech specialization:
Role Monthly Salary (EUR) Junior Developer 1,908 – 2,200 Mid-level Developer 2,800 – 3,500 Senior Developer 3,800 – 4,293 Hidden cost savings in infrastructure and operations
Egypt’s cost advantage has grown since the Egyptian pound lost over 50% of its value since January 2022 [1]. Companies now spend less on infrastructure and daily operations. They can cut development costs by up to 60% while maintaining quality standards [3].
The savings go beyond just paying lower salaries. A full-time employee’s operating costs in Egypt are much lower than popular nearshore spots like Bulgaria, Romania, Ukraine, or Poland. Companies typically save about 50% on their total operational costs [5].
Tech giants have set up 10-year old operations in Egypt’s software development sector. IBM, Intel, and Oracle established their facilities early and created a path for broader industry growth [6].
Egypt’s fintech sector shows remarkable growth and investments soared by 300% in 2021[7]. Fintech startups grew from two companies in 2014 to 112 by 2021 [7]. Fawry, Egypt’s largest electronic payment platform, processed transactions worth EUR 6.49 billion in 2022 and achieved a 22% annual growth rate [8].
Dell Technologies’ Center of Excellence (COE) in Egypt proves the scalability of enterprise operations. The center started with 83 employees in 2009 and now employs 1,400 staff members, with 47% being female professionals [9]. Egypt’s enterprise software market will reach EUR 217.66 million by 2025 [10]. Customer Relationship Management software leads this growth at EUR 73.19 million [10].
Instabug, an Egyptian software startup, showcases successful scaling. The company won USD 50,000 in the MIT Enterprise Arab forum and secured USD 300,000 in angel investment. Later, it received USD 1.7 million in venture funding from YC and Accel [11]. Cairo emerged as the third-largest talent hub in the MENA region with a startup ecosystem value of EUR 7.92 billion [12]. , and Egypt now holds 33% of MENA’s startup share Venture capital funding reached EUR 493.33 million in 2022[12].
Kearney’s Global Services Location Index 2023 ranks Egypt 23rd among 78 global outsourcing markets [13]. Egypt’s position in the digital world deserves a thorough competitive analysis.
India dominates global outsourcing because it has a talent pool of over 5 million engineers [14]. Notwithstanding that, Egypt brings unique advantages in cost efficiency. Software development rates in India range from EUR 28.63 to EUR 45 per hour [15], matching Egypt’s range of EUR 23.86 to EUR 46.76 [16]. Both countries maintain competitive pricing structures and target different market segments.
Software development rates in Eastern Europe typically range between EUR 20.04 to EUR 103.05 per hour [17]. Egypt’s rates prove more economical and provide for entry-level positions up to 80% cost savings[1]. This table shows the regional cost comparison:
Region Hourly Rate Range (EUR) Eastern Europe 33.40 – 71.57 Egypt 23.86 – 46.76 Western Europe 62.02 – 128.82 Quality-to-cost ratio across regions
Egypt’s edge goes beyond cost savings. The country produces 740,000 university graduates each year, with 28% specializing in STEM fields [13]. A key advantage comes from multilingual capabilities, as 30-40% of graduates speak multiple languages fluently [13]. This blend of technical expertise and language skills puts Egypt ahead of other outsourcing destinations.
Quality metrics look even better when you see that Egyptian developers deliver excellent solutions at competitive rates [18]. Egypt’s strong IT sector, with about serving clients in over 100 countries 240,000 IT specialists[19], shows its ability to deliver high-quality work economically.
Software development outsourcing to Egypt needs well-laid-out planning and a systematic approach. The Information Technology Industry Development Agency (ITIDA) shapes Egypt’s IT sector through custom-tailored programs and implementation guidance [20].
ITIDA’s framework highlights teams with multilingual skills, since and other European languages 80% of Egypt’s workforce speaks English[1]. The technical training budget has doubled over the last several years. The annual target aims to train 200,000 professionals [21]. Here’s what an ideal team looks like:
Team Level Recommended Structure Junior Developers 40% of team Mid-level Engineers 35% of team Senior Developers 25% of team Resource allocation best practices
Egypt’s government has created detailed strategies to optimize resources. The Digital Egypt Strategy for Offshoring Industry 2022-2026 wants to create 215,000 job opportunities[20]. Technical training programs focus on developing specialized skills in emerging technologies [21].
Egypt offers great cost benefits, but proper risk management is vital. The government has clear laws and regulatory mechanisms that protect service providers and clients [22]. Key risk mitigation practices include:
ITIDA makes shared funded projects and technology incubation programs possible [20]. This helps businesses streamline their outsourcing operations while they retain control over non-revenue generating functions [1].
Egypt’s software outsourcing market offers businesses a compelling way to cut costs without sacrificing quality. Data shows in development roles of all sizes. Companies that want to optimize their tech investments find this option especially attractive.70% cost savings
Major tech companies and thriving startups have proved Egypt can deliver enterprise-grade solutions. The country has a talent pool of 240,000 IT specialists who speak English fluently. This combination will give a smooth project execution and communication process.
Egypt holds distinct advantages over traditional outsourcing destinations. The cost difference between Egyptian markets and those in Eastern Europe and the West is substantial. The country’s strategic time zone makes international collaboration ideal.
The government’s steadfast dedication through backed initiatives and complete risk mitigation strategies creates a secure business framework. The makes the country a reliable long-term outsourcing partner. Digital Egypt Strategy’s commitment to creating 215,000 new job opportunities
Your business can leverage these proven cost benefits while keeping high-quality standards through well-planned implementation strategies and team structures. Egypt stands out as a strategic choice for software development outsourcing with its competitive pricing, skilled workforce, and strong governmental support. Learn more about the best countries to outsource in Africa from our website and blog.
According to recent studies, companies can achieve up to 70% cost reduction by outsourcing software development to Egypt compared to US and EU markets.
Egypt offers a large pool of skilled IT professionals, competitive pricing, strategic time zone alignment with Europe and North America, and widespread English proficiency. Additionally, the country has a robust IT infrastructure and supportive government policies.
Egyptian software development rates are highly competitive, ranging from €23.86 to €46.76 per hour. This is significantly lower than rates in Western Europe and comparable to or lower than rates in Eastern Europe and India.
Yes, many major tech companies have successfully established operations in Egypt. For example, Dell Technologies’ Center of Excellence in Egypt started with 83 employees in 2009 and has grown to 1,400 staff members. Additionally, Egyptian startups like Instabug have secured significant investments and achieved international success.
To maximize savings, businesses should focus on optimal team structures (e.g., 40% junior developers, 35% mid-level, 25% senior), leverage government-backed initiatives like ITIDA’s programs, and implement thorough risk mitigation strategies. It’s also important to conduct due diligence when selecting providers and establish clear performance metrics in contractual agreements.
https://www.jll.de/en/trends-and-insights/investor/the-growing-outsourcing-in-egypt-article-h1-2023
[2] – https://www.nilebits.com/blog/2022/05/egypt-as-the-best-country-for-software-development-outsourcing/
[3] – https://geniusee.com/single-blog/outsource-developer-rates-in-2025-how-to-choose-a-software-outsourcing-country
[4] – https://www.salaryexpert.com/salary/job/software-developer/egypt/cairo
[5] – https://www.rubikal.com/blog/unlock-the-power-of-software-development-outsourcing-in-egypt
[6] – https://www.evolvice.de/en/why-egypt-becomes-it-hub-for-the-software/
[7] – https://www.tamimi.com/news/fintech-in-egypt/
[8] – https://1xmarketing.com/news/en/world-marketing-diary-240922155207/
[9] – https://www.nilebits.com/blog/2021/12/software-outsourcing-industry-in-egypt/
[10] – https://www.statista.com/outlook/tmo/software/enterprise-software/egypt
[11] – https://egyptinnovate.com/en/success-stories/instabug-egyptian-startup-improving-experience-15-billion-users-worldwide
[12] – https://www.nucamp.co/blog/coding-bootcamp-egypt-egy-inside-egypts-thriving-tech-hub-startups-and-success-stories
[13] – https://itida.gov.eg/English/MediaCenter/News/Pages/Egypt_Gains_Momentum_as_Key_Player_in_Global_Outsourcing-.aspx
[14] – https://www.ulam.io/blog/software-outsourcing-costs-comparison
[15] – https://eluminoustechnologies.com/blog/offshore-software-development-rates-by-country/
[16] – https://qubit-labs.com/average-hourly-rates-offshore-development-services-software-development-costs-guide/
[17] – https://nearshorefriends.de/global-offshore-software-contracting-rates-by-country-in-2023/
[18] – https://www.pharos-solutions.de/blog/why-egyptian-developers-dominate-the-middle-east-tech-scene/
[19] – https://www.evolvice.de/en/egypts-thriving-it-industry/
[20] – https://itida.gov.eg/English/Programs/Digital-Egypt-Strategy-for-Offshoring-Industry-2022-2026/Pages/default.aspx
[21] – https://linkdevelopment.com/newsroom/highlights/the-rise-of-egypt-as-a-global-it-offshoring-hub/
[22] – https://www.mondaq.com/outsourcing/1389136/the-legal-framework-for-outsourcing-to-egypt
[23] – https://www.outsource-consultants.com/blog/egypt-ancient-wonders-and-modern-bpo-opportunities/
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