MENA Talent Map

In a fast-changing world with workplaces in flux and vigorous new workforces emerging, enormous opportunities arise. Job outsourcing is among the richest.

The outsourcing practice began with large corporations in developed countries outsourcing non-core and basic functions – call centers, payroll, etc. – to developing countries. It helped businesses reduce costs and focus on core differentiators. As organizations grapple with seismic shifts driven by nonstop technological innovation, pandemic- and climate-driven disruptions, and geopolitical upheaval, the job outsourcing market is reconfiguring in parallel. No longer just in the province of non-core functions, outsourcing is increasingly embraced as a key solution to critical talent shortages. It is tapping into new sources of sophisticated labor and core functional expertise along the value chain.

So, what happened? As the workforce evolved, so too did outsourcing. Digitalization has disrupted the workplace, creating jobs while eroding others, and transforming long-standing labor market paradigms. This has led to the diminishing of human involvement in mainstream jobs; for example, jobs like telephone operator and data entry typist are giving way to sophisticated AI and machine learning tools. In parallel, the demand for other, more sophisticated jobs has soared, creating a global talent shortage, and recasting outsourcing as a platform for accessing highly skilled talent.

The future of job outsourcing is evolving. It will continue to expand into more sophisticated jobs, maintain coverage of intermediary ones, and reduce emphasis on mainstream jobs, especially those most affected by digitalization and automation.

As outsourcing evolves, so do the opportunities it offers. Hence, this study examines the opportunities for six countries in the Middle East and North Africa (MENA) region – Lebanon, Jordan, Iraq, Egypt, Morocco, Tunisia – to supply talent for outsourced jobs, promoting skill development, employment, and economic stability.

With its highly qualified, multilingual, and cost competitive labor force, Lebanon has great potential to become a talent supply hub for offshore work. However, challenges, including political and economic risks, may threaten its outsourcing prospects. Lebanon is well positioned to supply talent in six areas: customer relationship management services; software/ applications development and integration; engineering design and consulting services; marketing services; business consulting and market research services; and telemedicine and remote education.

Jordan also shows excellent potential to grow into a talent supply hub for offshore jobs, with its highly qualified labor force, attractive market environment, advanced telecom infrastructure, and favorable regulatory landscape. It nevertheless faces challenges, including the absence of data protection laws. Jordan is well positioned to supply talent in six areas: customer relationship management services; software/ applications development and integration; engineering design and consulting services; finance and accounting services; business consulting and market research; and telemedicine and remote education.

Iraq could evolve into a talent supply hub for basic offshore jobs, leveraging its cost competitive labor force, operational Special Economic Zones, and low corporate tax rates. However, critical challenges, such as political risks and lagging telecom and physical infrastructures, threaten to undermine its outsourcing prospects and lower the workforce’s attractiveness. Iraq is positioned to supply talent in four areas: customer relationship management; human resource management; content and document processing; and IT consulting and support.

Egypt has strong potential to become a talent supply hub for offshore jobs, thanks to a qualified and cost-competitive labor force, attractive market environment, and digital and physical infrastructure. Such ambitions would be challenged, however, by limited government involvement in facilitating set-up of outsourcing businesses. Egypt is well positioned to supply talent in six areas: customer relationship management; engineering design and consulting services; software/ applications development and integration; finance and accounting services; media services; and marketing services.

Its well-established outsourcing ecosystem, attractive market environment, and strong digital and physical infrastructure give Morocco excellent potential to grow as a talent supply hub for offshore jobs. However, it will need to address challenges, including limited labor availability and labor cost competitiveness. Morocco is well-positioned to supply talent in five areas: customer relationship management; human resource management; software/ applications development and integration; business consulting and market research; and legal services.

Finally, Tunisia also exhibits great potential to accelerate its current momentum and become a talent supply hub for offshore jobs. It boasts a multilingual and cost-competitive labor force, well-established outsourcing ecosystem, attractive regulatory landscape, and developed digital and physical infrastructure. However, challenges including political and economic risks must be managed to safeguard the country’s outsourcing prospects. Tunisia is well positioned to supply talent in four areas: customer relationship management; content and document processing; software/ applications development and integration; and engineering design and consulting services.