Smart Tunisia Your talent Hub For Europe, the Middle East and Africa London, October 20 th Raouf Mhenni, President
5 major industry drivers to be considered Need for Business Re-shoring / global Market New markets integration Near shoring delivery access & Niches Capabilities • • • • • Emergent Increasing Increasing Extension Newly, a key market focus on trend to and decision segments process review scalability of factor for and niches integration shoring global offshoring • Innovation and distribution delivery location driven by efficiency and consider capabilities : strategy • • business Outsourcing nearshoring a strategic Upcoming analytics as a driver of locations growth growing • and innovation & Several enabler market : • knowledge knowledge raised issues: Emergent Africa process dissatis- Hub & Spoke outsourcing faction, and Smart (KPO) rising costs, Shoring data models protection issues,.. )
New developed delivery models to be “Close to Customers”, gain capabilities and mitigate risks Multi-locations sourcing Same Time Service Need for model Zone continuity global delivery Front-Office / Back-Office Capabilities organization Access to Risk • Extension Talents pool mitigation and Hub & Spoke model with & skills scalability of regional Services Centres global delivery Multi- Process capabilities : Partnership with providers langages efficiency a strategic in a hybrid model skills growth enabler • Co-delivery models Emergent Provider Market Hub & Spoke expertise & access & and Smart Free Lance outsourcing capabilities proximity Shoring models Sub-contracting Source : Deloitte’s 2014 Global outsourcing and Insourcing survey
An ample room for industry growth at different maturity levels Practice maturity • From regional to global Shared service centers • Delivery capabilities extension • Sophistication • Market access • Large Set up of Shared service centres • Global delivery extension Corporations Global / Large local • Scale up Leading companies outsourcing Small & players Medium Size companies / Fast growing providers start ups Size
Switch from Cost - driven to Quality - driven attractiveness Low technicity / Added-value High technicity / Added-value Criteria importance Criteria importance Medium Low Medium High High Low Cost factors Quality / conditions factors Business environment Risk factors
New decision factors for BPO attraction Medium high Low BPO -high Talent pool availability - Key profiles technicity Infrastructures - Offices Langages skills Intellectual property protection Sector maturity / size IT Infrastructures – telecom / Cloud / … Quality BPM ecosystem Costs factors Market Business environment Quality of life Risk Tax rates Labour flexibility Labour cost- Operators Labour cost- Supervisor / manager Economic Risk Corporate Risk Energy risk
• X FOR SMART SHORING
Join an active offshoring ecosystem • A Leading position in BPO voice for French market • X • Recent development in Italian Market • Well established industry leaders with more than 10 Years presence • An active ecosystem to enhance sector maturity : clusters, business partners, ambassadors, industry network,… Employees in offshoring sector +35 000 2015
Available Offshore Ready Talents… 60 000 graduates 12 000 ICT 322 000 students per year graduates • X 6 000 graduates 9 000 Business 20 000 Engineers in Life Sciences & administration & scientists Healthcare Quality of Teaching Mathematics Availability of Engineers and and Science Scientists 1=poor, 7=excellent – among the best in the 1=Zero, 7=Widely available 5,2 4,8 4,8 4,7 4,6 4,7 4,7 4,4 4,5 4,4 4,2 4,2 4,2 4,1 4,0 2,4 Source: World Competitiveness Report: WEF 2015 Percentage of population with 35% tertiary education
A high-quality infrastructure 11 cyber parks “Leading country Spread over several regions and covering various specialties in the Southern 10 operational techno-parks Mediterranean region in term of Telecom Tunisia is the Second country in the southern Mediterranean region and Africa, 81 th among 143 infrastructure ” countries in the “Networked Business Index” published by the “Global Information Technology Networked Readiness Index-Global Report 2015” in Davos Information Technology Report
A world class infrastructures • Developed Label for Offices • 500 000 m 2 Offshore Ready Offices • X to be developed in the next 3 years • A mixed offer of: • Techno-parks , • Dedicated real estate offers for outsourcing • Individual real estate projects 8 € Rent cost per M 2
A strong legal framework for investment Investor protection index 6,0 6,0 6,0 6,0 5,3 5,0 4,7 3,7 Source: World Economic Forum 2014-2015 A new investment code which further encourages high added-value activities, and improves the business environment
A competitive destination • X most cost effective in north-Africa, 20-30% and 40-50% than Eastern Europe
Smart Tunisia a comprehensive incentive framework Ease of doing business ranking Tax regime for offshoring companies: Switzeland 20 Spain 33 Income tax of 10% for offshoring Luxembourg 59 Tunisia 60 companies instead of 25% Russia 62 • X Framework of double taxation Cyprus 64 Croatia 65 agreements Albania 68 Morocco 71 Egypt 72 Incentives granted by Smart Tunisia: Algeria 154 Mauritania 176 Support for the cost of trainings Source: Doing Business database 2015 and of new recruits, first time job seekers, of up to 5 000 TND for “Leader in North any new hire Africa in Business A recruitment allowance for the first seven consecutive years Climate” with a celling of 700 TND per World Bank Doing Business 2015 year for each first-time job applicant 5 000 TND Support to training for new hires
SMART TUNISIA : 3 strategic dimensions for Tunisian value proposition Attractive destination for knowledge intensive and high-added value activities Innovation 50000 EMEA Nearshore Jobs creation in the next 5 years Hub Talent hub for delivery capabilities and access to A Nearshore destination for services EMEA Market outsourcing (ITO,BPO, R&D & Knowledge) A leading offshoring destination for the French speaking market
They Trusted Tunisia BPO • X ITO R&D / Know- ledge ~ 3 200 foreign companies settled in 40 000 Tunisia (Manufacturing & Services)
Small but Smart Tunisia Ongoing stability & Democratic transition • X Favorable position for women that is unique in the Arab world (61% of graduates) Diversity of Cultural & Leisure events Presence of international schools and universities Healthcare system comparable to Western European countries Emergent & active civil society +30 000 More than 30 000 European expats
• X THANK YOU
Appendix
Our Tunisian Offer as Offshoring location • Same Time Zone as Central Europe Close to • Goof flights connection to Europe • Cultural proximity, Customer • Close collaboration with customers teams Talents (for digital projects) • Provide with added-value services and Hub knowledge • Be positioned in the Hub & Spoke model of Smart major players in EMEA • Address SME business EMEA Shoring • Co-deliver with other offshoring locations Market ( Indian / EMEA) • Develop expertise in 4-5 verticals / clusters • Nearshore Highly skilled Tunisians in Management and Talents business development positions of large corporates & SMEs hub in • Provide with a pool of skilled and offshore Innovation ready talents in Tunisia & Europe EMEA • Multi-languages skills • Emergent young entrepreneurship
A continued industry growth with challenging changes and large opportunities Offshoring location Delivery models Competition landscape strategies & key decisions factors Digital transformation Business models projects versus Global labor market ( Captive vs Outsourced industrial offshoring vs hybrid models) projects
Strategically located destination close to all major European capitals Same time Zone with Central • X Europe Stockholm 3h30 Good flights connection to London 2h50 major european cities Francfort 2h30 Paris 2h10 More than 40 flights a day to Milan 1h10 Madrid 2h00 Europe from Tunis Tunis Less than 3 H to reach almost 3 European cities
Productivity : 6-8 € per hour for added- value activities vs BPO 6 € per hour for traditional industrial • X offshoring ITO 30% cheaper than Morocco , 50% cheaper than Eastern Europe R&D / Know- Beginning Data scientist / Engineer Gross ledge monthly salaries: 900-1100 USD 7-12% Offshoring wage inflation rate
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