Outsourcing services has been the talk of the town for a very long time now. Outsourcing wasn’t formally introduced till later in 1989. With time, outsourcing became common, however, it started trending around the same time as the Pandemic in 2020.
People started talking about Outsourcing such as hiring a virtual assistant. At first, they worried about the cost of a virtual assistant and if its benefits outweighed its disadvantages. As the business world kept talking about it, these questions reduced by far.
In this article, we will be rummaging through the history of Accounting services in Egypt. we will list 10 accounting outsourcing companies there, and why you should outsource accounting services with BPO companies in Egypt.
The Rise of Accounting Outsourcing Services in Egypt
In recent years, Egypt has emerged as a pivotal player in the global business services landscape, particularly in the realm of accounting outsourcing. This upward trajectory underscores Egypt's growing significance and competitive edge in the outsourcing sector, drawing attention from businesses worldwide seeking cost-effective and efficient service solutions.
Historical Context and Growth Trajectory
Egypt's journey in the outsourcing industry has been marked by impressive growth, especially highlighted by a 54.2% surge in the fiscal year 2022-2023. This expansion saw the sector's added value increase from $2.4 billion to approximately $3.7 billion.
Such growth is not isolated. The country's information technology exports also recorded a 26.5% rise, reaching $6.2 billion. This upward trend signifies Egypt's strategic role in the global outsourcing arena and its potential for future development.
Factors Contributing to its Rise
1) Government and Private Sector Investments
One of the pivotal factors driving Egypt's rise in accounting outsourcing is the robust investment from both the government and the private sector.
For the fiscal year 2023-2024, the Egyptian government has allocated EGP 83.3 billion ($1.73 billion) towards communications and information technology, marking a 48.8% increase from the previous year.
This financial backing underscores Egypt's commitment to fostering a conducive environment for outsourcing operations, attracting numerous foreign and local entities.
2) Strategic Agreements
Since November 2022, Egypt has signed 74 agreements with various international and local companies to cement its status as a global outsourcing hub. These agreements aim to establish 85 outsourcing centers, providing employment for 60,000 specialists.
This strategic collaboration not only boosts employment but also enhances Egypt's service delivery capabilities in the outsourcing sector.
3) Digital Egypt Strategy for Offshoring Industry 2022-2026
The Digital Egypt Strategy for Offshoring Industry 2022-2026 is another cornerstone that supports the country's outsourcing ambitions. This comprehensive plan aims to triple digital export revenues with a compound annual growth rate of 19% over the strategy's duration.
By focusing on digital transformation, Egypt aims to streamline its business processes and enhance its competitive position in the global market.
4) Expansion of Outsourcing Centers
The rise in the number of outsourcing centers is another indicator of Egypt's burgeoning outsourcing industry. The number of centers increased from 160 to 199 in FY23, reflecting a 24.4% growth.
This expansion not only meets the rising demand for outsourcing services but also signifies Egypt's infrastructure readiness to support large-scale outsourcing operations.
Top 10 Accounting Outsourcing Companies in Egypt
Consultative Group-Ahmed Mamdouh & Co. was founded in 2000 which in 2001 enhanced its success by joining Kreston International to become Kreston CG-Ahmed Mamdouh & Co.
By joining with Kreston International Network, the firms gained access to over 170 firms in approximately 120 countries.
Location: Cairo, Egypt
Company Employee Size: 50 - 249
Pricing: Available Upon Request
Rating: N/A
2. Egybell
Egybell was founded in 2015 and has been growing since. For example, Accounting outsourcing services was introduced into the firm in 2017 while IT Solutions was introduced in 2018.
Egybell have over 1,247 employees, working with more than 72 clients. It is located in Maadi, Cairo, Egypt.
Location: Cairo, Al Qahirah, Egypt
Company Employee Size: 1,001 - 5,000
Pricing: Available Upon Request
Rating: 4.6
3. WEmng
Founded in 2019, WEmng team offers HR services, domestic and international business support, and IT solutions.
They claim to provide high-quality, cost-effective services by understanding their clients' specific needs. Outsourcing these processes can benefit businesses by improving efficiency and reducing costs.
Located in Cairo, WEmng has 20 to 49 employees working efficiently, providing quality standard experience to their clients.
Location: Cairo, Egypt
Company Employee Size: 20 - 49
Pricing: Available Upon Request
Rating: 3.3
4. Kudos Egypt
Founded in 2022 by Mr. Mohamed Atef, Kudos Egypt is a member firm of Kudos International which provides various services in the accounting field. It is global network of professionals focused on providing high-quality services with exceptional care.
Kudos Egypt has 11-50 experts working in their company and 32 associated members. They offer long-term support and global connectivity to their clients.
Location: Giza, Egypt
Company Employee Size: 11 - 50
Pricing: Available Upon Request
Rating: N/A
5. Accace
Accace started as a small accounting firm in 2006 but quickly expanded to meet the growing demand for comprehensive business process outsourcing (BPO) services.
Location: Heliopolis Cairo, Egypt
Company Employee Size: 501 - 1,000
Pricing: Available Upon Request
Rating: 4.2
MES is an Egyptian tax advisory firm established in 1997. They have combined their local expertise with GCC knowledge to expand their services and increase their market share in the GCC region.
They provide various services including Accounting Support & Secondment Services which offers a full range of accounting solutions tailored to your specific business needs. The services include management and financial reporting, staffing with qualified professionals, expert tax advice, and more.
Our commitment is to provide efficient and reliable solutions that help you achieve your business goals
Location: Egypt
Company Employee Size: 51 - 200
Pricing: Available Upon Request
Rating: N/A
7. BDO Esnad
BDO Esnad is an Egyptian company specializing in business process outsourcing (BPO) services. Founded in 2008, their goal is to help organizations reduce costs and improve performance.
As part of the BDO Egypt network, they benefit from the expertise of BDO Khaled & Co., a leading accounting and tax firm with offices in Cairo and Alexandria since 1985. Their global reach extends to the BDO International network, one of the world's largest professional service firms with over 1,400 offices in 154 countries and 64,300 employees worldwide.
As the world's fifth-largest accounting and consulting organization, BDO offers a wide range of services and resources to support our clients' success.
8. Crowe Egypt
Crowe Dr. Abd El Aziz Hegazy & Co. is a leading accounting firm in Egypt, established in the early 1950s. As a member of Crowe Global, a global network of professional services firms, they offer a wide range of services to clients across various industries.
With around 51 - 200 dedicated professionals, they provide comprehensive solutions in audit and assurance, tax, accounting, corporate finance, and consulting. Their team's expertise and commitment to quality ensure that clients receive the highest level of service.
Location: Giza, Egypt
Company Employee Size: 51 - 200
Pricing: Available Upon Request
Rating: N/A
9. FlairsTech
Founded in 2018, Flairstech is a global IT and software solutions provider with over 1,000 employees serving thousands of clients worldwide. We offer a range of services, including software development, BPO, customer support, and digital solutions.
10. eBSEG
Established in 2000 with around 50-249 service providers, eBSEG CEEP is a patented, all-in-one platform that seamlessly integrates customer experience and engagement across all channels for financial institutions.
This unique solution addresses the challenges of digital omnichannel platforms, providing a unified approach for banking, insurance, wealth management, and other financial services.
Location: Cairo, Egypt
Company Employee Size: 50 - 249
Pricing: Available Upon Request
Rating: N/A
Services Offered by Accounting Outsourcing Firms
Bookkeeping Services: Maintaining up-to-date financial records and providing customizable reports to support business decision-making.
Payroll Management: Calculating employee earnings, managing payroll activities, and ensuring compliance with tax and employment laws.
Financial Reporting: Preparing financial reports in accordance with GAAP and IFRS standards.
Tax Preparation and Filing: Assisting with tax compliance and filing necessary returns.
Cloud-Based Services: Offering remote bookkeeping and accounting services through cloud solutions, ensuring flexibility and control over data.
Business Consulting and Strategic Advisory: Providing expert advice to help businesses develop strategies for growth, efficiency, and competitive advantage.
Industry-Specific Services and Solutions: Tailoring services to meet the unique needs of various industries, such as retail, manufacturing, healthcare, and more, ensuring specialized support and insights.
Best Practices for Accounting Outsourcing Services in Egypt
Choosing the right accounting outsourcing partner in Egypt is crucial for the success of your business. Here are some key factors to consider:
Experience and Expertise: Look for a partner with a proven track record in handling accounting tasks similar to yours. Ensure they have experience with Egyptian accounting standards and regulations.
Industry Specialization: If your business operates in a specific industry (e.g., manufacturing, healthcare), consider a partner with industry-specific knowledge to provide tailored solutions.
Data Security: Accounting outsourcing involves handling sensitive financial data. Verify that the partner has robust data security measures in place.
Scalability: Choose a partner that can accommodate your business's growth and changing needs. They should be able to scale their services up or down as required.
Communication Channels: Effective communication is essential for a successful outsourcing relationship. Ensure that the partner has clear communication channels in place and is responsive to your queries.
Establishing Clear Communication Channels
Regular Meetings: Schedule regular meetings or calls to discuss progress, address issues, and ensure alignment between your business and the outsourcing partner.
Project Management Tools: Utilize project management tools to track tasks, deadlines, and progress. This can help improve efficiency and transparency.
Dedicated Contact Person: Assign a dedicated contact person within your organization to liaise with the outsourcing partner. This will streamline communication and ensure accountability.
Implementing Robust Data Security Measures
Data Encryption: Ensure that all sensitive financial data is encrypted both in transit and at rest.0
Access Controls: Implement strict access controls to limit who can access your data and what they can do with it.
Regular Security Audits: Conduct regular security audits to identify and address any vulnerabilities.
Disaster Recovery Plan: Have a comprehensive disaster recovery plan in place to ensure that your data can be recovered in the event of a data breach or other incident.
By following these best practices, you can select the right accounting outsourcing partner and establish a successful relationship that benefits your business.
Challenges You Might Face!
While outsourcing accounting services to Egypt can offer significant benefits, it's essential to be aware of the potential challenges that may arise. Addressing these challenges proactively can help ensure a successful outsourcing relationship.
Data Confidentiality
Data Privacy Laws: Ensure that your outsourcing partner is compliant with Egypt’s laws and regulations and has robust data security measures in place.
Data Breach Risk: There is always a risk of data breaches, even with the best security measures. Develop a contingency plan to address such incidents promptly.
Communication Gaps
Language Barriers: While many Egyptians speak English, there is always a risk of language barriers. Use clear communication channels and consider using professional translation services if necessary.
Time Zone Differences: The time zone difference between Egypt and many Western countries can make real-time communication challenging. Establish effective communication protocols and consider using collaboration tools.
Cultural Differences
Business Etiquette: Understanding Egyptian business etiquette can help build trust and foster effective relationships. Research cultural norms and customs.
Work Ethic: While Egyptian work ethics are generally strong, there may be differences in approach or pace compared to other cultures. Clearly communicate expectations and provide necessary training.
Control Over Operations
Loss of Control: Outsourcing can lead to a loss of direct control over accounting operations. Establish clear guidelines and performance metrics to maintain oversight.
Dependency: Overreliance on an outsourcing partner can create vulnerabilities. Consider having backup plans or contingency measures in place.
By addressing these challenges proactively and establishing clear communication channels, quality control measures, and data security protocols, businesses can mitigate risks and reap the benefits of accounting outsourcing services in Egypt.
Conclusion
By outsourcing your accounting services to Egypt, you're not just reducing costs; you're investing in a strategic partnership that can drive growth and efficiency. With Egypt's skilled talent pool, competitive pricing, and focus on innovation, you can streamline your operations, gain invaluable financial insights, and position your business for success.
Don't miss out on this transformative opportunity. Contact a leading accounting outsourcing firm in Egypt today and start reaping the rewards.