Jordan - Outsourcing Destination

JORDAN

How is the Jordan economy growing presently, and what are the projections for the immediate future?

How did the outsourcing industry evolve in Jordan and what is the expected growth in the industry?

Jordan has focused on creating a globally integrated economy that is knowledge-centric. Over the past two decades, prudent fiscal and monetary policies have helped in maintaining low inflation rates in the range of 3-5 percent and a stable currency. Exports in the country increased from USD 4.3 billion in 2005 to nearly USD 6.3 billion in 2009.

External debt during the period decreased from 56 to 21.7 percent. Gross official reserves at the end of 2009 stood at USD 10.8 billion.

Jordan has adopted aggressive and comprehensive development processes with active participation from the private sector which are targeted at creating an investment-friendly climate in the country. Many businesses are finding Jordan to be one of the most liberal and business-friendly economies in the region.

Jordan, as an outsourcing destination, started gaining prominence a decade ago. Key potentials for the growth of the industry such as a qualified workforce, competitive cost structures, a near-shore location and a convenient time zone were identified early on. Strong government backing was provided with world-class infrastructure, dedicated business parks and a liberal economic environment. Today Information and Communication Technology (ICT) and Information Technology Enabled Services (ITES) industry both contribute 14.3 percent

to the economy, and produce14,928 direct jobs. Exports have increased with an average of 343 percent in comparison to 2007, while investments increased by 164 percent. The industry is expected to grow to USD 250 million over the next three years, creating over 10,000 jobs. The outsourcing sector is further supported by Jordan being one of the initial countries in the region to establish a chapter of the International Association of Outsourcing Professionals (IAOP). This reflects on the growth of the country as an outsourcing destination and provides an extremely conducive environment for service providers and shared services organizations.

Jordan’s primary value proposition lies in its stable costs, and the high quality of its talent pool that is sustainable in the long-term.

What are the key factors that contribute into making the country an outsourcing destination of choice?

Together with attractive incentives, investor-friendly policies and excellent infrastructure, Jordan has everything required for a smart outsourcing destination. Jordan’s progressive government has also recently launched a new Development Zone strategy, encompassing multiple specialized zones at specific industries such as outsourcing. These development zones offer aggressive financial incentives to complement existing economic advantages of operating in Jordan.

Jordan has one of the most open telecommunication markets in the Middle East which is overseen by an independent regulator. Jordan is connected to the international network through various fiber

What are the infrastructure requirements of the industry and how well does the country meet these requirements?

Stable Costs and High Quality of Talent Pool is Jordan’s Primary Value Proposition

Interview of Country RepresentativeAdvertorial

Jordan is fast emerging as a destination of choice for outsourcing.

His Excellency Marwan Juma Minister of Information & Communications Technology

Mr. Aiman Mazahreh Chairman-Int@j

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optic links, in addition to satellite connectivity and terrestrial links with neighboring countries using modern fiber optic cable networks. Jordan has three main submarine cables that provide reliable international connectivity. In addition, Damamax is part of the Hong Kong Telecom Group PCCW’s Global Network, providing MPLS connectivity to more than 1,000 cities worldwide at very competitive prices.

The country has developed dedicated business parks within the Development Zones to nurture the growth of its priority sectors, such as ICT and BPO. These business parks offer plug-and-play office space, connectivity and services to local and international firms and a streamlined process of setting up operations.

People are a key asset in this industry. What measures are the industry and the

government taking to ensure quality of talent and how are you ensuring scalability of the available talent?

Jordan has a young population with nearly 70 percent under the age of 30. Jordan has one of the most successful education systems in the region with a literacy rate of 92 percent. The country is ranked first in the Middle East by the World Bank in terms of educational reforms. The government spends 20.6 percent of its public expenditure on the educational system. English is being taught at an early age in all schools, and modern technologies and methods have been introduced in the educational system to ensure technology proficiency.

There are a number of public-private initiatives that are focused on creating a knowledge-based economy in the country

by integrating technology in the classrooms. Intel Teach Initiative has been introduced as a worldwide program that focuses on using computer technology as a powerful teaching tool and enhances the creativity levels of both teachers and students. An MoU was signed between Microsoft and the Ministry of Education in 2003 that focuses on creating an Innovative Teachers Network (ITN), a School Technology Innovation Center (STIC) and an Education Support Center.

The government is providing computer labs in all public schools and universities as part of its comprehensive e-learning program. A country-wide broadband network connecting all public schools, universities, community access centers and community colleges is also being deployed.

Interview of Country RepresentativeAdvertorial

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Outsourcing Oasis of the Middle East Jordan, located where Africa, Asia and Europe converge, is ideally positioned as

an investment gateway to the Middle East.

The country’s robust economy, huge talent pool of human capital, temperate climate, convenient time-zone, state-of-the-art infrastructure and the ongoing economic liberalization procedures make it one of the most preferred destinations for outsourcing firms. Jordan’s immense human capital is one of the main drivers of growth in the region. A workforce, widely regarded as one of the most competitive and qualified in the region, has contributed to Jordan being ranked ninth in the 2009 Global Service Location Index (GSLI) by analyst firm AT Kearney. Strong work ethics and low attrition rates work in Jordan’s favor. Jordan invests more than 20.4 percent of its GDP on education and has more than 200,000 upcoming graduates to meet the demands of the fast growing outsourcing industry.

Jordan possesses world-class infrastructure in terms of Internet connectivity, telecommunications network as well as transport accessibility within the country and to international destinations. Dedicated business parks which boast of international standards of connectivity and services have been set up in Amman and Irbid to nurture the growth of the BPO industry in the country. These parks offer a streamlined regulatory environment and various tax benefits, coupled with high-end housing and associated facilities to attract and retain further investment in the outsourcing sector.

Jordan enjoys strong government support and reliable telecom connectivity through various international submarine cables for its ICT sector. This has made it the fastest growing sector in the Jordanian economy with an annual average growth rate of 25 percent. The ideal location of the country, investment-friendly economic climate and competitive rates contribute to the steady rise of Jordan as a preferred outsourcing location.

Currency: Jordanian Dinar

Main industries: Tourism, Banking & Financial Services, Engineering Services, Healthcare & Pharmaceuticals, Energy & Renewable Energy, Information & Communications Technology

Literacy rate: 92%

Languages spoken: Arabic (official), English, French, German,Armenian, Spanish

International airport: Amman (2), Aqaba

GDP growth (World Bank): 2.8% (2009)

thGlobal ranking: 9 in the 2009 Global Service Location Index by analyst firm AT Kearney

Quick look at the IT-BPO sector growth Total number of employees: 14,928Annual growth rate of IT/BPO sector: 25 percent

at a glance

Countries that outsource business to Jordan: Gulf Cooperation Council (GCC) countries, US, UK, Middle East and North Africa (MENA) region

Key verticals: Healthcare, Banking, Insurance, Telecom, Hospitality, Technology

Key services: Business Process Outsourcing, Information Technology Outsourcing, Knowledge Process Outsourcing, Shared Service Centers and contact centers

Some big players: Hewlett-Packard (HP), Dell Perot Systems, CISCO TAC, CrysTelCall, Extensya, Aspire Services, Microsoft, Oracle

Key competitive advantages: Robust Economy, Strategic Location and Convenient Time Zone, Immense Human Capital Resources, Investor-friendly Economic Environment

Main cities: Amman, Irbid

Emerging locations: Aqaba

Advertorial The Jordan Factfile


Now and Beyond

Jordan’s commitment to economic liberalization and its privatization program have been recognized by the World Bank. The World Bank lauded the privatization program as one of the most successful programs in the Middle East and North Africa (MENA) region.

Advertorial Opportunities and Future Potentials

Jordan has created a competitive, free market though a multi-pronged privatization approach. Today, the private sector plays a major role in spearheading growth and development in the country. Jordan is now seen as one of the most business-friendly economies in the region. The government has also taken significant steps to streamline regulations and decrease red tape.

Establishing business ventures in Jordan now takes less time than the average number of days in the MENA region.

The Development Zones established across the country in key business areas offer reliable infrastructure, specialized services, labor and resources to access major regional and global markets. At present, there are six zones that are operational throughout the country offering various investment opportunities. Jordan’s ICT sector today is the fastest growing sector offering more than 80,000 jobs with an annual average growth rate of 25 percent.

Jordan’s strength lies in the ICT, health and financial sectors. The growth of the outsourcing industry is expected to concentrate on these sectors by building vertical specialization in financial services, medical services, IT outsourcing, telecommunications and tourism services.

The future of the ICT sector looks rosy with the sector continuing its exponential growth. Jordan's National ICT Strategy for the next three years identifies the sub-sectors that are conducive for growth in the current economic situation in the country. Government initiatives to facilitate this growth are also laid out. The plans include developing a USD 3 billion ICT sector, provision of 35,000 jobs and increasing Internet penetration to 50 percent. Other ICT initiatives include provision of laptops to university students, encouraging women in technology programs and graduate internship programs.

Jordan is also taking necessary steps to enhance the existing infrastructure base in the country. In 2010, VTEL Jordan and Reliance Globalcom are establishing a link to the FALCON undersea cable through Aqaba which would triple the current bandwidth. It will be the first 'Terabit' cable landing in Jordan.

The future of outsourcing in Jordan promises to be bright with an industry poised for growth in all sectors. KPO and BPO operations are expected to head the growth ably supported by concerted efforts put in by the government and the private sector. An attractive business environment, combined with supportive government policies and world-class infrastructure, will continue to make Jordan one of the most sought after outsourcing locations in the MENA region.

The Face of Jordan


Contact info:Int@jTel: +962 6 5152322e-mail: [email protected]

Advertorial Testimonials

TestimonialsJordan is open for business with a very capable and sought after workforce, competitive cost structure, political stability, ease of access, robust ICT infrastructure, as well as a government that is fully committed to creating the right investment environment. These are only some of the factors that position Jordan as a great global destination of choice as well as the ideal access point and gateway to the Arab world.

His Excellency Mr. Marwan JumaMinister of Information and Communications Technology

Coming to Jordan opened our eyes to the country’s potential. The country’s will and

dedication has paid off, and businesses continue to succeed. Thanks to all the partners involved, the country continues to gain visibility as an outsourcing destination.

Som MittalPresident, National Association of Software and Services Companies (Nasscom)

BPO investors will find in Jordan a highly advanced legislative and infrastructure platform that supports their work and business endeavors. The Development Zones Commission (DZC) facilitates all necessary procedures and arrangements for the industry to operate and prosper in the

Development Zones.

His Excellency Dr. Bilal BashirChief Commissioner, Development Zones Commission

Jordan has enabled the ITO/BPO services industry and we run our operation supported by a strong legislative base, a sound telecom infrastructure and skilful human capital which really makes our business succeed. The government is involved in updating the skills of IT trainees to qualify them for our line of business.

Kaushal ShahManaging Director, Aspire

PublicationsIt looks like another little oasis of IT delivery is building up as the vast sands of the Middle East blow winds of new market opportunity; now Jordan joins the club, as it gets all set to woo the outsourcing industry.

At the Nasscom Summit 2009, foreign delegations of many hues and shades were seen exploring and selling business opportunities in the new world order that is shaping up for a post-recession scenario. We could see delegates from Jordan too. They were not only prepared for a strong competitive pitch, but also had large spoonfuls of the pudding’s proof up their sleeve.

As to the cultural milieu, Jordan has an open and welcoming arm. On the infrastructure side, areas like powers, roads and buildings are positive. It has already been recognized on the eco-friendly distinction, where the example of Amman, a building zone, is cited as an example, and an award-winning case in masterful city planning.

~ Global Services Magazine

To highlight the benefits, Jordan’s geographic and geopolitical positioning

have rendered it definitive advantages, including a favorable time zone, proximity to continental Europe and the country's perception as a stable oasis in a stormy, but vital, region.

Enthusiasts also point out that Jordanians can offer relatively low compensation costs, as well as exposure to English languages by virtue of its strong focus on education, especially at the tertiary level.

~ Jordan Business: Jordanian Magazine

Quotes from ReportsJordan at the ninth place is another top performer as it has solid capabilities in IT and is home to numerous successful outsourcing companies that compete internationally. It has also one of the region’s most favorable business environments.

~ A.T Kearney Report 2009

Currently, there are several contact center operations in Jordan serving clients domestically and offshore, across a variety of vertical markets. In addition, the availability of

multi-lingual agents with university education, coupled with excellent language skills has been a compelling reason for this growth.

It is clear that from the standpoint of telecommunications, Jordan has made significant strides over the past decade. In addition to the efficiencies still being realized by the deregulation of the telco sector in 2005, Jordanian telecom has invested over USD 400 million in recent years in a number of technology solutions

designed to make Jordan more accessible to the rest of the world.

Jordanian telecom has invested over USD 400 million in recent years in a number of technology solutions designed to make Jordan more accessible to the rest of the world.

~ Datamonitor
