AMMAN - The lack of a unified outsourcing strategy and an unclear tax code is holding Jordan back from becoming the "India of the Middle East", according to industry experts.
By most indicators, Jordan is primed to become a major outsourcing destination, with a skilled labour force and a strategic position as a technical and geographical transit point between continents, officials said.
The Kingdom's fledgling outsourcing industry could receive a heightened profile as companies are starting to steer away from the traditional powerhouses of India and the Philippines to set up shop in new areas such as Europe, Morocco and Egypt, they added.
According to the Ministry of Information and Communications Technology, although the shift away from traditional outsourcing destinations is a trend Jordan stands to benefit from, a lack of proper planning and promotion is holding the Kingdom back from reaching its true potential.
"These companies are heading to the East. This is our chance to attract them to Jordan, but we don't have a strategy in place," said a ministry source who preferred to remain unnamed.
Currently, seven companies work in the outsourcing industry in Jordan, employing some 1,500 Jordanians with total investments reaching $30 million, according to the ministry.
However, with proper marketing and planning, the industry could have a much greater impact, with the potential to create some 20,000 jobs within five years, the source said.
"Jordan has free market policies; it has the ultimate international connectivity routes; the country is stable and it has all the required infrastructure to become an outsourcing hub in the region," the ministry source added.
Jawad Abbassi, general manager of the Arab Advisers Group, said the country's services sector gives the Kingdom a competitive edge as a potential outsourcing destination.
"The Jordanian economy is heavily reliant on services and we are qualified to excel in it. If there is a clear, well-prepared strategy that enjoys the support of all stakeholders, we can get a greater share of the sector," he told The Jordan Times over the phone Sunday.
Abbasi pointed to the country's high number of IT graduates and an already skilled labour force, as an asset for growth in the "untapped" sector.
According to the ministry, around 6,000 Jordanians graduate annually from the country's universities in different IT specialties, with 11,334 Jordanians working in the sector.
Rami Atyat, an industry expert, said that despite modest gains in the sector, Jordan's outsourcing potential has been hurt by a "lack of awareness" of opportunities in the Kingdom.
"Companies are afraid of outsourcing some of their operations. They can save and make their work more efficient through outsourcing, but many companies are not fully aware of the potential benefits," he told The Jordan Times yesterday.
According to Atyat, another obstacle to attracting outsourced services to Jordan is an "inconsistent" tax system which "pushes investors away".
"Some investors were surprised after opening investments in the sector," he said.
"The lack of consistency shocked them." Sector data- Seven companies provide outsourcing services in Jordan, including two call centres
- Outsourcing industry investments in the Kingdom stand at about $30 million
- The sector employs 1,500-2,000 workers
- Some 6,000 Jordanians graduate in different IT-related specialties annually
- 11,334 Jordanians work in the IT sector
© Jordan Times 2011
