The Egyptian public calls for change. Protests all over the country force long-term President Hosny Mubarak to retreat from reelections and alter the country’s political climate. Revolutionary for Egypt’s citizens, the unrests in the North African nation and the government’s respond to it are a nightmare for the outsourcing sector.

The ongoing headlines on Egypt’s current situation are expected to undo long-lasting government efforts to transform the nation into a number one outsourcing location. Adding to the uncertain political situation in the country, and the resistance movement of the wider public, the government’s move to cut the internet access throughout Egypt last Thursday is the tip of the iceberg. In regard to outsourcing activities, demonstrations and disconnectedness imply serious distress for employees and disrupted service continuity.

The current situation does not only stop outsourcing companies, located in Cairo’s important IT hubs, to conduct their operations but it attracts more and more international criticism. US president Barak Obama already intervened and requested the government to give complete Internet access back to the Egyptian citizens as a basic right of freedom of speech and communication. 

The dramatic events are major drawback for the country’s huge investments in the outsourcing sector. Only a few months ago, Egypt’s Minister for information technology announced to invest $15 million in the domestic IT sector to boost the industry. Many reputable outsourcing companies such as Vodafone, Infosys and Wipro already took measures to either move their staff or their work out of the country.

Political or social events such as the terrorist attacks in India two years ago or the ongoing homicides in Mexico usually damage the security reputation of a country to an extend that buyers search for more secure options in other countries. In case of Egypt, staff security and operation continuity can at the moment not be guaranteed.