Smart Tunisia Your talent Hub For Europe, the Middle East and - - PowerPoint PPT Presentation

Smart Tunisia

Your talent Hub For Europe, the Middle East and Africa

London, October 20th

Raouf Mhenni, President

5 major industry drivers to be considered

Business integration

• Increasing

focus on process integration and efficiency

• Outsourcing

as a driver of innovation & knowledge

Re-shoring / Near shoring

• Increasing

trend to review shoring distribution and consider nearshoring locations

• Several

raised issues: dissatis- faction, rising costs, data protection issues,.. )

Need for global delivery Capabilities

• Extension

and scalability of global delivery capabilities : a strategic growth enabler

• Emergent

Hub & Spoke and Smart Shoring models

Market access

• Newly, a key

decision factor for

• ffshoring

location strategy

• Upcoming

growing market : Africa

New markets & Niches

• Emergent

market segments and niches

• Innovation

driven by business analytics and knowledge process

• utsourcing

(KPO)

New developed delivery models to be “Close to Customers”, gain capabilities and mitigate risks

Source : Deloitte’s 2014 Global outsourcing and Insourcing survey

Need for global delivery Capabilities

• Extension

and scalability of global delivery capabilities : a strategic growth enabler

• Emergent

Hub & Spoke and Smart Shoring models

 Multi-locations sourcing model  Front-Office / Back-Office

• rganization

 Hub & Spoke model with regional Services Centres  Partnership with providers in a hybrid model  Co-delivery models  Free Lance outsourcing  Sub-contracting

Same Time Zone Access to Talents pool & skills Multi- langages skills Service continuity Risk mitigation Process efficiency Provider expertise & capabilities Market access & proximity

Fast growing start ups Large local companies Small & Medium Size companies / providers Large Corporations Global / Leading

• utsourcing

players

An ample room for industry growth at different maturity levels

Practice maturity Size

• From regional to global

Shared service centers

• Delivery capabilities

extension

• Sophistication
• Market access
• Set up of Shared service centres
• Global delivery extension
• Scale up

Switch from Cost - driven to Quality - driven attractiveness

Cost factors Business environment Quality / conditions factors

Low Medium High High Medium Low Criteria importance Criteria importance

Low technicity / Added-value High technicity / Added-value

Risk factors

Quality Costs factors Business environment

Talent pool availability - Key profiles Intellectual property protection Infrastructures - Offices Sector maturity / size Labour cost- Operators Labour flexibility IT Infrastructures – telecom / Cloud / … Quality of life Market Tax rates Low Medium high BPM ecosystem

BPO -high technicity

New decision factors for BPO attraction

Risk

Labour cost- Supervisor / manager Langages skills Economic Risk Corporate Risk Energy risk

• X

FOR SMART SHORING

• X

Employees in offshoring sector 2015

Join an active offshoring ecosystem

+35 000

• A Leading position in

BPO voice for French market

• 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,…

• X

Percentage of population with tertiary education

Available Offshore Ready Talents…

35%

Quality of Teaching Mathematics and Science

1=poor, 7=excellent – among the best in the

Availability of Engineers and Scientists

1=Zero, 7=Widely available

2,4 4,1 4,2 4,4 4,5 4,7 4,7 5,2 4,0 4,2 4,2 4,4 4,6 4,7 4,8 4,8

Source: World Competitiveness Report: WEF 2015

322 000 students 60 000 graduates per year 12 000 ICT graduates 9 000 Business administration 6 000 graduates in Life Sciences & Healthcare 20 000 Engineers & scientists

A high-quality infrastructure

Tunisia is the Second country in the southern Mediterranean region and Africa, 81th among 143 countries in the “Networked Business Index” published by the “Global Information Technology Report 2015” in Davos 11 cyber parks

Spread over several regions and covering various specialties

10 operational techno-parks

“Leading country in the Southern Mediterranean region in term of Telecom infrastructure”

Networked Readiness Index-Global Information Technology Report

• X

Rent cost per M2

A world class infrastructures

8€

• Developed Label for Offices
• 500 000 m2 Offshore Ready Offices

to be developed in the next 3 years

• A mixed offer of:
• Techno-parks ,
• Dedicated real estate offers for
• utsourcing
• Individual real estate projects

A strong legal framework for investment

Investor protection index

A new investment code which further encourages high added-value activities, and improves the business environment 3,7 4,7 5,0 5,3 6,0 6,0 6,0 6,0

Source: World Economic Forum 2014-2015

• X

most cost effective in north-Africa, and 40-50% than Eastern Europe

A competitive destination

20-30%

• X

Support to training for new hires

Smart Tunisia a comprehensive incentive framework

5 000 TND

• Tax regime for offshoring companies:
• Income tax of 10% for offshoring

companies instead of 25%

• Framework of double taxation

agreements

• Incentives granted by Smart Tunisia:
• Support for the cost of trainings

and of new recruits, first time job seekers, of up to 5 000 TND for any new hire

• A recruitment allowance for the

first seven consecutive years with a celling of 700 TND per year for each first-time job applicant

176 154 72 71 68 65 64 62 60 59 33 20 Mauritania Algeria Egypt Morocco Albania Croatia Cyprus Russia Tunisia Luxembourg Spain Switzeland

Source: Doing Business database 2015 Ease of doing business ranking

“Leader in North Africa in Business Climate”

World Bank Doing Business 2015

50000

Innovation EMEA Hub Nearshore

• Attractive destination for

knowledge intensive and high-added value activities

• Talent hub for delivery capabilities and access to

EMEA Market

• A leading offshoring destination for the French

speaking market

• A Nearshore destination for services
• utsourcing (ITO,BPO, R&D & Knowledge)

Jobs creation in the next 5 years

SMART TUNISIA : 3 strategic dimensions for Tunisian value proposition

• X

~ 3 200 foreign companies settled in Tunisia (Manufacturing & Services)

They Trusted Tunisia

40 000

BPO ITO R&D / Know- ledge

• X

More than 30 000 European expats

Small but Smart Tunisia

+30 000

• Ongoing stability & Democratic

transition

• Favorable position for women that

is unique in the Arab world (61%

• f graduates)
• Diversity of Cultural & Leisure

events

• Presence of international schools

and universities

• Healthcare system comparable to

Western European countries

• Emergent & active civil society

• X

THANK YOU

Appendix

• Highly skilled Tunisians in Management and

business development positions of large corporates & SMEs

• Provide with a pool of skilled and offshore

ready talents in Tunisia & Europe

• Multi-languages skills
• Emergent young entrepreneurship

Our Tunisian Offer as Offshoring location

Close to Customer Smart Shoring Talents hub in EMEA

• Same Time Zone as Central Europe
• Goof flights connection to Europe
• Cultural proximity,
• Close collaboration with customers teams

(for digital projects)

• Provide with added-value services and

knowledge

• Be positioned in the Hub & Spoke model of

major players in EMEA

• Address SME business
• Co-deliver with other offshoring locations

( Indian / EMEA)

• Develop expertise in 4-5 verticals / clusters

Talents Hub EMEA Market Nearshore Innovation

A continued industry growth with challenging changes and large opportunities

Business models ( Captive vs Outsourced vs hybrid models) Digital transformation projects versus industrial offshoring projects Global labor market Competition landscape Delivery models Offshoring location strategies & key decisions factors

• X

Less than 3 H to reach almost European cities

Strategically located destination close to all major European capitals

3

Paris 2h10 London 2h50 Milan 1h10 Stockholm 3h30 Tunis Francfort 2h30 Madrid 2h00

• Same time Zone with Central

Europe

• Good flights connection to

major european cities

• More than 40 flights a day to

Europe from Tunis

• X

Offshoring wage inflation rate

7-12%

30% cheaper than Morocco , 50% cheaper than Eastern Europe Productivity : 6-8 € per hour for added- value activities vs 6€ per hour for traditional industrial

• ffshoring

Beginning Data scientist / Engineer Gross monthly salaries: 900-1100 USD

BPO ITO R&D / Know- ledge

Quality Costs factors Business environment

Talent pool availability ( Engineers & Scientists) Intellectual property protection Quality of education system / universities Sector maturity & Similar existing activities Labor cost- Engineers - Senior profile Labor flexibility Clusters / innovations ecoystems Quality of life Infrastructures Tax rates Low Medium high Knowledge of the location

R&D

R&D decision factors mainly based on knowledge ecosytem

Labor cost- Engineers - junior profile

Risk

Economic Risk Corporate Risk Energy risk

Rising destinations Asian challengers ( e.g. Sri Lanka) 2nd & 3rd tier cities Eastern Europe ( Bulgaria, Serbia,..) Sub-Saharian Africa locations ( Senegal / Ivory Coast) Central & Eastern Africa (Ghana / Kenya) India / Philippines Central & Eastern Europe 1st tier Cities / Hotspots Northern Africa Mauritius / South Africa

An increasingly changing competition in EMEA outsourcing market

Practice maturity

• Leading destinations
• Mature industry
• Emergent locations (Challengers)
• Social pressure leading to On

Shore locations

• Upcoming markets
• Start up locations in
• ffshoring industry /

Niches

• X

Targeted labels

…to extend your delivery capabilities

100 000

• Several initiatives to enhance Talents Pool :
• Co-graduation with major international universities
• Specialized training centers (aircraft maintenance, training for call

center agents, etc.)

• 100 000 Certifications program
• 5000 Managers program
• TACT / ESPRIT training program developed for BPO / ITO industry
• Launch of Conversion program : 25 000 reskilled talent pool
• More than 30 000 researchers in ~700 laboratories and research units

Highest level of operational French Outside countries with French as mother tongue: 28% of the population is fluent in French Generalized English Taught in schools starting from the age of 8 Language Training Certified and provided by cultural centers: German, Spanish, Italian, etc. ..

Some Smart Shoring Cases

>75 % of the offshoring jobs created by Top 50 players only

75%

• Evolution from BPO to ITO
• Captive SAP delivery centre working

closely with USA centr

• Talents pool extension model

( Multi-locations projects resources)

• Project driven by Tunisian Expatriate

in France

• 260 engineers
• Talents pool extensions with

Tunisian resources

• Extension to IT support service to

French site

• Developed training courses with

universities

• Actia group present in Tunisia with production

and R&D activities

• 250 FTEs reached in 5 Years, Planned 400 FTEs

extensions in 3 Y

• Reference centre in Actia group
• Offshore Design center of INTEL for embedded

systems

• 170 FTEs
• Document Management outsourcing
• Management of Complex contracts not

addressed by Vitenam & Mauritius Sites

• Potential extensions BPO & ITO
• R&D Center specialized in E-Book industry
• Design , testing and implementation of

technology systems and platforms related to E-Book

• Wide range of technologies
• 35 engineers R&D center rapidly set up
• Smart Shoring : 2 sites in France,

4 sites in Tunisia

• Serve Canadian & French

market

• 1500 FTEs
• 24/7 service center
• Potential extension of 900

positions in 3Y Recent implementation of SME in Tunisia as entry point to Europe (targeting in a part major Fench Retail players) DigitalMania won the first place of the PITME program. PITME welcomes young MENA entrepreneurs, and facilitate their immersion in the capital of global innovation, the famous Silicon Valley, San Francisco.