Is Offshoring the Solution for Developing Tunisia's ICT Sector and Employment?
7 July 2013
Read by 1776 persons
For several years, successive Tunisian governments have considered offshoring and nearshoring as a panacea for the development of the ICT sector and employment in Tunisia. Offshoring is certainly a major source of employment, but its development must be approached cautiously, both with regard to the targeted countries and with regard to the local industrial and service fabric.
Indeed, for many countries, if not all, offshoring or nearshoring is synonymous with relocation and the transfer of jobs from Northern countries to Southern countries. These countries will then seek to prevent their economic operators from resorting to offshoring, or even to penalize economic operators resorting to offshoring, and many of us still remember Sarkozy's attempt to prevent the establishment of call centers outside France by requiring them, among other things, to mention the location of the call center in each communication.
Moreover, the companies that resort to offshoring do so in a logic similar to that of the garment companies that benefited in Tunisia from law 72, which did employ personnel, but brought no other additional value added to Tunisia, and which, once they found a cheaper destination, left Tunisia very simply, taking their equipment with them, laying off their personnel and abandoning their subcontractors.
Therefore, Tunisia must implement sectoral policies and strategies, as well as employment policies and strategies, that differ from those implemented by previous governments, because the environment is changing and the conditions are no longer the same.
However, this cannot be done without the incumbent government starting to think outside the box and to design and define innovative strategies that differ from previous ones; strategies which, for some, have undoubtedly proven their worth at a given time but have become exhausted over time.
In order to mitigate the risks of offshoring and nearshoring, Tunisia would benefit from developing and promoting the concept of co-location instead of focusing its efforts on offshoring, which is synonymous with relocation.
Tunisia can provide France with ICT professionals
In what follows, we will take the example of France, since these days François Hollande is visiting our country, while knowing that this example can also be applied to other countries.
According to Pôle Emploi, France has a confirmed need for 50,000 ICT professional jobs for 2013 alone; these jobs being 99% "permanent contracts". And according to other sources, this need would reach approximately 450,000 jobs over a four-year period. If this shortage of ICT professionals is not filled, it will have negative consequences on the French ICT sector and could even have a negative impact on the French economy in general. To address this situation, France plans to resort to immigration.
In this context, the opportunity that arises for Tunisia is co-location, which consists, as its name suggests, in co-locating French companies between France and Tunisia by creating mixed Tunisian-French structures in Tunisia. This will allow French companies to address the lack of resources and ICT professionals by recruiting in Tunisia while keeping these resources in Tunisia and not making them emigrate, the solution considered so far.
In short, co-location can benefit both France and Tunisia, making it a win-win solution that should be of interest to both countries.
For example, we will mention the following advantages.
For France, co-location will make it possible to address the shortage of resources and ICT professionals and to meet the growing demand of the French and European markets through their establishment in France and Tunisia. Taking advantage of Tunisia's competitive costs, co-location will allow French ICT companies to improve their competitiveness by reducing their operating costs, which will allow them to maintain, or even improve, their positioning in their traditional markets.
This co-location finds its essence within the framework of a partnership with Tunisian ICT companies to allow French companies to benefit from Tunisian know-how in terms of management of Tunisian skills, relations with the administration, etc. However, this partnership will facilitate access for French ICT companies to new markets such as the North African, Middle Eastern and Sub-Saharan African markets.
Finally, this co-location will allow France to avoid the pitfalls of emigration, even if those concerned are higher education graduates in our case. It will also contribute to Tunisia's economic development and, above all, to better political stability in the south of the Mediterranean.
For Tunisia, this will allow the creation of local jobs and not the reduction of unemployment through emigration and the flight of skills; a better socio-economic impact through indirect jobs; a contribution to economic development and political stability as well as an increase in exports.
Co-location is not job relocation...
Finally, co-location is essentially different from relocation, offshoring or nearshoring. Its objective is in no way to relocate jobs from France to Tunisia, quite the contrary. It is about enabling French companies to maintain and develop themselves in their traditional markets by improving their competitiveness and to be able to more easily penetrate new markets through their Tunisian partners.
Co-location is also a source of lasting partnerships between French and Tunisian companies, and it is different from simple partnerships established to meet specific markets, even if these partnerships have been the subject of letters of intent signed with great fanfare.
It is only through win-win models that the establishment of foreign companies in Tunisia will be sustainable. Otherwise, the jobs created will only be ephemeral and the return to square one inevitable.
Mustapha Mezghani.
Webmanagercenter.com
Published on July 4, 2013.
Posted online on July 7, 2013.
Indeed, for many countries, if not all, offshoring or nearshoring is synonymous with relocation and the transfer of jobs from Northern countries to Southern countries. These countries will then seek to prevent their economic operators from resorting to offshoring, or even to penalize economic operators resorting to offshoring, and many of us still remember Sarkozy's attempt to prevent the establishment of call centers outside France by requiring them, among other things, to mention the location of the call center in each communication.
Moreover, the companies that resort to offshoring do so in a logic similar to that of the garment companies that benefited in Tunisia from law 72, which did employ personnel, but brought no other additional value added to Tunisia, and which, once they found a cheaper destination, left Tunisia very simply, taking their equipment with them, laying off their personnel and abandoning their subcontractors.
Therefore, Tunisia must implement sectoral policies and strategies, as well as employment policies and strategies, that differ from those implemented by previous governments, because the environment is changing and the conditions are no longer the same.
However, this cannot be done without the incumbent government starting to think outside the box and to design and define innovative strategies that differ from previous ones; strategies which, for some, have undoubtedly proven their worth at a given time but have become exhausted over time.
In order to mitigate the risks of offshoring and nearshoring, Tunisia would benefit from developing and promoting the concept of co-location instead of focusing its efforts on offshoring, which is synonymous with relocation.
Tunisia can provide France with ICT professionals
In what follows, we will take the example of France, since these days François Hollande is visiting our country, while knowing that this example can also be applied to other countries.
According to Pôle Emploi, France has a confirmed need for 50,000 ICT professional jobs for 2013 alone; these jobs being 99% "permanent contracts". And according to other sources, this need would reach approximately 450,000 jobs over a four-year period. If this shortage of ICT professionals is not filled, it will have negative consequences on the French ICT sector and could even have a negative impact on the French economy in general. To address this situation, France plans to resort to immigration.
In this context, the opportunity that arises for Tunisia is co-location, which consists, as its name suggests, in co-locating French companies between France and Tunisia by creating mixed Tunisian-French structures in Tunisia. This will allow French companies to address the lack of resources and ICT professionals by recruiting in Tunisia while keeping these resources in Tunisia and not making them emigrate, the solution considered so far.
In short, co-location can benefit both France and Tunisia, making it a win-win solution that should be of interest to both countries.
For example, we will mention the following advantages.
For France, co-location will make it possible to address the shortage of resources and ICT professionals and to meet the growing demand of the French and European markets through their establishment in France and Tunisia. Taking advantage of Tunisia's competitive costs, co-location will allow French ICT companies to improve their competitiveness by reducing their operating costs, which will allow them to maintain, or even improve, their positioning in their traditional markets.
This co-location finds its essence within the framework of a partnership with Tunisian ICT companies to allow French companies to benefit from Tunisian know-how in terms of management of Tunisian skills, relations with the administration, etc. However, this partnership will facilitate access for French ICT companies to new markets such as the North African, Middle Eastern and Sub-Saharan African markets.
Finally, this co-location will allow France to avoid the pitfalls of emigration, even if those concerned are higher education graduates in our case. It will also contribute to Tunisia's economic development and, above all, to better political stability in the south of the Mediterranean.
For Tunisia, this will allow the creation of local jobs and not the reduction of unemployment through emigration and the flight of skills; a better socio-economic impact through indirect jobs; a contribution to economic development and political stability as well as an increase in exports.
Co-location is not job relocation...
Finally, co-location is essentially different from relocation, offshoring or nearshoring. Its objective is in no way to relocate jobs from France to Tunisia, quite the contrary. It is about enabling French companies to maintain and develop themselves in their traditional markets by improving their competitiveness and to be able to more easily penetrate new markets through their Tunisian partners.
Co-location is also a source of lasting partnerships between French and Tunisian companies, and it is different from simple partnerships established to meet specific markets, even if these partnerships have been the subject of letters of intent signed with great fanfare.
It is only through win-win models that the establishment of foreign companies in Tunisia will be sustainable. Otherwise, the jobs created will only be ephemeral and the return to square one inevitable.
Mustapha Mezghani.
Webmanagercenter.com
Published on July 4, 2013.
Posted online on July 7, 2013.
