Outsourcing costs in the Gulf countries is expected to hit 21% higher in 2009, touching $503m compared to $413m in 2008, Gulf News has reported. The industry is faced with big challenges like shortage of qualified staff, inflation, cost per unit, and the telecom costs. While Oman is seen as a potential place for outsourcing in the long run, Eypt poses the strongest position with a well-educated workforce and strong multilingual capabilities.