Egypt’s IT services sector, which includes outsourcing and contact centres, grew by just 12 per cent between 2006 and 2007 to reach almost $163m, according to consultant IDC.

IT services in other key markets around the world, such as Eastern Europe and East Africa, grew by 16 per cent over the same period.

The private sector generated 72.5 per cent of IT services revenues in Egypt in 2007, with the government generating just 27.5 per cent, according to IDC.

Government spending on IT should grow quickly after work starts on a $10m, four-year deal between SAP, a German software firm and Egypt Post (MEED 3:12:07).

The government will give SAP contracts with other departments if it is successful.