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Monday, June 05, 2023 10:17 GMT
A recent report has found that Iraq has potential to evolve into a talent supply hub for basic offshore jobs, mainly driven by its cost competitive labor force, operational Special Economic Zones, and low corporate tax rates. However, critical challenges, including political risks and lagging telecom and physical infrastructures, may threaten the country's outsourcing prospects and lower the workforce's attractiveness. The study, prepared by Forward MENA in collaboration with the Boston Consulting Group (BCG), was aimed at fostering the growth of remote work ecosystems in six developing countries in the Middle East and North Africa (MENA): Lebanon, Jordan, Iraq, Egypt, Morocco, and Tunisia.It finds that Iraq offers many advantages for outsourcing businesses:Cost competitive labor seeking job opportunities due to country's job crisisLocal and regional job matching platforms available to identify and hire labors seeking job opportunitiesWell-established Special Economic Zones providing financial and non-financial incentives for investorsStrategic location and similarity of country's culture to well-known demand hotspotsActive involvement of non-profit sector to skill, reskill, upskill, and educate talent on the future of workLow corporate tax rates( fixed at 15%)But it adds that key challenges need to be addressed for outsourcing to reach its full potential:High risk of business disruptions due to political instabilitySignificant skilling, re-skilling and upskilling needed to prepare workforce for jobs of the future (technical skills, language proficiency)Lagging telecom and digital infrastructure requiring significant improvementsDysfunctional physical infrastructure with no access to basic needs for many IraqisWeak government investment in incentivizing outsourcing businessesUnderdeveloped outsourcing ecosystemLimited number of co-working spaces offered for freelancers and businessesLimited involvement of government and private sector to skill, re-skill and upskill talent in-country