Morocco’s Offshoring Advantage

Following up on my Euromed post on Afoe, I see McKinsey have a report of Morocco’s potential as a services outsource base for the Spanish speaking and Francophone parts of the EU (registration required, but easy and worthwhile IMHO):

Morocco’s appeal includes wages for white-collar workers that are half those in France, a relatively high proportion of university graduates, and many citizens who speak French, the second language in the central region of the country. Furthermore, the cost and quality of its already respectable telecommunications infrastructure are set to improve further with the expected entry of Spain’s Telefónica as a second fixed-line operator. The country’s nascent offshoring sector, with an estimated current turnover of €85 million, includes some 50 mostly small providers that will employ a total of about 10,000 people by the end of 2005. Still, Morocco has captured almost half of the fledgling market for call centers serving French-speaking companies. In addition, Telefónica has established a captive call center in northern Morocco, where Spanish is the second language.