Offshoring: hampered by skills shortage in Morocco

The arrival of Western Offshoring Companies , SSII, attracted by Moroccan government incentives, has led to salary inflation of IT expertise in Morocco. Especially because the Government had initially focused its training efforts on the BPO, Business Process Outsourcing, market that is still struggling to take off.
Wage inflation, lack of IT profiles, and difficulty in finding on-site expertise. The opinions of those were interviewed converge: the takeoff of the Kingdom in the off shoring has not proceeded smoothly. In the first case, human resources available are relatively limited. Hence the rush of recruiters that has compounded the arrival of many western SSII, attracted by the incentives put in place by the Moroccan government.

A key factor is a surge in wages, including those or profiles of IT engineers. If the salary of a technician is around 4 000 dirhams per month (350 euros), the salary of an engineer is between 10 000 and 12 000 dirhams (between 890 and 1 070 euros). This salary may double within three to four years. "The economic slow down has calmed down wages in call centers, says Zniber Amine, Regional Director of the school Supinfo Morocco (see the interview video below in French). But it triggered a wage inflation among IT engineers accelerated with the arrival on new foreign High tech Companies.
The surge in wages, a benefit to employees, jeopardizes the takeoff of the offshore sector, which is based primarily on settlement activities of large software houses. But if salary inflation continues, they might be tempted to turn to cheaper countries. Of course, the Moroccan government has implemented a program to boost the number of engineers trained each year (15 000 per year by 2013), especially through the establishment of schools as Supinfo, while providing means for employers to adapt the available expertise (through participation in training costs).

But this effort will put a few more years to produce fruit. Especially since the Moroccan government had not relied at the outset on the development of BPO (Business Process Outsourcing), rather than offshore computer High tech. As explained in an interview with the Moroccan Minister of Industry, Trade and New Technologies Ahmed Reda Chami, "anticipation of our departure has led us to train more profiles than profiles BPO ITO (ITOutsourcing). We have therefore launched an operation to catch up, ForShore 3000, to reclassify 3 000 people on the trades of the ITO in six to nine months. "
“There is a real shortage" said Reydet-Rousselet Isabelle, manager of CMC2, a consulting and communications firm based in Casablanca, although a number of companies are trying to fill this gap by returning Moroccan expats, MRE, an acronym widely used in designating the Moroccans residing abroad. An HR bonanza that was used by the Indian TCS to run its subsidiary based in Casa-near-shore, the area dedicated to off-shoring installed on the outskirts of the economic capital.

A Last challenge for recruiters: navigate through the labyrinth of training. To form a young population - and meet the expectations of companies being set up - private schools are mushrooming in major cities of Morocco.
"for the level Bac +2, accreditation work has been done by the authorities. But for higher education, accreditation work is still ongoing." Said Supinfo director Zniber Amine, he believes that diplomas issued by schools should be approved next year.

Renault says on track to build plant in Morocco-CEO

RABAT, June 15 (Reuters) - France's No.2 carmaker Renault (RENA.PA) is going ahead with plans to build a factory to produce low-cost vehicles in Morocco despite the global downturn, the company's chief said on Monday.

The media in Morocco and abroad cast doubt on whether the factory would be built after the deepening economic crisis forced Japan's Nissan Motor Co (7201.T), which is in an alliance with Renault, to withdraw from the project early this year.

The project, being done in partnership with the Moroccan government, was announced in September. At the time the Renault-Nissan alliance said it would involve total investments of 600 million euros in manufacturing capacity.

Carlos Ghosn, who is both president and chief executive of Renault, and president of Nissan, flew from Paris to visit the plant site in Tangiers, and to meet king Mohammed and top government officials in Rabat to dispel any doubt about the factory's future.

"All what has been planned will be achieved," Ghosn told a news conference in Rabat, adding that he had already approved the investment for plant equipment.

"The buildings of this plant will be erected beginning September this year," Ghosn said, adding that the only change would be "the rate of production" of the factory, which would depend on market circumstances.

"The first cars good for sales will be produced from the Tangier plant in January 2012 as scheduled," he said.

Ghosen said Nissan would be part of the project in the future as it was now focusing now in a similar project in India.

"I'm the CEO and I'm telling you that," he said in a reply to a reporter who asked him for evidence that Nissan would rejoin the project. The factory is an important project for Morocco, where the government has invested more than $10 billion in developing the northern areas of the country around the Mediterranean port complex of Tangiers.

The government is hoping that investing the region will result in more jobs for the local people, many who have been eking out their livings from transporting illegal migrants into Europe and participating in the growing trade in smuggling cannabis into Spain.

The European Union has been putting pressure on Morocco to eradicate the production of cannabis there.

Ghosn said the planned car plant in Tangier would employ 4,000 people directly and 24,000 people indirectly and would help Morocco develop its fledgling industry of car components. (Reporting by Lamine Ghanmi; editing by Karen Foster)