Offshoring in Morocco: Your Comprehensive Guide to Success

Welcome to our comprehensive guide on offshoring in Morocco – a land of unparalleled opportunities and a burgeoning hub for global business services. In this detailed exploration, we unveil the vibrant tapestry of Morocco’s offshoring landscape, offering a treasure trove of insights for businesses looking to leverage this dynamic market.

Discover Morocco’s Economic Transformation: Embark on a journey through the heart of Morocco

In today’s globalized business landscape, offshoring has emerged as a strategic approach for
companies seeking operational efficiency, cost reduction, and access to specialized skills. Among the
world’s destinations for offshoring, Morocco stands out as a hub with unique advantages, rapidly
becoming a nexus for foreign investment in Morocco.

This comprehensive guide delves into the thriving offshoring sector in Morocco, offering insights for foreign companies looking to leverage this burgeoning market and tap into the best investment in Morocco.

As we explore various facets of offshoring in Morocco, from its definition and the role it plays in the
national economy to the practicalities of setting up an offshoring business, you’ll discover a plethora of
Morocco opportunities. Special attention will be given to the Integrated Industrial Platforms (P2I
Offshoring), the key players in the sector, and the rich pool of human resources available, emphasizing
the multilingual capabilities unique to Morocco.

Additionally, the strategic geographic location of Morocco, its state-of-the-art telecom infrastructure, and the promising cities for offshoring will be highlighted, all contributing to the numerous Moroccan success stories in the global business sphere.

Furthermore, this guide will provide an in-depth look at the governmental incentives and fiscal
benefits that make Morocco an attractive offshoring destination. Notably, we will outline a step-by-
step guide for setting up an offshoring company in Morocco, culminating with an introduction

to BHADVISER, a Casablanca-based legal, accounting, and fiscal advisory firm. BH ADVISER specializes
in guiding companies through the legal setup and authorization processes, acting as a liaison with
various stakeholders and ensuring a smooth transition into the Moroccan offshoring landscape.

Whether you are a multinational corporation or a burgeoning enterprise considering offshoring, this
guide will equip you with essential knowledge and insights to navigate the Moroccan offshoring sector
successfully.

Offshoring, as defined in this context, refers to the strategic relocation of certain business activities or
processes to Morocco, leveraging the country’s pool of qualified human resources and competitive
costs.

This business strategy has become increasingly prominent, with companies worldwide seeking
to optimize their operations by shifting certain functions to locations like Morocco that offer a blend of
talent and cost-efficiency. The offshoring activities in Morocco primarily span five key sectors:

• This sector encompasses services like telephone reception, overflow call management, and telemarketing, where advice and information on offers or products are provided.
• It also includes handling complaints and debt recovery, as well as digital customer service solutions.

• This involves the outsourcing of general administrative activities and specific business functions.
• Companies transfer various back-office operations, including data processing and administrative tasks, to external providers.

• This sector covers a range of IT services, including infrastructure management, software development, and application maintenance.
• Businesses outsource these functions to tap into advanced technological capabilities and expertise.

• This involves outsourcing engineering activities and research and development (R&D) operations.
• Companies engage in ESO to leverage external expertise in specialized engineering and R&D, driving innovation and development.

• KPO is focused on outsourcing more strategic and knowledge-intensive processes, requiring specialized expertise and knowledge.
• This includes market research, data analytics, specialized publishing, and legal process outsourcing, where high-level skills and in-depth domain knowledge are essential.

Each of these sectors represents a facet of offshoring that capitalizes on Morocco’s unique strengths, such as a multilingual workforce, favorable cost structures, and a strategic geographic location. This diversification within the offshoring industry not only highlights Morocco’s broad capabilities but also reflects the evolving nature of global business processes, where companies seek specialized, cost-effective solutions beyond their borders. As the offshoring landscape continues to grow and diversify, Morocco positions itself as a key player, offering a wide array of services that cater to the intricate needs of global businesses.

Morocco’s strategic positioning in the offshoring market is a testament to its significant role in the global offshoring landscape. The country has effectively harnessed its competitive factors, making it a privileged player in the international arena, particularly in the offshoring industry. This sector is integral to Morocco’s national strategy for industrial emergence, aiming to capture employment opportunities spurred by the sector’s global development. The ambitious goal set by the state was to create approximately 100,000 jobs in offshoring from 2005 to 2020, paralleling the promising employment potential found in the automotive sector.

The Moroccan government’s targeted approach not only sought to diversify its productive base but also to pivot towards promising new sectors capable of generating employment and wealth, integrating into the knowledge economy era. Morocco’s success in becoming a favored destination for Francophone and Hispanophone nearshoring is attributable to its competitive advantages. Particularly in terms of human resource costs, Morocco offers more competitive salary levels compared to Western European countries targeting the same nearshoring segment. Additionally, Morocco’s geographical proximity to Europe, alignment with French and Spanish time zones, and availability of French and Spanish-speaking human resources significantly enhance its attractiveness.

To bolster its position in the offshoring market, Morocco has implemented an incentivizing framework. This includes tax relief measures, training assistance programs, a legal framework for data protection, and the development of internationally standardised technological parks (P2I). The tax incentives, for instance, offer offshoring companies a five-year tax exemption, followed by a reduced corporate tax rate, recently adjusted to just 20%.

The training aid program is another pivotal aspect, providing state financial contributions to help companies adapt the skills of new recruits to job requirements. This support includes initial training in the first year and ongoing training in the subsequent two years, with the total aid for engineer profiles reaching up to 95,000 MAD over three years.

Data protection laws, such as Law 09.08, and the establishment of the National Commission for the Control and Protection of Personal Data, have been critical in building trust among foreign operators and accelerating offshoring activities.

The innovative concept of Integrated Industrial Platforms (P2I) has been a game-changer, designed to ease the operations of businesses in this domain. These P2I are technological parks offering plug-and-play workspaces and a range of services necessary for daily business operations, including one-stop administrative services, business centers, and recruitment support services. These platforms align with international standards, offering a comprehensive environment conducive to business focus.

Morocco has programmed six P2I specifically for offshoring as part of its Emergence plan, with major platforms like Casanearshore in Casablanca and Technopolis in Rabat-Salé already operational. The creation of these P2I is a significant promotional factor for Morocco as an offshoring destination, demonstrating the state’s commitment to creating conducive conditions for offshore relocation projects.

Despite fierce competition from countries like Romania and Tunisia, Morocco has successfully positioned itself as an emerging destination in the offshoring sector, attracting subsidiaries of global enterprises. However, challenges remain, particularly in segments like customer relationship management, where language and time zone conditions favor Morocco. The country’s ongoing efforts and strategic advantages continue to solidify its standing in the Francophone and Hispanophone nearshoring market, even as new competitors emerge.

The offshoring sector in Morocco has attracted a diverse range of international and notable companies, solidifying its reputation as a prime offshoring destination. These key players span various industries, from information technology and finance to customer service and insurance, showcasing the sector’s versatility and adaptability. Among the most prominent enterprises that have established significant operations in Morocco are:

• CAPGEMINI: A global leader in consulting, technology services, and digital transformation, Capgemini has leveraged Morocco’s talent pool and strategic location to serve its international clientele.
• CGI: As one of the largest IT and business consulting services firms in the world, CGI has found a conducive environment in Morocco for its expanding global operations.
• BNP PARIBAS: This leading bank in the Eurozone has utilized Moroccan offshoring services for various financial operations, benefiting from the country’s skilled workforce and favorable business climate.
• AXA: A frontrunner in the insurance sector, AXA leverages Moroccan expertise for various back-office and customer support services.
• IBM: An industry giant in technology and consulting, IBM’s presence in Morocco underscores the country’s capability in handling sophisticated IT and consulting services.
• ACCENTURE: Specializing in IT services and consulting, Accenture taps into Morocco’s rich talent pool for various technology-driven solutions.
• DELL: The renowned technology company utilizes Moroccan expertise for various aspects of its global business, from IT services to customer support.
• AMAZON: The e-commerce giant, known for its global reach, benefits from Morocco’s strategic position and skilled labor in managing its vast customer service operations.
• UBISOFT: A leader in the gaming industry, Ubisoft’s presence in Morocco signifies the country’s potential in creative and digital industries.
• WEBHELP: As a global leader in business process outsourcing (BPO), Webhelp utilizes Morocco’s multilingual and skilled workforce to provide customer experience and business services.
• ATOS: This leader in digital transformation takes advantage of Morocco’s tech-savvy workforce for its IT services and solutions.
• STERIA: Involved in providing IT services, Steria finds Morocco a strategic location for delivering its services to a global clientele.
• GFI INFORMATIQUE: Specializing in digital services and software development, GFI Informatique taps into the Moroccan market for its expertise in IT solutions.
• SQLI: A digital services company that leverages Morocco’s technological expertise to enhance its digital transformation services.

These companies are not just beneficiaries of Morocco’s offshoring advantages but also contribute significantly to the country’s economic growth and employment landscape. Their presence in Morocco reflects the country’s ability to provide a competitive and skilled environment conducive to a wide array of business processes and services.

The success of these key players in the Moroccan offshoring sector serves as a strong indicator of the country’s standing as a globally recognized offshoring hub, capable of meeting the diverse and evolving needs of international businesses.

Integrated Industrial Platforms dedicated to offshoring (P2I Offshoring) in Morocco are state-of-the-art zones specifically designed to cater to the needs of the offshoring sector. These platforms embody a new wave of industrial development, offering a comprehensive and conducive environment for businesses in offshoring. Key characteristics of these P2I Offshoring zones include:

• Exclusive Focus on Offshoring Activities: P2I Offshoring zones are reserved exclusively for offshoring activities, as defined in previous sections. This specialization ensures that businesses operating within these zones benefit from a tailored environment that directly caters to their specific needs.
• Strategic Urban Proximity: These platforms are strategically located near major urban centers. This proximity is crucial for several reasons: it ensures easy integration into the local community, provides access to a vast pool of talent, and facilitates significant connectivity options for businesses. This strategic positioning also benefits employees, offering them the convenience of urban amenities and transportation.
• Flexible and Diverse Real Estate Offerings: The real estate options within P2I zones are designed to be flexible and diversified, accommodating the varying needs of businesses. This includes options for office spaces of different sizes and configurations, enabling companies to scale up or down based on their operational requirements.
• Single Administrative Point of Contact: One of the standout features of P2I Offshoring zones is the availability of a ‘one-stop shop’ for administrative procedures. This service simplifies the bureaucratic processes for businesses, allowing them to focus more on their core activities rather than navigating administrative complexities.
• Comprehensive Support Services and Infrastructure: P2I Offshoring zones are equipped with a full range of support services and infrastructures that meet or exceed international standards. They offer advanced technological infrastructure, including high-speed internet and telecommunications, which are essential for offshoring operations. Additionally, these zones provide various support services, such as legal, financial, and HR assistance, all tailored to the needs of offshoring companies.

The conception of P2I Offshoring zones reflects Morocco’s commitment to providing an optimal environment for offshoring businesses. By offering a mix of strategic location, flexible real estate options, administrative ease, and high-standard infrastructures and services, these zones significantly enhance the attractiveness of Morocco as a destination for offshoring activities. They not only cater to the immediate needs of investors and their employees but also position Morocco as a competitive player in the global offshoring market.

The eligibility for companies to set up operations in the Integrated Industrial Platforms (P2I Offshoring) in Morocco is clearly defined, ensuring that these specialized zones maintain their focus and effectiveness in serving the offshoring sector. To qualify for installation in these P2I zones, companies must be operating in offshoring activities as defined in the outlined guidelines and meet specific eligibility criteria set forth in the Terms of Reference, which is detailed in Annex 2 of the policy documents.

• Operational Scope: The company must be engaged in one or more offshoring activities. This includes sectors like CRM, BPO, ITO, ESO, and KPO, as previously detailed.
• Compliance with Standards: Firms must adhere to the standards and regulations stipulated in the offshoring sector’s regulatory framework, ensuring that their operations align with national and international best practices.
• Commitment to Quality: Prospective companies are expected to demonstrate a commitment to providing high-quality services, contributing to the overall value proposition of the P2I Offshoring zones.

Once a company meets these eligibility criteria, it can access a plethora of benefits that these integrated platforms offer:

• Strategic Location Advantages: Located near major urban centers, P2I zones offer companies logistical and operational advantages, including access to a large talent pool and proximity to key business and financial hubs.
• State-of-the-Art Infrastructure: Companies benefit from ready-to-use, world-class infrastructural facilities, including advanced telecommunications, high-speed internet, and modern office spaces.
• Administrative and Regulatory Ease: The presence of a one-stop administrative shop simplifies the process of setting up and running operations, reducing bureaucratic hurdles and saving valuable time and resources.
• Cost-Effectiveness: P2I Offshoring zones provide a cost-effective solution for businesses, offering competitive real estate options and operational costs, which can significantly lower overall business expenditure.
• Support Services: Companies have access to a wide range of support services, from legal and financial consulting to human resources and IT support, all tailored to the needs of offshoring businesses.
• Networking and Collaboration Opportunities: Being part of these integrated platforms also offers companies the opportunity to network and collaborate with other businesses in the zone, fostering a community of innovation and mutual growth.

In summary, the P2I Offshoring zones in Morocco are not just about providing physical space for businesses; they are about creating an ecosystem that nurtures growth, efficiency, and innovation in the offshoring sector.

The eligibility criteria ensure that only dedicated and compliant offshoring businesses can set up in these zones, while the benefits provided make these zones attractive destinations for such companies looking to establish or expand their operations in Morocco.

The process for establishing operations within the Integrated Industrial Platforms (P2I Offshoring) in Morocco is structured to ensure both efficiency and compliance with the designated standards for offshoring activities. Companies interested in setting up in P2I Offshoring must follow a specific procedure, as outlined below:

•  Companies must submit their application for implantation in P2I Offshoring to the managers of these platforms. This application should be submitted against a receipt and must be accompanied by a comprehensive dossier detailing the proposed investment program.
•  The investment dossier should include the company’s statutes, investor references, a detailed description of the investment project, a business plan, the amount of investment, a schedule for realization, projected employment generation, and other relevant details.

• The P2I manager is responsible for reviewing the implantation requests. This review process involves assessing the application against the criteria outlined in Annex 1 of the policy document and comparing it with the list of offshoring activities already established within the P2I Offshoring.
•  If the application involves well-defined activities that align with existing criteria, the manager proceeds with the evaluation.

   – In cases where the application involves activities that are not clearly defined or fall outside the standard scope, the P2I manager consults with the Technical Orientation Committee (CTO) to decide on the application.

•    The manager is expected to process the application within five (5) working days from the date of submission of the complete dossier, as evidenced by the receipt.
•   If the application requires CTO intervention, the processing time extends to one (1) month from the date of submitting the complete dossier, with the date confirmed by the receipt.

This structured procedure ensures that the implantation of companies in the P2I Offshoring zones is in line with the strategic objectives of Morocco’s offshoring policy.

It allows for a thorough evaluation of potential companies, ensuring that only those that align with the offshoring criteria and can contribute positively to the ecosystem are permitted to establish their operations.

This process not only maintains the quality and integrity of the P2I Offshoring zones but also ensures that the companies setting up there have a clear, straightforward path to establishment, promoting a business-friendly environment.

The human resources aspect of Moroccan offshoring is a critical component that significantly contributes to the sector’s success and attractiveness. Morocco’s offshoring industry is supported by a robust and dynamic workforce, characterized by several key attributes:

• Educated and Skilled Workforce: Morocco has made considerable investments in education and training, resulting in a steadily growing pool of educated professionals. This workforce is not only technically proficient but also adaptable to the evolving demands of the offshoring industry. Specialized training programs and higher education institutions in Morocco continually align their curricula with market needs, ensuring that graduates possess relevant and up-to-date skills.
• Multilingual Capabilities: One of the standout features of the Moroccan workforce is its multilingual proficiency. Apart from Arabic and Amazigh, a significant portion of the population is fluent in French, which is widely used in business and academia. There is also a growing proficiency in English and Spanish, making the workforce exceptionally versatile and capable of serving a diverse global client base.
• Cultural Affinity: Moroccan professionals often exhibit a strong cultural affinity with European and North American markets. This is partly due to Morocco’s geographic proximity to Europe and historical ties, which enable a better understanding of Western business practices and consumer preferences.
• Youthful Demographics: Morocco’s youthful population is another asset. A significant proportion of the workforce is young, energetic, and eager to engage with global business trends. This demographic is generally tech-savvy and quick to adapt to new technologies and business paradigms, making them ideal for dynamic offshoring operations.
• Cost-Effectiveness: While being highly skilled, the Moroccan workforce is also cost-effective compared to many Western countries. This affordability, coupled with the high level of education and skill, makes Moroccan human resources highly attractive for offshoring purposes.
• Government Support and Training Initiatives: The Moroccan government has been proactive in supporting the offshoring sector, particularly in human resource development. There are numerous government-led training programs and incentives aimed at enhancing the skills of the workforce to meet the specific needs of the offshoring industry.
• Workforce Stability: The Moroccan labor market is characterized by relatively low turnover rates in the offshoring sector. This stability is beneficial for companies seeking a dependable workforce for long-term operations.
• Cultural Diversity and Inclusion: Morocco’s workforce is not only diverse in terms of language and skills but also culturally inclusive. This diversity fosters a dynamic work environment and a broader perspective, essential in the global offshoring industry.

In conclusion, the human resources in Moroccan offshoring are a blend of education, skills, multilingualism, cultural affinity, and cost-effectiveness, underpinned by supportive government policies.

This powerful combination makes Morocco’s workforce one of the most compelling aspects of its offshoring proposition, driving the sector’s growth and ensuring its sustainability and competitiveness on a global scale.

Morocco’s geographic and cultural assets play a significant role in bolstering its position as a leading destination for offshoring. These assets not only enhance the country’s appeal but also contribute to the operational efficiency and global connectivity of businesses established there.

• Strategic Geographic Location: Morocco’s location at the crossroads of Europe, Africa, and the Middle East is a major asset. It is strategically situated just a few miles from the southern tip of Europe, making it an ideal bridge between the continents. This proximity to key European markets, particularly Spain and France, facilitates business interactions and logistics, offering a significant time zone advantage for real-time collaboration with European clients.
• Cultural Proximity to Europe: Culturally, Morocco has strong ties with Europe, which stem from historical connections and ongoing economic and social interactions. This proximity extends beyond geography to include a deep understanding of European business cultures, consumer behaviors, and market dynamics. Moroccan professionals often demonstrate a high level of cultural empathy and adaptability, making them well-suited for serving European markets.
• Multilingualism: The Moroccan population is remarkably multilingual, with widespread proficiency in Arabic, French, and increasingly, English and Spanish. This linguistic diversity is a critical asset in the offshoring sector, allowing Moroccan companies to cater to a diverse client base from different parts of the world.
• Political Stability and Progressive Policies: Morocco is known for its political stability in a region that has seen considerable upheaval. This stability, underpinned by progressive economic policies, creates a conducive environment for foreign investment and business operations.
• Rich Cultural Heritage: Morocco’s rich cultural heritage and its reputation as a melting pot of Berber, Arab, African, and European influences make it a unique and attractive destination. This cultural richness is reflected in the workforce’s adaptability and openness to diverse business practices and social norms.
• Tourism and Global Exposure: As a popular tourist destination, Morocco has a high level of exposure to international norms and practices. The influx of tourists from around the world has made the population more adaptable and open to various cultures, enhancing their ability to engage effectively in the global business arena.
• Natural Resources and Environmental Diversity: The country’s diverse natural landscapes, from coastal regions to mountains and deserts, not only make it attractive for tourism but also contribute to a varied and sustainable economic base, supporting various industries including agriculture, mining, and renewable energy.
• Modern Infrastructure Development: The Moroccan government has invested heavily in modern infrastructure development, including ports, airports, highways, and high-speed rail networks, significantly improving connectivity within the country and with the rest of the world.

In essence, Morocco’s geographic positioning and rich cultural tapestry provide a unique combination of advantages for the offshoring industry. These assets facilitate seamless integration into global markets, while offering a stable, culturally competent, and strategically located base for international companies looking to establish or expand their offshoring operations.

Morocco’s telecommunications and technological infrastructure play a pivotal role in its emergence as a key offshoring destination. The country has made significant strides in developing a robust infrastructure that supports the dynamic needs of the offshoring industry. This development is crucial in facilitating seamless communication and efficient operations for companies that rely heavily on digital connectivity.

• Advanced Telecommunications Network: Morocco boasts a modern and extensive telecommunications network. This includes widespread broadband and mobile internet access, with continually improving speeds and reliability. The country has invested in submarine fiber optic cables and satellite links, which enhance its connectivity with Europe and other parts of the world, ensuring high-speed internet and reliable data transfer.
• IT Infrastructure: The IT infrastructure in Morocco is increasingly sophisticated, with a focus on building data centers and cloud computing services. This advancement is critical for offshoring companies, especially those involved in IT Outsourcing (ITO) and Knowledge Process Outsourcing (KPO), as it ensures data security, high-speed processing, and efficient storage solutions.
• Government Investment in Technology: The Moroccan government has been proactive in investing in and promoting technology and innovation. Initiatives like the Maroc Digital 2020 strategy aim to accelerate digital transformation and improve the IT infrastructure, further boosting the country’s appeal as an offshoring hub.
• Tech Parks and Integrated Industrial Platforms (P2I): Morocco has established several technology parks and P2I Offshoring zones, designed to provide state-of-the-art facilities for IT and offshoring companies. These tech parks offer advanced technological infrastructure, including high-speed internet and modern office facilities, tailored to the needs of tech-based businesses.
• Renewable Energy Integration: In its bid to create a sustainable and cost-effective energy environment, Morocco is increasingly integrating renewable energy sources into its infrastructure. The country is a leader in solar and wind energy in Africa, which contributes to a reliable and eco-friendly power supply for technology-driven businesses.
• E-Government Services: The development of e-government services in Morocco enhances the efficiency of administrative procedures and interactions. This digitization is beneficial not only for citizens but also for businesses that require various government services, streamlining processes and improving transparency.
• Mobile Penetration and Digital Literacy: With high mobile penetration rates and a growing focus on digital literacy, Morocco is expanding its digital ecosystem. This environment is conducive to the development of digital services and e-commerce, further bolstering the technological infrastructure.
• Research and Development: Investment in research and development, particularly in technology and telecommunications, is on the rise. This focus ensures continual improvement and innovation in the sector, keeping pace with global technological advancements.

Morocco’s commitment to enhancing its telecom and technological infrastructure is evident. These advancements not only support the existing offshoring sector but also attract new businesses looking for a technologically advanced, reliable, and cost-effective location for their operations.

The country’s strategic focus on digital infrastructure development positions it favorably in the global offshoring landscape, ready to meet the technological demands of modern businesses.

Morocco’s landscape for offshoring is dotted with several cities that stand out as promising destinations for businesses looking to offshore various services. These cities, each with its unique strengths, contribute to the country’s growing reputation as a prime offshoring hub. Here are some of the key cities in Morocco that are particularly noteworthy for offshoring:

As the economic and business capital of Morocco, Casablanca is at the forefront of the offshoring industry. The city offers a dynamic business environment, a large pool of multilingual talent, and advanced infrastructure. It is home to Casanearshore Park, one of the largest offshoring parks in the region, providing state-of-the-art facilities to IT and BPO companies.

The capital city of Morocco, Rabat, is known for its political stability and high quality of life. It has a growing offshoring sector, particularly in IT and customer service. Rabat’s Technopolis Park is a key offshoring zone, offering modern infrastructure and a conducive environment for technology and R&D companies.

Marrakech, with its strategic location and growing infrastructure, is emerging as a new center for offshoring. The city is attractive due to its cultural richness, quality of life, and a growing pool of skilled professionals. Marrakech is focusing on attracting BPO and KPO services, leveraging its tourism-driven cosmopolitan culture.

Located on the Strait of Gibraltar, Tangier is a gateway to Europe. Its geographical position is a significant advantage for companies targeting European markets. The city is rapidly developing its offshoring infrastructure and has become a hub for manufacturing and trade-related offshoring activities.

Fez, known for its rich history and cultural heritage, is also making strides in the offshoring sector. The city offers a competitive cost structure and a skilled, multilingual workforce. Fez is focusing on developing its IT and BPO sectors, capitalizing on its educational institutions and growing tech talent pool.

Agadir is gaining attention for its potential in offshoring, particularly due to its pleasant climate, modern infrastructure, and connectivity. The city is seen as a promising location for companies looking for a balanced blend of lifestyle and business opportunities.

7. Oujda and Tétouan: These cities are emerging as offshoring destinations, especially for companies looking at nearshoring opportunities. Their proximity to Europe, combined with growing local talent and supportive infrastructure, makes them attractive for businesses focusing on European markets.

Each of these Moroccan cities offers unique advantages, from strategic geographical locations to rich talent pools and supportive business environments. The diversity in their offerings allows Morocco to cater to a wide range of offshoring needs, making the country a versatile and attractive destination for global offshoring operations.

The Moroccan government has implemented a range of incentives and supports to bolster the offshoring sector, making it an attractive destination for international businesses. These measures are particularly focused on enhancing the capabilities of companies operating within the Integrated Industrial Platforms (P2I Offshoring) and include the following key aspects:

• Aid for New Recruits: Companies in P2I Offshoring zones benefit from state contributions towards training costs for each new Moroccan recruit. This support covers both initial employment training and ongoing training over a three-year period.
• Contribution Variances: The amount of this contribution varies depending on the profiles defined in the “Training/Jobs Offshoring” procedures manual (included in Annex 3). This ensures that the training aid is aligned with the specific skills and roles required in the offshoring industry.
• Disbursement of Funds: The contributions are disbursed to beneficiary companies in accordance with the aforementioned procedures manual and its operational mode, ensuring a structured and transparent support system.

– Real Estate Offerings: P2I Offshoring zones feature flexible and diverse real estate options that adhere to well-defined norms and standards set by the Technical Committee. These facilities are ready-to-use and offered at competitive costs, catering to various business needs and sizes.

• Telecommunications Services: The P2I zones are equipped with leading telecommunications offerings, including service level agreements (SLAs) that are competitive with other major offshoring destinations. This includes high-value services with commitments to top-tier standards. Regular improvements are made in terms of pricing and infrastructure quality to maintain a competitive edge.
• Range of Support Services: A broad spectrum of support and administrative services is available, which includes utilities, catering, public transportation, maintenance, security, telephony, financial and postal services, business centers, and other related tertiary services.
• Public Transport Accessibility: Efforts are made to ensure that public transport services adequately connect to the P2I Offshoring zones, facilitating ease of access for employees and business visitors.

These incentives and supports are integral to Morocco’s strategy to enhance its attractiveness as an offshoring destination. By providing training assistance, world-class infrastructure, and a range of support services, the Moroccan government not only aids in reducing operational costs for businesses but also ensures that the workforce is well-trained and that companies have everything they need to operate efficiently and effectively. This comprehensive support system underlines Morocco’s commitment to fostering a thriving offshoring sector.

Establishing an offshoring company in Morocco involves a series of structured steps. This guide outlines the key stages in the process, providing a clear pathway for businesses looking to set up their offshoring operations in Morocco.

• Initial Planning: Begin with thorough market research to understand the Moroccan offshoring landscape. Develop a solid business plan that outlines your business model, target market, service offerings, and financial projections.
• -Regulatory Understanding: Familiarize yourself with the Moroccan business regulations, particularly those specific to offshoring.

• Company Registration in Morocco: Register your company with the Moroccan Commercial Registry. This involves choosing a company name, registering it, and preparing incorporation documents.
• Legal Documentation in Morocco: Prepare and submit the necessary legal documents, which may include the company statutes, shareholder information, and directors’ details.

• Location Decision: Decide on which P2I Offshoring zone your company will be based in, considering factors like proximity to urban centers, infrastructure, and specific benefits each zone offers.
• Application for Space: Submit an application for office space in the chosen P2I Offshoring zone, along with your business plan and other required documents.

• Business Licensing: Apply for any specific business licenses required for your offshoring operations.
• Compliance Checks: Ensure compliance with local regulations, including labor laws, tax regulations, and data protection laws.

• Office Setup: Establish your physical office within the chosen P2I zone. This includes setting up telecommunications, IT infrastructure, and office furnishings.
• Technology Infrastructure: Ensure robust IT infrastructure setup for seamless offshoring operations, including high-speed internet, data security measures, and necessary software.

• Recruitment: Begin the recruitment process to build your team. Utilize local job portals, recruitment agencies, and university career centers in Morocco.
• Training Programs: Leverage government-supported training programs for new hires, especially if they align with the training assistance program offered in P2I zones.

• Operational Readiness: Once the team is in place and the infrastructure is set up, conduct a trial run to ensure operational readiness.
• Official Launch: Launch your operations officially, starting with the services outlined in your business plan.

• Regulatory Compliance: Regularly review and ensure compliance with Moroccan business regulations and international standards.
• Business Growth and Expansion: Continually assess the market and adapt your business strategies for growth and expansion.

Setting up an offshoring company in Morocco requires careful planning, adherence to local regulations, and strategic decision-making, especially regarding location and workforce development. By following these steps, businesses can establish a strong foundation for successful offshoring operations in Morocco.

When establishing an offshoring operation in Morocco, navigating the myriad of legal, administrative, and operational challenges can be daunting. This is where BH ADVISER steps in as your indispensable partner, offering expert guidance and services to ensure a smooth and successful launch of your offshoring venture in Morocco.

•    BH ADVISER provides comprehensive legal assistance, including help with company registration, understanding and complying with local business laws, and ensuring adherence to offshoring regulations.
•    The firm’s expertise in Moroccan commercial law is invaluable for new entrants in the offshoring sector, mitigating legal risks and simplifying complex regulatory landscapes.

•    From selecting the appropriate corporate structure to handling all aspects of company formation, BH ADVISER navigates clients through each step.
•    The firm assists in drafting necessary documents, registering with relevant authorities, and obtaining required licenses and permits.

   – BH ADVISER offers strategic insights into selecting the most suitable P2I Offshoring zone based on your specific business needs and goals.

   – The team provides support in application submission for office space and helps in negotiating terms to ensure the best possible setup for your business.

•    Leveraging its deep understanding of the Moroccan job market, BH ADVISER aids in recruiting the right talent, including advice on compensation structures and employment contracts.
•    The firm can guide you through Morocco’s training aid programs, ensuring you maximize the benefits available for workforce development.

•    BH ADVISER helps set up your operational infrastructure, from IT setup to establishing your physical office space, ensuring that your business is ready for operation from day one.
•    They offer ongoing administrative support, including accounting, payroll, and compliance services, allowing you to focus on core business activities.

•    With its extensive network of local contacts and deep market knowledge, BH ADVISER can facilitate valuable connections with local businesses, service providers, and government entities.
•    The firm assists in integrating your business into the local community, understanding cultural nuances, and establishing a strong local presence.

•    BH ADVISER remains a partner beyond the initial setup phase, offering ongoing advice and support as your business grows and evolves within the Moroccan offshoring ecosystem.
•    Their expertise is crucial for navigating future expansions, regulatory changes, or any operational challenges that may arise.

By partnering with BH ADVISER, companies not only gain access to expert guidance but also benefit from a streamlined and stress-free setup process. Their comprehensive suite of services ensures that all aspects of your offshoring operation in Morocco are expertly managed, from legal compliance and company formation to operational setup and employee recruitment. With BH ADVISER, businesses can confidently embark on their Moroccan offshoring journey, assured of a reliable and knowledgeable partner every step of the way.

The Moroccan government has structured a series of tax incentives to attract and support offshoring companies, making the country an appealing destination for international businesses. These incentives include substantial benefits related to corporate tax and income tax.

– Initial Exemption Period: Companies operating in the offshoring sector, whether inside or outside the Integrated Industrial Platforms (P2I) dedicated to these activities, are entitled to a total exemption from corporate tax for the first five consecutive fiscal years from the start of their operations.

Following this exemption period, companies are subject to a capped tax rate, which, according to Article 19-I-A of the General Tax Code (CGI), is limited to 20%. This rate is favorable compared to the standard corporate tax rates, thereby offering a continued financial advantage even after the initial exemption period.

• General Tax Contribution Reduction: Offshoring companies meeting the common eligibility criteria set out in the procedures manual (included in Annex 4) benefit from a state contribution. This contribution ensures that the tax burden in terms of Income Tax (IR) does not exceed 20% of the gross taxable income per individual, as per the procedures outlined in the manual.
• Specific Zones Additional Advantage: For offshoring companies operating in secondary P2I Offshoring zones such as Fès Shore, Oujda Shore, and Tétouan Shore, or any future new P2I zones outside Rabat and Casablanca that meet specific eligibility criteria (as detailed in Annex 4), the state offers a contribution reducing the Income Tax (IR) burden to just 10% of the gross taxable income per individual.
• Coverage Period: This income tax advantage covers the period from the year 2016 to 2025. Applications for this benefit for a given year must be submitted between the end of March and the end of May of the following year (year n+1). Reimbursement applications related to this advantage for periods prior to 2016 are governed by the procedures manual included in Annex 6.
• –End Date: The Income Tax (IR) benefit detailed in this article is set to conclude on December 31, 2025.

These tax incentives are a critical component of Morocco’s strategy to foster a competitive offshoring environment. By offering initial corporate tax exemptions and subsequent reduced tax rates, along with significant reductions in income tax obligations, Morocco positions itself as an economically advantageous location for offshoring businesses. These fiscal benefits not only enhance the profitability and viability of offshoring operations but also demonstrate the government’s commitment to supporting and developing this sector.

Morocco’s emergence as a premier destination for offshoring is underpinned by a combination of strategic initiatives, favorable policies, and inherent strengths. The country’s commitment to developing a thriving offshoring sector is evident in its comprehensive approach, which includes developing specialized zones like P2I Offshoring, offering substantial tax incentives, and ensuring a robust telecom and technological infrastructure.

• Strategic Geographic Location: Offering proximity to Europe and a gateway to Africa, facilitating easy access to major markets.
• Multilingual and Skilled Workforce: A young, dynamic, and educated workforce, proficient in multiple languages and adaptable to global business needs.
• Favorable Business Environment: Government policies and initiatives that provide significant tax benefits, training support, and streamlined administrative processes.
• State-of-the-Art Infrastructure: Modern and well-equipped P2I zones, coupled with advanced telecommunications and IT infrastructure, making it an ideal environment for offshoring operations.

For businesses considering offshoring in Morocco, the supportive ecosystem presents a compelling case. Whether it’s IT outsourcing, customer service, knowledge process outsourcing, or any other offshoring activity, Morocco offers a blend of cost-effectiveness, quality, and strategic advantage.

Furthermore, the role of entities like BH ADVISER cannot be overstated. Their expert guidance in navigating the legal, administrative, and operational landscapes of Morocco is invaluable for businesses looking to establish or expand their offshoring operations.

As we look towards the future, Morocco’s ongoing commitment to enhancing its offshoring sector, through continuous infrastructure development, workforce training, and policy support, positions it strongly in the global offshoring market. The country is not just an attractive destination for offshoring but also a vibrant ecosystem poised for sustained growth and innovation.

Morocco stands as a beacon of offshoring excellence, offering a unique blend of advantages for businesses around the world. Its journey to becoming an offshoring powerhouse is a testament to its strategic vision and unwavering commitment to creating a conducive environment for global businesses.

Morocco offers a unique combination of strategic geographic location, multilingual and skilled workforce, favorable business environment with significant tax incentives, and state-of-the-art infrastructure, making it an attractive destination for offshoring.

Morocco is well-suited for various offshoring activities, including Customer Relationship Management (CRM), Business Process Outsourcing (BPO), Information Technology Outsourcing (ITO), Engineering Service Outsourcing (ESO), and Knowledge Process Outsourcing (KPO).

P2I Offshoring zones are specialized areas designed to facilitate offshoring activities. They offer exclusive infrastructure, flexible real estate options, administrative support, and high-standard facilities at competitive costs.

Offshoring companies benefit from a total exemption from corporate tax for the first five years and a reduced tax rate afterward. There are also significant reductions in income tax obligations, with specific advantages for companies in certain P2I zones.

The government offers training assistance programs, contributing to the costs of hiring and training new Moroccan recruits, thereby ensuring a skilled and adaptable workforce.

Yes, foreign companies can fully own and operate offshoring businesses in Morocco, subject to compliance with Moroccan business laws and regulations.

BH ADVISER provides comprehensive services including legal and regulatory guidance, help with company formation, strategic advice for setting up in P2I zones, human resource support, and operational setup assistance.

While Arabic and French are predominant, there is a growing proficiency in English and Spanish among the Moroccan workforce, reducing language barriers for international businesses.

Cities like Casablanca and Rabat offer a blend of modern infrastructure, a large pool of talent, cultural affinity with European markets, and a high quality of life, making them attractive for offshoring businesses.

With continuous investment in infrastructure, workforce training, and supportive policies, Morocco’s offshoring sector is poised for sustained growth and innovation, maintaining its competitive edge in the global market.

For businesses interested in exploring offshoring opportunities in Morocco or seeking guidance on setting up operations, here are the contact details and services available:

•   Legal and regulatory guidance for setting up offshoring operations in Morocco.
•   Assistance with company formation and registration processes.
•   Strategic advice on choosing the appropriate P2I Offshoring zone.
•   Human resource payroll and compliance.
•   Operational setup including IT and administrative infrastructure.
•   Ongoing legal, operational, and business strategy consulting.

•   Address: 97 Quartier La Gironde – Casablanca – Morocco
•   Phone: +212.661.468.014
•   Email: contact@bhadviser.ma