IT Services - Eastern Africa

Eastern Africa

Revenue in the IT Services market is projected to reach US$4.67bn in 2024.
Business Process Outsourcing dominates the market with a projected market volume of US$1.62bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 9.67%, resulting in a market volume of US$7.41bn by 2029.
The average Spend per Employee in the IT Services market is projected to reach US$20.83 in 2024.
In global comparison, most revenue will be generated in the United States (US$522.00bn in 2024).

Key regions: United States, China, India, Japan, Germany

Definition:
The IT Services market encompasses a wide range of services used by organizations to create, manage, and deliver information, and it includes services that provide assistance with various other business functions. The primary goal of IT services is to ensure that information technology infrastructure, applications, and systems are effectively implemented, operated, and optimized to support an organization's business objectives and requirements. The specific range of services offered may vary depending on the service provider and the client's requirements.

Structure:

IT Services contains four distinct markets that are based on different services:

IT Consulting & Implementation covers advisory services that help businesses evaluate their technology strategies and align them with their business strategies or internal processes.
Business Process Outsourcing (BPO) refers to the transfer of entire business processes or individual activities from a company to a third party and is often IT based. BPO covers a wide variety of business processes, usually either in the back office (e.g., human resources) or in the front office (e.g., customer service in call centers).
IT Outsourcing refers to the external contracting of all IT-related services instead of relying on company-owned resources. In an IT context, these activities include IT administration, IT application, and web hosting services.
The Other IT Services market covers revenues for areas that are not specifically mentioned in the other markets, such as system integration, software installation and support, and IT education and training.

Additional Information:

The IT Services market comprises revenues, revenue change, average spend per employee, and a list of the key players in the market and their consolidated revenues. Market values represent revenues that are generated by primary vendors either directly or through distribution channels at the manufacturer price level (excluding VAT). Reported market revenues include spending by enterprises (B2B) and governments (B2G). Detailed definitions of each market can be found on the respective page where the market data is displayed. Key players in the market include IBM, Cognizant, Hewlett Packard Enterprise, and TCS.

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Market

Region

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Analyst Opinion

The IT Services market in Eastern Africa has been experiencing significant growth in recent years, driven by several factors.

Customer preferences: Customers in Eastern Africa are increasingly seeking out IT services to help them modernize and streamline their businesses. This includes services such as cloud computing, cybersecurity, and data analytics. Additionally, there is a growing demand for IT services in the healthcare sector, as healthcare providers seek to digitize their operations and improve patient outcomes.

Trends in the market: One key trend in the IT Services market in Eastern Africa is the growing popularity of mobile devices. As more people in the region gain access to smartphones and other mobile devices, there is a greater need for mobile-focused IT services such as mobile app development and mobile device management. Another trend is the increasing adoption of cloud computing, which allows businesses to access powerful computing resources without investing in expensive hardware and software.

Local special circumstances: One factor that is driving growth in the IT Services market in Eastern Africa is the region's rapidly growing population. With more people in the region, there is a greater need for businesses to adopt modern technologies to keep up with demand. Additionally, there is a growing startup culture in many parts of Eastern Africa, which is driving demand for IT services that can help these businesses grow and scale.

Underlying macroeconomic factors: Several macroeconomic factors are contributing to the growth of the IT Services market in Eastern Africa. One is the region's growing middle class, which is creating a larger market for IT services. Additionally, many countries in the region are investing heavily in infrastructure development, which is creating new opportunities for IT service providers. Finally, there is a growing recognition among policymakers in the region that investing in IT services is key to driving economic growth and promoting innovation.

Methodology

Data coverage:

The data encompasses B2G, B2B, and B2C enterprises. Figures are based on enterprises' technology spending on products, consulting, and outsourcing services.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of key players in the industry, Statista's primary research and surveys, and IT associations. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, internet users, and telecommunication. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing method is used based on the market data characteristics. The main drivers are the GDP and its sector composition, internet penetration, the level of digitization, and the attitude toward IT security.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.