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IT Services - Ethiopia

Ethiopia
  • The IT Services market in Ethiopia is expected to see a significant increase in revenue, with projections indicating it will reach US$2.44bn by the year 2025.
  • Among the various segments within the market, Business Process Outsourcing is set to dominate, with a projected market volume of US$917.20m in the same year.
  • This dominance is indicative of the growing demand for outsourcing services in the country.
  • Furthermore, the IT Services market in Ethiopia is expected to experience a steady annual growth rate of 9.68% from 2025 to 2029.
  • This growth rate will result in a market volume of US$3.53bn by the year 2029, showcasing the sector's potential for expansion and development.
  • In terms of spending, the average Spend per Employee in the IT Services market is projected to reach US$38.02 in 2025.
  • This metric serves as an indicator of the level of investment and resources allocated to each employee within the industry.
  • When compared globally, it is worth noting that United States is expected to generate the highest revenue in the IT Services market, reaching a substantial US$550.28bn in 2025.
  • This highlights United States' position as a major player in the global IT Services market sector and emphasizes the size and significance of its market.
  • Ethiopia's IT Services market is experiencing rapid growth, fueled by a burgeoning tech startup ecosystem and government initiatives to promote digital transformation.

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.

For more information on the data displayed, use the info button right next to the boxes.

In-Scope
  • IT consulting & implementation, such as Accenture, Hitachi, and Hewlett Packard Enterprise
  • Business process outsourcing, such as IBM, Infosys, and NTT Data
  • IT outsourcing, such as Capgemini, Cognizant, and Fujitsu
  • System integration services, such as Deloitte, CGI, and Tata Consultancy Services
  • IT training & education, such as Skillsoft, LinkedIn Learning, and NIIT
Out-Of-Scope
  • Infrastructure as a service, such as Microsoft Azure, Alibaba Cloud, and DigitalOcean
  • Platform as a service, such as Microsoft Azura, Google Cloud, and Engine Yard
  • Software as a service, such as Oracle Cloud Applications, Google Workspace, and Workday
  • Support or maintenance of company-owned software products
IT Services: market data & analysis - Cover

Market Insights report

IT Services: market data & analysis
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    Revenue

    NOTES: Data was converted from local currencies using average exchange rates of the respective year.

    MOST_RECENT_UPDATE: Apr 2024

    SOURCE: Statista Market Insights

    NOTES: The chart “Comparable Estimates” shows the forecasted development of the selected market from different sources. Please see the additional information for methodology and publication date.

    MOST_RECENT_UPDATE: Apr 2024

    NOTES: Data was converted from local currencies using average exchange rates of the respective year.

    MOST_RECENT_UPDATE: Apr 2024

    SOURCE: Statista Market Insights

    Key Players

    MOST_RECENT_UPDATE: Dec 2024

    SOURCE: Statista Market Insights

    Analyst Opinion

    The IT Services market in Ethiopia has been experiencing significant growth in recent years.

    Customer preferences:
    Customers in Ethiopia are increasingly demanding IT solutions that are tailored to their specific needs and are cost-effective. They are looking for innovative solutions that can help them improve their business processes and increase efficiency.

    Trends in the market:
    One of the key trends in the IT Services market in Ethiopia is the growth of cloud computing. Many businesses in the country are adopting cloud-based solutions to reduce costs and improve flexibility. Another trend is the increasing demand for mobile applications, as more and more Ethiopians are using smartphones and tablets.

    Local special circumstances:
    Ethiopia is one of the fastest-growing economies in Africa, with a rapidly expanding middle class and a young, tech-savvy population. The government has also been investing heavily in infrastructure, including the development of a national fiber-optic network. These factors have created a favorable environment for the growth of the IT Services market.

    Underlying macroeconomic factors:
    The growth of the IT Services market in Ethiopia is being driven by a number of macroeconomic factors, including a growing economy, a young and tech-savvy population, and government investment in infrastructure. In addition, the country's strategic location and its large domestic market make it an attractive destination for IT companies looking to expand in Africa.

    Global Comparison

    NOTES: Data was converted from local currencies using average exchange rates of the respective year.

    MOST_RECENT_UPDATE: Apr 2024

    SOURCES: Statista Market Insights, Financial Statements of Key Players, National statistical offices

    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.

    Technology

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    IT Services: market data & analysis - BackgroundIT Services: market data & analysis - Cover

    Key Market Indicators

    NOTES: Based on data from IMF, World Bank, UN and Eurostat

    MOST_RECENT_UPDATE: Jan 2025

    SOURCE: Statista Market Insights

    OUTLOOK_EXPLORE_RELATED_TOPICS

    IT services - Statistics & Facts

    Unseen yet omnipresent, Information Technology (IT) services are the invisible gears driving modern organizations. These services support business operations and digital transformation through outsourcing, managed services, security, data management, and cloud computing. By leveraging these services, companies enhance efficiency, reduce costs, and gain competitive advantages in a digital marketplace. Prominent cloud providers worldwide include Amazon Web Services, Microsoft Azure, Google Cloud, and Alibaba Cloud. In the managed services sector, Oracle, Accenture, and IBM are among the largest providers globally.
    OUTLOOK_MORE_DATA_ON_TOPIC

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