Administration Outsourcing - Africa

Revenue in the Administration Outsourcing market is projected to reach US$1.31bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 6.26%, resulting in a market volume of US$1.77bn by 2029.
The average Spend per Employee in the Administration Outsourcing market is projected to reach US$2.54 in 2024.
In global comparison, most revenue will be generated United States (US$27.29bn in 2024).

Definition :
Administration Outsourcing refers to the market for services associated with the external sourcing of typical IT administration tasks such as hardware supply, setup, configuration, maintenance, security, and support. This market contains all services related to the provision of physical IT equipment, whereas the support of company-owned software is not included.

Administration outsourcing allows organizations to optimize their administrative processes, improve efficiency, and focus on core competencies.

Additional Information:

The Administration Outsourcing 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 Hewlett Packard Enterprise, IBM, Accenture, Capgemini, and CGI.

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Hardware supply, such as Cisco Systems, Hewlett Packard Enterprise (HPE), and Dell Technologies
Hardware configuration, such as CDW (CDW Corporation), World Wide Technology (WWT), and ProSys Information Systems
Hardware maintenance, such as IBM Technology Support Services, Innovative Computer Systems, and Maintech
Security and support, such as Rapid7, Check Point Software Technologies, and Trend Micro

Application outsourcing, such as ScienceSoft, Arcanys, and SumatoSoft
Web hosting, such as GoDaddy, Bluehost, and Amazon Web Services
Customer relationship management, such as Salesforce, SAP Customer Experience(C/4HANA), and Microsoft Dynamics 365
Support of core business functions

The demand for Administration Outsourcing services in Africa has been steadily increasing over the years, with more and more companies opting to outsource their administrative tasks to third-party service providers.

Customer preferences: One of the primary reasons for the growth of this market is the increasing need for companies to focus on their core competencies. By outsourcing administrative tasks such as payroll processing, data entry, and customer support, companies can concentrate on their primary business activities, leading to increased efficiency and productivity. Additionally, outsourcing allows companies to reduce costs associated with hiring and training staff, as well as investing in technology and infrastructure.

Trends in the market: The trend towards outsourcing administrative tasks is particularly prevalent in countries such as South Africa, Nigeria, and Egypt, where there is a large pool of skilled labor available at a relatively low cost. In South Africa, for example, there has been a significant increase in the number of companies outsourcing their administrative tasks to service providers in India, due to the availability of highly skilled labor at a significantly lower cost than in South Africa.

Local special circumstances: In some African countries, such as Ethiopia and Rwanda, the government has been actively promoting the outsourcing industry by providing tax incentives and investing in infrastructure to support the growth of the sector. This has led to an increase in the number of outsourcing service providers in these countries, as well as an increase in the number of companies outsourcing their administrative tasks to local service providers.

Underlying macroeconomic factors: The growth of the Administration Outsourcing market in Africa can also be attributed to the increasing adoption of technology and the rise of the digital economy. With the increasing availability of high-speed internet and the proliferation of mobile devices, companies are increasingly able to outsource their administrative tasks to service providers located anywhere in the world. This has led to increased competition in the market, as service providers from countries such as India and the Philippines compete with local service providers for business.In conclusion, the Administration Outsourcing market in Africa is growing due to the increasing need for companies to focus on their core competencies, the availability of skilled labor at a relatively low cost, government support, and the rise of the digital economy. As the demand for outsourcing services continues to grow, it is likely that we will see an increase in the number of outsourcing service providers in Africa, as well as an increase in the range of services offered.

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.

This report presents a comprehensive analysis and additional information on the Technology market, in a PDF format.

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.