Administration Outsourcing - Nigeria

Revenue in the Administration Outsourcing market is projected to reach US$132.80m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 11.75%, resulting in a market volume of US$231.30m by 2029.
The average Spend per Employee in the Administration Outsourcing market is projected to reach US$1.70 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 outsourcing services in Nigeria has seen a significant increase in recent years, with the Administration Outsourcing market being no exception.

Customer preferences: Companies in Nigeria are increasingly looking to outsource their administrative tasks to third-party service providers. This is mainly due to the cost-saving benefits that outsourcing provides, as well as the ability to focus on core business functions. Additionally, outsourcing administrative tasks allows companies to access specialized expertise and technology that they may not have in-house.

Trends in the market: One trend that has emerged in the Administration Outsourcing market in Nigeria is the increasing use of cloud-based solutions. This trend is driven by the need for more efficient and cost-effective ways of managing administrative tasks. Cloud-based solutions offer several benefits, including easy accessibility, scalability, and reduced infrastructure costs. Another trend in the market is the growing demand for customized outsourcing solutions. Companies are looking for providers that can tailor their services to meet their specific needs and requirements.

Local special circumstances: Nigeria's large population and growing economy provide a significant opportunity for outsourcing service providers. However, the country's infrastructure challenges, such as unreliable power supply and poor road networks, can pose a challenge for providers. Additionally, the country's regulatory environment can be complex, which can make it difficult for providers to operate.

Underlying macroeconomic factors: Nigeria's economy has been growing steadily in recent years, with the country's GDP expected to reach $1 trillion by 2030. This growth is being driven by several factors, including a large and growing population, increasing urbanization, and a growing middle class. These factors are creating a significant opportunity for outsourcing service providers, as companies look for ways to reduce costs and improve efficiency. Additionally, the Nigerian government has been implementing several reforms aimed at improving the business environment, which is expected to further drive growth in the outsourcing market.

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.