Application Outsourcing - Eastern Africa

  • Eastern Africa
  • Revenue in the Application Outsourcing market is projected to reach US$287.50m in 2024.
  • Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 4.74%, resulting in a market volume of US$362.40m by 2029.
  • The average Spend per Employee in the Application Outsourcing market is projected to reach US$1.28 in 2024.
  • In global comparison, most revenue will be generated in the United States (US$42,860.00m in 2024).

Key regions: Brazil, Germany, United Kingdom, Netherlands, China

 
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Analyst Opinion

As businesses in Eastern Africa continue to grow, so does the demand for application outsourcing services. This has led to an increase in the number of companies that offer these services in the region.

Customer preferences:
Customers in Eastern Africa are increasingly looking for application outsourcing services that are affordable, reliable, and efficient. They want services that are tailored to their specific needs and that can help them to improve their business processes. In addition, there is a growing demand for cloud-based solutions that can be accessed from anywhere, at any time.

Trends in the market:
One of the key trends in the application outsourcing market in Eastern Africa is the growing adoption of mobile applications. With the increasing use of smartphones and other mobile devices in the region, businesses are looking for ways to reach their customers through these devices. This has led to an increase in the demand for mobile application development services.Another trend in the market is the growing popularity of open-source software. Many businesses in Eastern Africa are looking for cost-effective solutions that can help them to streamline their operations. Open-source software provides a low-cost alternative to proprietary software and is becoming increasingly popular in the region.

Local special circumstances:
One of the challenges facing the application outsourcing market in Eastern Africa is the lack of skilled professionals in the region. Many businesses are struggling to find qualified developers who can provide the services they need. This has led to an increase in the outsourcing of these services to other countries, such as India and the Philippines.Another challenge facing the market is the lack of infrastructure in some parts of the region. Many businesses are located in remote areas that do not have access to reliable internet or electricity. This can make it difficult for them to take advantage of application outsourcing services.

Underlying macroeconomic factors:
The application outsourcing market in Eastern Africa is being driven by a number of macroeconomic factors. One of these is the growing economy in the region. As businesses continue to grow and expand, they are looking for ways to improve their operations and increase efficiency.Another factor is the increasing use of technology in the region. With the growing use of smartphones and other mobile devices, businesses are looking for ways to reach their customers through these devices. This has led to an increase in the demand for mobile application development services.Overall, the application outsourcing market in Eastern Africa is poised for continued growth in the coming years. As businesses continue to expand and look for ways to improve their operations, the demand for these services is likely to increase. However, the market will need to overcome some challenges, such as the lack of skilled professionals and infrastructure, in order to fully realize its potential.

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.

Overview

  • Revenue
  • Key Players
  • Analyst Opinion
  • Global Comparison
  • Methodology
  • Key Market Indicators
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