IT Outsourcing - Benin

Benin

Revenue in the IT Outsourcing market is projected to reach US$51.63m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 11.43%, resulting in a market volume of US$88.70m by 2029.
The average Spend per Employee in the IT Outsourcing market is projected to reach US$10.02 in 2024.
In global comparison, most revenue will be generated in the United States (US$197.30bn in 2024).

Key regions: Netherlands, United States, Japan, Germany, Italy

Definition:
The IT Outsourcing market refers to the external contracting of IT functions, services, or projects instead of relying on company-owned resources. By outsourcing IT tasks (e.g., to IT suppliers or software developers), enterprises are able to focus on their core functions and save internal resources and costs (e.g., office space, maintenance, and utilities). Thus, outsourcing teams becomes a viable cost resilience strategy in an environment where companies are looking to save money more than ever.

In an IT context, these activities include IT administration, IT application, and web hosting services. Non-IT-related outsourcing services are excluded.

Structure:

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

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.
Application Outsourcing refers to the market for all IT application services in a software production context, spanning from requirement assessments to concept and design of software applications.
Web Hosting includes all types of internet hosting services that allow companies or individuals to provide access to their web page via the World Wide Web.
Other IT Outsourcing refers to aggregated revenues of the types of IT outsourcing that are not specifically mentioned in the other IT Outsourcing markets, such as infrastructure outsourcing, network outsourcing, and managed services.

Additional Information:

The IT Outsourcing market comprises revenues, revenue change, average spend per employee, and revenues of the outsourcing types. 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, Accenture, Capgemini, NTT, and Hewlett Packard Enterprise.

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Market

Region

Region comparison

Currency

Analyst Opinion

The IT Outsourcing market in Benin has been steadily growing in recent years, driven by several factors unique to the region.

Customer preferences: One major factor driving the growth of the IT Outsourcing market in Benin is the increasing demand for cost-effective technology solutions among businesses in the region. Many companies in Benin are looking for ways to reduce their operational costs while still maintaining high levels of efficiency and productivity, and outsourcing IT services to third-party providers has become an increasingly popular way to achieve this goal. Additionally, many businesses in Benin are looking for specialized IT services that may not be available locally, such as cybersecurity and cloud computing solutions.

Trends in the market: One of the key trends in the IT Outsourcing market in Benin is the growing popularity of cloud-based solutions. Many businesses in the region are shifting away from traditional on-premises IT infrastructure in favor of cloud-based solutions that offer greater flexibility and scalability. This trend is being driven in part by the increasing availability of high-speed internet connectivity in Benin, which is making it easier for businesses to access cloud-based services.Another trend in the IT Outsourcing market in Benin is the increasing focus on cybersecurity. As more businesses in the region turn to third-party providers for IT services, there is a growing need for robust cybersecurity solutions to protect against the risk of cyber attacks and data breaches. This trend is being driven by a combination of factors, including the increasing sophistication of cyber threats and the growing awareness among businesses of the importance of cybersecurity.

Local special circumstances: One of the unique factors driving the growth of the IT Outsourcing market in Benin is the country's relatively young and rapidly growing population. With a median age of just 18 years old, Benin has one of the youngest populations in the world, and this demographic trend is creating a growing demand for technology solutions across a range of industries. Additionally, the country's strategic location on the west coast of Africa makes it an attractive destination for businesses looking to expand their operations in the region.

Underlying macroeconomic factors: The growth of the IT Outsourcing market in Benin is also being supported by a number of underlying macroeconomic factors, including the country's stable political environment, improving infrastructure, and growing economy. In recent years, the government of Benin has made significant investments in infrastructure development, including the expansion of the country's ports and airports, which has helped to improve connectivity and reduce the cost of doing business in the region. Additionally, Benin's economy has been growing at a steady pace in recent years, driven by a combination of factors including increased investment in the country's agricultural sector, which is a major contributor to the country's GDP.

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.