IT Outsourcing - Botswana

Botswana

Revenue in the IT Outsourcing market is projected to reach US$53.91m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 11.10%, resulting in a market volume of US$91.26m by 2029.
The average Spend per Employee in the IT Outsourcing market is projected to reach US$44.48 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

Botswana, a landlocked country in Southern Africa, has been experiencing a steady growth in its IT outsourcing market.

Customer preferences: The country has a young and tech-savvy population that is increasingly demanding digital solutions for their daily activities. This has led to a rise in the demand for IT services, including software development, website design, and digital marketing. Additionally, the government's push towards e-governance and digital transformation has further increased the demand for IT outsourcing services.

Trends in the market: One of the major trends in the IT outsourcing market in Botswana is the rise of mobile application development. With the increasing use of smartphones, businesses are looking to develop mobile applications to reach their customers more effectively. Another trend is the growing interest in cybersecurity. As more businesses move their operations online, the need for cybersecurity services has become more pressing. This has led to an increase in the demand for IT security outsourcing services.

Local special circumstances: Botswana's IT outsourcing market is relatively small compared to other countries in the region, such as South Africa and Kenya. However, the country's stable political environment, well-developed infrastructure, and skilled workforce have made it an attractive destination for IT outsourcing. Additionally, the government's commitment to promoting the country's ICT sector through initiatives such as the Botswana Innovation Hub has helped to create a favorable environment for IT outsourcing.

Underlying macroeconomic factors: Botswana's economy has been growing steadily over the past few years, driven by the mining sector and the government's efforts to diversify the economy. This has led to an increase in disposable income, which has in turn fueled the demand for digital services. Additionally, the country's strategic location in the region has made it an attractive destination for international businesses looking to outsource their IT services.In conclusion, Botswana's IT outsourcing market is on an upward trajectory, driven by the increasing demand for digital services, the government's commitment to promoting the ICT sector, and the country's favorable business environment. As businesses continue to embrace digital transformation, the demand for IT outsourcing services is likely to continue growing in Botswana.

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.