IT Outsourcing - Burkina Faso

Burkina Faso

Revenue in the IT Outsourcing market is projected to reach US$50.31m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 10.93%, resulting in a market volume of US$84.52m by 2029.
The average Spend per Employee in the IT Outsourcing market is projected to reach US$5.59 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 Burkina Faso has been steadily developing over the past few years.

Customer preferences: Burkina Faso has a young and educated population, with a growing number of individuals pursuing careers in the technology sector. As a result, there is a strong demand for IT outsourcing services to support businesses and organizations in the country. Additionally, many companies in Burkina Faso are seeking cost-effective solutions to their IT needs, which has led to an increase in outsourcing to other countries in the region.

Trends in the market: One of the key trends in the IT outsourcing market in Burkina Faso is the growing focus on cloud-based solutions. Many companies are looking to move their IT infrastructure to the cloud in order to reduce costs and improve efficiency. This has led to an increase in demand for cloud-based outsourcing services, such as software-as-a-service (SaaS) and infrastructure-as-a-service (IaaS).Another trend in the market is the increasing use of mobile technology. With the widespread adoption of smartphones and other mobile devices in Burkina Faso, there is a growing need for mobile app development and other mobile-related services. As a result, many IT outsourcing companies in the country are focusing on building their capabilities in this area.

Local special circumstances: One of the unique challenges facing the IT outsourcing market in Burkina Faso is the limited availability of reliable internet connectivity. While the country has made significant progress in improving its telecommunications infrastructure in recent years, there are still many areas where internet access is limited or unreliable. This can make it difficult for IT outsourcing companies to deliver services to clients in these areas.

Underlying macroeconomic factors: Burkina Faso is one of the fastest-growing economies in West Africa, with a young and rapidly growing population. This has led to a surge in demand for technology services, including IT outsourcing. Additionally, the government has been actively promoting the development of the technology sector in the country, which has helped to create a favorable environment for IT outsourcing companies to operate in. However, the country still faces significant challenges in terms of infrastructure development and political stability, which could impact the long-term growth of the IT outsourcing market.

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.