IT Outsourcing - Central Africa

Central Africa

Revenue in the IT Outsourcing market is projected to reach US$496.00m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 9.65%, resulting in a market volume of US$786.20m by 2029.
The average Spend per Employee in the IT Outsourcing market is projected to reach US$12.95 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

Central Africa, a region known for its rich cultural heritage, is experiencing a surge in its IT Outsourcing market. As more and more businesses look to outsource their IT functions to cut costs and improve efficiency, Central Africa has become an attractive destination for outsourcing services.

Customer preferences: Customers in Central Africa are increasingly looking for cost-effective and high-quality IT outsourcing solutions. With the rise of digital transformation, businesses are recognizing the importance of IT in their operations and are seeking reliable outsourcing partners to help them achieve their goals. Additionally, customers are looking for outsourcing partners who can provide customized solutions to meet their specific needs.

Trends in the market: One of the major trends in the IT outsourcing market in Central Africa is the growth of the software development industry. With a large pool of talented developers, Central Africa is becoming a hub for software development outsourcing. Another trend is the rise of cloud-based services, which are becoming increasingly popular among businesses looking to reduce costs and improve efficiency. Additionally, there is a growing trend towards outsourcing non-core business functions, such as customer support and data entry, to Central Africa.

Local special circumstances: Central Africa has a unique set of circumstances that make it an attractive destination for outsourcing services. The region has a large pool of young, talented and highly educated professionals who are proficient in English and French, which are the primary languages used in outsourcing. Additionally, the cost of living in Central Africa is relatively low, which makes it an affordable destination for outsourcing services.

Underlying macroeconomic factors: The IT outsourcing market in Central Africa is being driven by a number of underlying macroeconomic factors. The region has a growing economy and a stable political environment, which makes it an attractive destination for foreign investment. Additionally, Central Africa has a large and growing middle class, which is driving demand for IT outsourcing services. Finally, the region has a strong cultural affinity with Western countries, which makes it an ideal destination for outsourcing services from Europe and North America. In conclusion, the IT outsourcing market in Central Africa is experiencing significant growth due to a combination of customer preferences, local special circumstances and underlying macroeconomic factors. As more businesses look to outsource their IT functions, Central Africa is poised to become a major player in the global 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.