IT Outsourcing - Chad

Chad

Revenue in the IT Outsourcing market is projected to reach US$34.08m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 9.16%, resulting in a market volume of US$52.83m by 2029.
The average Spend per Employee in the IT Outsourcing market is projected to reach US$5.70 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

Chad, a landlocked country in Central Africa, is slowly emerging as an IT outsourcing destination in the region.

Customer preferences: Chad has a small IT outsourcing market that is primarily driven by the government and a few large corporations. Most of the outsourcing work is related to software development and maintenance. The country has a pool of young and talented IT professionals who are proficient in French and English, which makes it an attractive destination for companies looking to outsource their IT work.

Trends in the market: The IT outsourcing market in Chad is still in its nascent stage, but it is growing steadily. The country is investing heavily in its IT infrastructure, which is attracting more companies to set up their operations in the country. The government is also taking steps to promote the IT sector and provide incentives to companies that are willing to invest in the country.

Local special circumstances: Chad is a challenging market for IT outsourcing due to its poor infrastructure, lack of a skilled workforce, and political instability. However, the government is working to improve the infrastructure and create a more business-friendly environment. The country has a young population, which is a significant advantage for the IT sector as it provides a large pool of talented professionals.

Underlying macroeconomic factors: Chad's economy is heavily dependent on oil exports, which account for over 90% of the country's export earnings. The country has been hit hard by the decline in oil prices, which has led to a decline in government revenue and a slowdown in economic growth. However, the government is taking steps to diversify the economy and reduce its dependence on oil. The IT sector is one of the areas that the government is focusing on, and it has identified it as a key sector for economic growth and job creation.In conclusion, Chad's IT outsourcing market is still in its early stages, but it has the potential to grow significantly in the coming years. The country has a young and talented workforce, and the government is taking steps to promote the IT sector and create a more business-friendly environment. However, the country still faces significant challenges such as poor infrastructure and political instability. Companies that are willing to invest in the country will need to navigate these challenges, but they could reap significant rewards in the long run.

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.