IT Outsourcing - Ghana

Ghana

Ghana is expected to witness significant growth in the IT Outsourcing market.
Revenue in this market is projected to reach US$200.40m in 2024.
Furthermore, it is anticipated that the market will experience a steady annual growth rate of 9.63% from 2024 to 2029, resulting in a market volume of US$317.30m by 2029.
In terms of average spend per employee, in Ghana is expected to reach US$13.26 in 2024.
This indicates the potential for increased investment and development within the IT Outsourcing market sector.
Although in Ghana shows promising growth, it is important to note that United States remains the global leader in terms of revenue generation.
In 2024, United States is projected to generate a staggering US$197.30bn in revenue within the IT Outsourcing market.
This highlights the dominance of the US in this industry on a global scale.
Ghana's IT outsourcing market is booming, with a highly skilled workforce and a favorable business environment attracting international companies.

Key regions: Brazil, Italy, United States, China, Germany

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

Ghana, a West African country known for its rich culture and history, is also becoming a notable player in the IT outsourcing market.

Customer preferences: Ghana's IT outsourcing market is primarily driven by the demand for cost-effective services. Many international companies are turning to Ghana for outsourcing services due to the country's lower labor costs compared to developed countries. Additionally, Ghana has a large pool of young and skilled IT professionals who are proficient in English, making it an attractive destination for outsourcing services.

Trends in the market: One of the notable trends in the IT outsourcing market in Ghana is the growth of the software development sector. Many IT outsourcing companies in Ghana are now offering software development services to clients, which has resulted in an increase in demand for skilled software developers. Another trend is the rise of cloud computing services, which has led to an increase in demand for cloud-based solutions.

Local special circumstances: Ghana's stable political environment and growing economy have contributed to the growth of the IT outsourcing market in the country. Additionally, the Ghanaian government has implemented policies aimed at promoting the growth of the IT sector, which has created a favorable environment for IT outsourcing companies. The country's membership in the Economic Community of West African States (ECOWAS) has also made it an attractive destination for outsourcing services due to its proximity to other West African countries.

Underlying macroeconomic factors: The growth of the IT outsourcing market in Ghana is also linked to the country's macroeconomic factors. Ghana's GDP growth has been consistently high in recent years, and the country is projected to be one of the fastest-growing economies in Africa. Additionally, the country's stable currency and low inflation rate have contributed to the growth of the IT outsourcing market. The government's investment in infrastructure, such as the expansion of the fiber optic network, has also made it easier for IT outsourcing companies to operate in the country.In conclusion, the IT outsourcing market in Ghana is growing due to a combination of factors such as cost-effective services, a large pool of skilled IT professionals, a stable political environment, and favorable macroeconomic factors. As the demand for IT outsourcing services continues to grow globally, Ghana is poised to become a major player in the industry.

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.