IT Outsourcing - Lesotho

Lesotho

Lesotho, a country in southern Africa, is set to witness significant growth in its IT Outsourcing market.
According to projections, the revenue in this market is expected to reach US$7.73m by 2025.
Furthermore, an annual growth rate of 7.93% is anticipated from 2025 to 2029, resulting in a market volume of US$10.49m by the end of the forecast period.
In terms of spending per employee, the average is estimated to be US$7.52 in 2025.
This indicates the potential for substantial investment and development within the IT Outsourcing market sector.
It is worth noting that, on a global scale, United States is expected to generate the highest revenue in the IT Outsourcing market, reaching a staggering US$213.60bn in 2025.
This highlights the dominant position of the United States in this industry.
Lesotho is emerging as a competitive player in the IT outsourcing market, leveraging its skilled workforce and cost-effective solutions.

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

Lesotho, a small country in Southern Africa, is slowly emerging as a potential destination for IT outsourcing.

Customer preferences: Lesotho's IT outsourcing market is still in its nascent stages, with most of the demand coming from the government and the financial sector. However, there is a growing interest among small and medium-sized enterprises (SMEs) in the country to outsource their IT services to reduce costs and improve efficiency. The preference for outsourcing is driven by the need to access specialized skills and technologies that are not available locally.

Trends in the market: One of the key trends in the IT outsourcing market in Lesotho is the increasing adoption of cloud-based services. This is driven by the need to reduce capital expenditure on IT infrastructure and the desire to access the latest technologies. Another trend is the growing interest in outsourcing non-core business processes such as human resources and finance and accounting. This is driven by the need to focus on core competencies and reduce operational costs.

Local special circumstances: Lesotho has a small but growing pool of IT professionals who are well-educated and proficient in English. The government is also taking steps to promote the development of the IT industry in the country by investing in infrastructure and providing incentives to attract foreign investors. However, the lack of a well-developed IT ecosystem and the limited availability of high-speed internet connectivity remain major challenges for the IT outsourcing industry in Lesotho.

Underlying macroeconomic factors: The IT outsourcing market in Lesotho is influenced by a range of macroeconomic factors, including political stability, economic growth, and the availability of skilled labor. Lesotho has a stable political environment and a relatively small but growing economy. However, the country faces significant challenges in terms of poverty, unemployment, and inequality, which could affect the long-term growth prospects of the IT outsourcing industry. Additionally, the COVID-19 pandemic has had a significant impact on the global economy, and the IT outsourcing industry in Lesotho is not immune to these effects. In conclusion, while the IT outsourcing market in Lesotho is still in its early stages, there are several positive trends and developments that suggest it has the potential to grow in the future. However, the industry faces several challenges, including the lack of a well-developed IT ecosystem and the limited availability of high-speed internet connectivity. The government's efforts to promote the development of the IT industry and the growing interest among SMEs in outsourcing their IT services are positive signs for the future of the industry in Lesotho.

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.