IT Outsourcing - Morocco

Morocco

Revenue in the IT Outsourcing market is projected to reach US$353.70m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 9.31%, resulting in a market volume of US$552.00m by 2029.
The average Spend per Employee in the IT Outsourcing market is projected to reach US$27.47 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

Morocco, a North African country, is known for its bustling marketplaces and rich culture. However, in recent years, the country has also made a name for itself in the IT outsourcing market.

Customer preferences: Morocco's IT outsourcing market has seen a rise in demand for software development, web development, and IT support services. This demand is mainly from European countries due to the country's proximity and cultural similarities. Additionally, Moroccan IT outsourcing companies are known for their cost-effectiveness, which has attracted small and medium-sized enterprises (SMEs) from Europe.

Trends in the market: One of the significant trends in Morocco's IT outsourcing market is the growth of the country's tech startup ecosystem. This growth has been supported by the government's initiatives to promote entrepreneurship and innovation, which has resulted in the establishment of several tech hubs and incubators. These startups are now providing IT outsourcing services to clients worldwide, which is contributing to the growth of the country's IT outsourcing market.Another trend is the increasing use of emerging technologies such as Artificial Intelligence (AI), Blockchain, and the Internet of Things (IoT) in the IT outsourcing industry. Moroccan IT outsourcing companies are investing in these technologies to provide innovative solutions to their clients, which has resulted in an increase in demand for their services.

Local special circumstances: Morocco's strategic location and cultural similarities with Europe have made it an attractive destination for IT outsourcing. Additionally, the country's government has implemented several policies to promote the growth of the IT sector, which has resulted in the establishment of several IT outsourcing companies.

Underlying macroeconomic factors: Morocco's IT outsourcing market is also benefiting from the country's stable political environment and economic growth. The country has implemented several reforms to improve its business environment, which has resulted in an increase in foreign investment. Additionally, the government's focus on developing the country's infrastructure has resulted in the establishment of several technology parks and special economic zones, which has further contributed to the growth of the IT outsourcing industry.In conclusion, Morocco's IT outsourcing market is experiencing significant growth due to its proximity to Europe, cost-effectiveness, and the government's initiatives to promote entrepreneurship and innovation. The growth of the country's tech startup ecosystem and the increasing use of emerging technologies are contributing to the growth of the IT outsourcing industry. The stable political environment and economic growth are also attracting foreign investment, which is further boosting the growth of the sector.

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.