IT Outsourcing - Namibia

Namibia

Revenue in the IT Outsourcing market is projected to reach US$36.21m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 9.17%, resulting in a market volume of US$56.16m by 2029.
The average Spend per Employee in the IT Outsourcing market is projected to reach US$36.28 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

Namibia, a country in Southern Africa, has experienced significant growth in its IT outsourcing market in recent years.

Customer preferences: Namibia's IT outsourcing market is primarily driven by the demand for cost-effective solutions and the need for specialized skills. Many businesses in Namibia prefer to outsource their IT services to reduce costs and gain access to skilled professionals who can provide high-quality services.

Trends in the market: One of the key trends in Namibia's IT outsourcing market is the increasing adoption of cloud-based solutions. Cloud-based services offer businesses greater flexibility and scalability, allowing them to easily scale up or down as their needs change. Another trend is the growing popularity of outsourcing services for mobile app development, as more businesses recognize the importance of having a mobile presence.

Local special circumstances: Namibia's IT outsourcing market is relatively small compared to other countries in the region, but it is growing rapidly. One of the unique aspects of Namibia's market is the high level of government involvement in promoting the growth of the IT sector. The government has implemented various initiatives to encourage the development of the IT industry, such as tax incentives and training programs for IT professionals.

Underlying macroeconomic factors: Namibia's IT outsourcing market is benefiting from the country's overall economic growth and stability. The government has implemented policies to promote foreign investment and business development, which has helped to attract international companies to the country. Additionally, Namibia's strategic location and strong telecommunications infrastructure make it an attractive destination for outsourcing services.

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.