IT Outsourcing - Senegal

Senegal

Revenue in the IT Outsourcing market is projected to reach US$86.43m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 12.09%, resulting in a market volume of US$152.90m by 2029.
The average Spend per Employee in the IT Outsourcing market is projected to reach US$15.38 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

Senegal, a country in West Africa, has been experiencing a steady growth in its IT outsourcing market in recent years.

Customer preferences: One of the main reasons for this growth is the increasing demand for cost-effective IT solutions among businesses in Senegal. Many companies are looking to outsource their IT needs to reduce costs and improve efficiency. Additionally, Senegal's strategic location and its proficiency in the French language have made it an attractive outsourcing destination for companies in Europe and Canada.

Trends in the market: Another trend in the IT outsourcing market in Senegal is the rising demand for cloud computing services. As more businesses move their operations online, the need for cloud-based solutions has increased. This has led to the emergence of several cloud computing service providers in Senegal. Additionally, there has been a growing interest in artificial intelligence and machine learning, which has spurred the development of IT outsourcing companies that specialize in these areas.

Local special circumstances: Senegal's government has been actively promoting the country as an outsourcing destination. The government has implemented policies to encourage foreign investment, such as tax incentives and streamlined bureaucratic processes. Additionally, the country's young and educated workforce, with a high percentage of graduates in STEM fields, has made it an attractive destination for IT outsourcing companies.

Underlying macroeconomic factors: Senegal's economy has been growing steadily in recent years, with a focus on developing its infrastructure and expanding its service sector. This has created opportunities for IT outsourcing companies to provide services to both local and international clients. Additionally, Senegal's membership in the Economic Community of West African States (ECOWAS) has opened up access to a larger market and increased opportunities for cross-border trade. In conclusion, Senegal's IT outsourcing market is growing due to a combination of factors, including cost-effective solutions, a strategic location, a growing interest in cloud computing and AI, government support, and a young and educated workforce. As Senegal's economy continues to develop, the IT outsourcing market is expected to continue to grow, providing opportunities for both domestic and international IT companies.

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.