IT Outsourcing - Togo

Togo

Revenue in the IT Outsourcing market is projected to reach US$17.30m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 10.74%, resulting in a market volume of US$28.81m by 2029.
The average Spend per Employee in the IT Outsourcing market is projected to reach US$5.25 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

The IT Outsourcing market in Togo has been experiencing a steady growth in recent years.

Customer preferences: Togolese businesses have been increasingly turning to IT outsourcing for cost-effective solutions to their IT needs. As the country's economy continues to grow, businesses are looking for ways to streamline their operations and improve efficiency. Outsourcing IT services allows them to focus on their core business functions while leaving the technical aspects to experts. Additionally, the availability of a skilled workforce in the country has made it easier for businesses to outsource their IT needs locally.

Trends in the market: One of the major trends in the IT outsourcing market in Togo is the increasing adoption of cloud-based solutions. Cloud computing has become increasingly popular due to its flexibility, scalability, and cost-effectiveness. Businesses are also leveraging emerging technologies such as artificial intelligence and machine learning to improve their operations and gain a competitive edge. Another trend is the rise of mobile app development outsourcing as businesses seek to capitalize on the growing number of mobile users in the country.

Local special circumstances: Togo has a relatively small IT outsourcing market compared to other countries in the region. However, the government has been taking steps to promote the growth of the sector. In 2018, the government launched a program to support the development of the country's digital economy. The program aims to provide training and support to local startups and entrepreneurs in the tech sector. Additionally, the government has been investing in the country's telecommunications infrastructure, which has improved the quality and availability of internet services.

Underlying macroeconomic factors: The growth of the IT outsourcing market in Togo is closely tied to the country's overall economic growth. Togo has been experiencing steady economic growth in recent years, driven by sectors such as agriculture, mining, and services. The government has also been implementing economic reforms aimed at improving the business environment and attracting foreign investment. Additionally, the country has a relatively young and tech-savvy population, which has created a favorable environment for the growth of the IT outsourcing 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.