IT Outsourcing - Tunisia

Tunisia

Revenue in the IT Outsourcing market is projected to reach US$125.30m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 8.20%, resulting in a market volume of US$185.80m by 2029.
The average Spend per Employee in the IT Outsourcing market is projected to reach US$28.79 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

Tunisia, a North African nation, has been making strides in the IT Outsourcing market in recent years.

Customer preferences: Tunisia has a pool of highly skilled and multilingual workforce, making it an attractive destination for IT Outsourcing. The country's proximity to Europe and the Middle East also makes it a convenient location for companies looking to outsource their IT services. Additionally, the cost of labor in Tunisia is relatively lower compared to other countries in the region, making it a cost-effective option for businesses.

Trends in the market: The IT Outsourcing market in Tunisia has been growing steadily in recent years, with the country's government actively promoting the sector. The government has implemented policies to attract foreign investment, such as tax incentives and subsidies, which have been successful in attracting foreign companies to set up operations in the country. Furthermore, the country's IT sector has been expanding rapidly, with the number of IT graduates increasing each year. This has led to an increase in the number of IT service providers in the country, offering a wide range of services such as software development, application management, and infrastructure management.

Local special circumstances: Tunisia has a unique advantage in the IT Outsourcing market due to its location and cultural proximity to Europe. The country has a strong French and English language proficiency, which is a major advantage for companies looking to outsource their IT services to countries in Europe. Additionally, the country has a well-developed telecommunications infrastructure, which makes it easier for companies to communicate with their outsourced teams.

Underlying macroeconomic factors: The Tunisian government has been implementing policies to promote economic growth and attract foreign investment. The country's stable political environment and strategic location have made it an attractive destination for foreign investors. Furthermore, the government has been investing in the country's education system, which has led to an increase in the number of highly skilled graduates in the IT sector. The country's membership in the World Trade Organization has also helped to open up its economy and attract foreign investment.

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.