IT Outsourcing - Zimbabwe

Zimbabwe

Revenue in the IT Outsourcing market is projected to reach US$81.13m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 8.82%, resulting in a market volume of US$123.80m by 2029.
The average Spend per Employee in the IT Outsourcing market is projected to reach US$12.11 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 Zimbabwe has been developing steadily over the past few years, with an increasing number of companies turning to outsourcing as a way to reduce costs and improve efficiency.

Customer preferences: Zimbabwean companies are increasingly interested in outsourcing IT services, particularly software development, website design, and technical support. This is due to the high cost of hiring and training in-house staff, as well as the need for specialized skills that may not be available locally. Companies are also looking to outsource to take advantage of the latest technologies and innovations.

Trends in the market: One of the key trends in the IT Outsourcing market in Zimbabwe is the growth of the mobile app development sector. With the increasing popularity of smartphones and mobile devices, companies are looking to develop apps that can be used on these devices to reach a wider audience. Another trend is the rise of cloud computing, which is enabling companies to store and access data more efficiently and cost-effectively.

Local special circumstances: Zimbabwe has a large pool of highly skilled IT professionals, many of whom have experience working for international companies. This has made the country an attractive location for outsourcing, as companies can access this talent at a lower cost than they would in other countries. Additionally, Zimbabwe has a relatively stable political and economic environment, which makes it a safe and secure location for outsourcing.

Underlying macroeconomic factors: The IT Outsourcing market in Zimbabwe is being driven by a number of macroeconomic factors, including the need for cost reduction and efficiency improvement, as well as the increasing demand for specialized skills and expertise. Additionally, the growth of the mobile app development sector and the rise of cloud computing are contributing to the expansion of the market. Overall, the IT Outsourcing market in Zimbabwe is expected to continue to grow in the coming years, as more companies look to take advantage of the benefits of outsourcing.

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.