IT Services - Kenya

Kenya

Kenya's IT Services market is expected to experience significant growth in the coming years.
According to projections, the market is expected to reach a revenue of KES US$792.60m by 2024.
Among the various segments within the market, IT Outsourcing is predicted to dominate with a projected market volume of KES US$292.20m in the same year.
The IT Services market in Kenya is anticipated to exhibit a steady annual growth rate of 7.43% from 2024 to 2029, resulting in a market volume of KES US$1,134.00m by the end of the forecast period.
Furthermore, the average spend per employee in the IT Services market is projected to reach KES US$29.84 in 2024.
This metric provides insights into the level of investment made by businesses in Kenya to leverage IT services.
In a global comparison, United States is expected to generate the highest revenue in the IT Services market, with an estimated amount of US$522.00bn in 2024.
This indicates the dominant position of the United States in the global IT Services market landscape.
Kenya's IT Services market is experiencing rapid growth, driven by the country's tech-savvy population and increasing investment in digital infrastructure.

Key regions: United States, China, India, Japan, Germany

Definition:
The IT Services market encompasses a wide range of services used by organizations to create, manage, and deliver information, and it includes services that provide assistance with various other business functions. The primary goal of IT services is to ensure that information technology infrastructure, applications, and systems are effectively implemented, operated, and optimized to support an organization's business objectives and requirements. The specific range of services offered may vary depending on the service provider and the client's requirements.

Structure:

IT Services contains four distinct markets that are based on different services:

IT Consulting & Implementation covers advisory services that help businesses evaluate their technology strategies and align them with their business strategies or internal processes.
Business Process Outsourcing (BPO) refers to the transfer of entire business processes or individual activities from a company to a third party and is often IT based. BPO covers a wide variety of business processes, usually either in the back office (e.g., human resources) or in the front office (e.g., customer service in call centers).
IT Outsourcing refers to the external contracting of all IT-related services instead of relying on company-owned resources. In an IT context, these activities include IT administration, IT application, and web hosting services.
The Other IT Services market covers revenues for areas that are not specifically mentioned in the other markets, such as system integration, software installation and support, and IT education and training.

Additional Information:

The IT Services market comprises revenues, revenue change, average spend per employee, and a list of the key players in the market and their consolidated revenues. 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, Cognizant, Hewlett Packard Enterprise, and TCS.

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Analyst Opinion

The IT Services market in Kenya has experienced significant growth in recent years.

Customer preferences: Kenyan customers have shown a preference for IT services that can improve their business operations and increase efficiency. Cloud computing services, for example, have become increasingly popular in Kenya as they offer businesses a cost-effective way to store and manage their data. Additionally, there has been a growing demand for cybersecurity services as businesses seek to protect their data from cyber threats.

Trends in the market: One major trend in the IT Services market in Kenya is the increasing adoption of mobile technology. With the rise of mobile devices in Kenya, there has been a growing demand for mobile app development and mobile device management services. Another trend is the increasing use of artificial intelligence (AI) and machine learning (ML) in IT services. Kenyan businesses are beginning to recognize the benefits of AI and ML in improving their operations and decision-making processes.

Local special circumstances: Kenya has a large and growing technology sector, with a number of local startups and tech companies. This has created a fertile environment for the development of IT services in the country. Additionally, Kenya has a relatively young and tech-savvy population, which has contributed to the growth of the IT Services market.

Underlying macroeconomic factors: Kenya's economy has been growing steadily in recent years, which has contributed to the growth of the IT Services market. Additionally, the government has made efforts to promote the development of the technology sector in the country, which has created a favorable business environment for IT services providers.

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.