IT Services - Lesotho

Lesotho

Revenue in the IT Services market is projected to reach US$20.42m in 2024.
IT Outsourcing dominates the market with a projected market volume of US$7.04m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 5.25%, resulting in a market volume of US$26.37m by 2029.
The average Spend per Employee in the IT Services market is projected to reach US$20.17 in 2024.
In global comparison, most revenue will be generated in the United States (US$522.00bn in 2024).

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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Market

Region

Region comparison

Currency

Analyst Opinion

Lesotho, a small country located in Southern Africa, has seen significant growth in its IT Services market in recent years.

Customer preferences: Lesotho's IT Services market is primarily driven by the demand for software development and maintenance services. This is due to the increasing use of technology by businesses and the government to improve efficiency and productivity. Additionally, there is a growing demand for cloud computing and cybersecurity services as more companies seek to protect their data and infrastructure.

Trends in the market: One of the major trends in Lesotho's IT Services market is the increasing adoption of mobile technology. This has led to a rise in demand for mobile app development and mobile device management services. Another trend is the growth of e-commerce, which has created opportunities for companies providing digital marketing and online payment solutions.

Local special circumstances: Lesotho's small size and limited resources have presented challenges for the development of its IT Services market. However, the government has implemented policies to promote the growth of the sector, including tax incentives for IT companies and the establishment of an innovation hub to support startups. Additionally, the country's membership in the Southern African Development Community (SADC) provides access to a larger market and opportunities for cross-border collaboration.

Underlying macroeconomic factors: Lesotho's IT Services market is influenced by broader economic factors such as GDP growth, foreign investment, and government spending on technology. The country's economy has been growing steadily in recent years, driven by the textile and garment industry, which has created opportunities for IT services supporting supply chain management and logistics. However, Lesotho's economy remains vulnerable to external shocks such as changes in global demand for textiles and fluctuations in commodity prices.

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.