IT Services - Nigeria

Nigeria

Revenue in the IT Services market is projected to reach US$2.17bn in 2024.
IT Outsourcing dominates the market with a projected market volume of US$0.82bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 13.18%, resulting in a market volume of US$4.03bn by 2029.
The average Spend per Employee in the IT Services market is projected to reach US$27.82 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

The demand for IT services in Nigeria has been on the rise in recent years, driven by a growing economy and increasing adoption of technology across various industries.

Customer preferences: Nigerian businesses are increasingly recognizing the importance of digital transformation and are seeking IT services to help them achieve their goals. These services include software development, cloud computing, cybersecurity, and data analytics. Additionally, there is a growing demand for mobile application development as more Nigerians are accessing the internet through their smartphones.

Trends in the market: One of the key trends in the IT services market in Nigeria is the increasing adoption of cloud computing. This is driven by the need for businesses to reduce costs and improve efficiency. Another trend is the growing importance of cybersecurity, as businesses become more aware of the risks associated with cyber threats. Data analytics is also becoming increasingly important as businesses seek to make data-driven decisions.

Local special circumstances: Nigeria is the largest economy in Africa and has a relatively young and tech-savvy population. This has created a unique opportunity for IT services providers to cater to the needs of a growing market. However, the country also faces challenges such as poor infrastructure and a lack of skilled workers, which can limit the growth potential of the IT services market.

Underlying macroeconomic factors: Nigeria's economy has been growing in recent years, driven by the oil and gas industry as well as the services sector. This has led to increased investment in technology and a growing demand for IT services. However, the country also faces challenges such as political instability and corruption, which can impact the business environment. Additionally, the COVID-19 pandemic has had a significant impact on the economy and the IT services market, with many businesses forced to adapt to remote work and digital solutions.

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.