IT Services - Northern Africa

Northern Africa

Revenue in the IT Services market is projected to reach US$5.99bn in 2024.
Business Process Outsourcing dominates the market with a projected market volume of US$2.14bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 6.95%, resulting in a market volume of US$8.38bn by 2029.
The average Spend per Employee in the IT Services market is projected to reach US$77.36 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

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Currency

Analyst Opinion

The IT Services market in Northern Africa has been experiencing significant growth in recent years, driven by a variety of factors.

Customer preferences: Customers in Northern Africa are increasingly demanding IT services that are tailored to their specific needs. This has led to a rise in demand for customized software solutions and cloud-based services. Additionally, customers are placing a greater emphasis on cybersecurity and data protection, which has led to increased demand for IT security services.

Trends in the market: One of the key trends in the IT Services market in Northern Africa is the rise of outsourcing. Many companies are choosing to outsource their IT services to third-party providers in order to reduce costs and improve efficiency. This trend is particularly prevalent in countries such as Egypt and Morocco.Another trend is the increasing adoption of cloud-based services. Cloud computing is becoming more popular in Northern Africa due to its cost-effectiveness and flexibility. This trend is expected to continue in the coming years, with more and more companies moving their IT infrastructure to the cloud.

Local special circumstances: One of the unique challenges facing the IT Services market in Northern Africa is the lack of infrastructure in many countries. This can make it difficult for companies to access reliable internet and technology services. However, this challenge is also driving innovation, with many companies developing new solutions to overcome these infrastructure limitations.

Underlying macroeconomic factors: The IT Services market in Northern Africa is also being driven by broader macroeconomic factors. For example, many countries in the region are experiencing rapid economic growth, which is leading to increased demand for IT services. Additionally, there is a growing startup culture in many countries, which is driving demand for IT services that can help these companies grow and succeed.Overall, the IT Services market in Northern Africa is poised for continued growth in the coming years. As customer preferences continue to evolve and new technologies emerge, companies in the region will need to stay agile and adapt to these changes in order to remain competitive.

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.