IT Services - Southern Africa

Southern Africa

Revenue in the IT Services market is projected to reach US$6.58bn in 2024.
IT Outsourcing dominates the market with a projected market volume of US$2.34bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 5.08%, resulting in a market volume of US$8.43bn by 2029.
The average Spend per Employee in the IT Services market is projected to reach US$227.10 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 IT Services market in Southern Africa is experiencing steady growth and development in recent years. The region is home to a diverse set of economies, ranging from developed to emerging markets, which has led to various trends and developments in the IT Services market.

Customer preferences: Customers in Southern Africa are increasingly looking for IT Services that can help them improve their operational efficiency, reduce costs, and enhance their overall competitiveness. As a result, there is a growing demand for cloud-based solutions, cybersecurity services, and data analytics tools. Additionally, customers are also seeking IT Services that can help them navigate the rapidly evolving regulatory landscape in the region.

Trends in the market: One of the key trends in the IT Services market in Southern Africa is the increasing adoption of cloud-based solutions. This is driven by the need for more flexible and scalable IT infrastructure, as well as the growing availability of high-speed internet connectivity in the region. Another trend is the rising demand for cybersecurity services, as companies seek to protect themselves against the growing threat of cyber attacks. Finally, there is also a growing interest in data analytics tools, as companies look to leverage their data to gain insights and improve decision-making.

Local special circumstances: Southern Africa is home to a diverse set of economies, each with its own unique set of challenges and opportunities. For example, South Africa is the most developed economy in the region and has a relatively mature IT Services market. In contrast, countries like Zimbabwe and Mozambique are still emerging markets with significant growth potential. Additionally, there are also cultural and linguistic differences across the region that can impact customer preferences and market dynamics.

Underlying macroeconomic factors: The IT Services market in Southern Africa is influenced by a range of macroeconomic factors, including GDP growth, inflation, and political stability. For example, countries with higher GDP growth rates tend to have stronger demand for IT Services, as companies look to invest in technology to drive their growth. Similarly, political instability can lead to uncertainty and volatility in the market, which can impact customer spending on IT Services. Finally, inflation can also impact the affordability of IT Services, particularly for smaller businesses.

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.