IT Services - Tanzania

Tanzania

In 2025, the projected revenue in the IT Services market in Tanzania is expected to reach US$617.90m.
IT Outsourcing holds the dominant position in this market segment, with a projected market volume of US$220.80m in the same year.
Looking ahead, the revenue is anticipated to exhibit an annual growth rate (CAGR 2025-2029) of 9.99%, resulting in a market volume of US$904.30m by 2029.
Furthermore, the average Spend per Employee in the IT Services market is projected to reach US$18.19 in 2025.
In a global comparison, United States is projected to generate the highest revenue, amounting to US$550.30bn in 2025.
Tanzania is experiencing a surge in demand for IT services, driven by the country's growing digital economy and increasing adoption of technology by businesses.

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 Tanzania has been developing steadily in recent years, driven by a variety of factors.

Customer preferences: Tanzanian customers are increasingly looking for IT services that can help them improve their business operations and increase their productivity. This includes services such as cloud computing, data analytics, and cybersecurity. Many businesses in Tanzania are also looking to adopt new technologies to stay competitive in the global market.

Trends in the market: One of the key trends in the IT Services market in Tanzania is the growing demand for cloud computing services. This is driven by the need for businesses to store and manage large amounts of data, as well as the increasing popularity of remote work. Another trend is the increasing focus on cybersecurity, as businesses in Tanzania become more aware of the risks posed by cyber threats.

Local special circumstances: One of the unique characteristics of the IT Services market in Tanzania is the high level of competition. There are many local and international providers offering a wide range of services, which has led to a relatively low cost of services compared to other markets in the region. Another special circumstance is the relatively low level of IT infrastructure in Tanzania, which has created opportunities for providers to offer services that can help businesses overcome these challenges.

Underlying macroeconomic factors: The growth of the IT Services market in Tanzania is also driven by a number of macroeconomic factors. One of these is the increasing investment in the country's infrastructure, which has led to improvements in the telecommunications sector. Another factor is the growing number of young, tech-savvy professionals in Tanzania, who are driving innovation and entrepreneurship in the IT sector. Additionally, the Tanzanian government has been supportive of the IT industry, offering tax incentives and other benefits to encourage investment in the sector.

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.