IT Services - Zambia

Zambia

Revenue in the IT Services market is projected to reach US$288.10m in 2024.
Business Process Outsourcing dominates the market with a projected market volume of US$101.40m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 8.27%, resulting in a market volume of US$428.60m by 2029.
The average Spend per Employee in the IT Services market is projected to reach US$39.46 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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Analyst Opinion

IT Services market in Zambia has seen a steady growth in recent years. The market is driven by several factors such as customer preferences, local special circumstances, and underlying macroeconomic factors.

Customer preferences: Zambian customers are increasingly adopting digital technology, and this has led to a rise in demand for IT services. Customers are looking for cost-effective solutions that can help them streamline their operations and improve their efficiency. They prefer IT services that are reliable, secure, and offer good value for money.

Trends in the market: The IT services market in Zambia is witnessing a shift towards cloud-based services. Cloud-based services offer several benefits such as scalability, flexibility, and cost-effectiveness. This trend is driven by the increasing adoption of digital technology and the need for businesses to reduce their IT infrastructure costs. Another trend in the market is the rise of mobile technology. Mobile devices are becoming increasingly popular in Zambia, and this has led to a rise in demand for mobile applications and services.

Local special circumstances: The IT services market in Zambia is unique due to several local special circumstances. One of the key factors is the lack of IT infrastructure in the country. This has led to a rise in demand for cloud-based services, as businesses look for ways to reduce their IT infrastructure costs. Another factor is the high cost of internet connectivity in Zambia. This has led to a rise in demand for IT services that can work offline or with low bandwidth.

Underlying macroeconomic factors: The IT services market in Zambia is influenced by several underlying macroeconomic factors. One of the key factors is the country's economic growth. Zambia has one of the fastest-growing economies in Africa, and this has led to a rise in demand for IT services. Another factor is the government's commitment to promoting digital technology. The government has launched several initiatives to promote the adoption of digital technology, and this has created a favorable environment for the growth of the IT services market. Finally, the availability of skilled IT professionals in Zambia has also contributed to the growth of the market.

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.