IT Services - Zimbabwe

Zimbabwe

Revenue in the IT Services market is projected to reach US$211.80m in 2024.
IT Outsourcing dominates the market with a projected market volume of US$81.13m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 4.76%, resulting in a market volume of US$267.20m by 2029.
The average Spend per Employee in the IT Services market is projected to reach US$31.60 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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Analyst Opinion

The IT Services market in Zimbabwe has seen steady growth over the past few years, driven by increasing demand for technology solutions across various industries.

Customer preferences: Zimbabwean customers are increasingly looking for technology solutions that can improve their business efficiency, reduce costs, and enhance their overall competitiveness. This has led to a growing demand for IT services such as software development, cloud computing, cybersecurity, and data analytics.

Trends in the market: One of the key trends in the IT Services market in Zimbabwe is the shift towards cloud-based solutions. This is driven by the need for businesses to reduce their IT infrastructure costs and improve their agility. Another trend is the increasing demand for cybersecurity services, as businesses seek to protect their data from cyber threats. Additionally, there is a growing interest in emerging technologies such as artificial intelligence and blockchain, which are seen as potential game-changers for businesses in Zimbabwe.

Local special circumstances: The IT Services market in Zimbabwe is characterized by a relatively small number of players, many of whom are small and medium enterprises. This has led to a highly competitive market, with companies competing on price, quality, and service. Additionally, the market is heavily influenced by government policies, which can create opportunities or barriers for businesses depending on the regulatory environment.

Underlying macroeconomic factors: The IT Services market in Zimbabwe is influenced by a range of macroeconomic factors, including the country's political stability, infrastructure development, and access to funding. Zimbabwe has experienced significant political and economic instability in recent years, which has impacted the business environment and made it more difficult for companies to operate. However, the government has recently taken steps to improve the business climate, including the implementation of new investment laws and the establishment of special economic zones. Additionally, the country's infrastructure is improving, with new fiber optic networks being laid and new data centers being built. Finally, access to funding remains a challenge for many businesses in Zimbabwe, with limited options for financing available.

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.