IT outsourcing in Africa: Key market research findings
- Need for cost reduction fuels market growth
- Government segment accounts for a majority of the market’s revenue
- Key vendors – Accenture, CSC, HP, and IBM
Technavio’s market research analysts predict the IT outsourcing market in Africa to grow at a CAGR of around 7% between 2016 and 2020. The growth of the market is fueled by the rising need for cost reduction and improved efficiency. IT outsourcing helps companies achieve their company’s vision and mission by putting their resources and people skills into their core business. It also helps to improve their operational efficiency as firms do not need to invest in resources or worry about managing limited available resources. Several companies in Africa are outsourcing their IT functions and IT-related requirements such as application and infrastructure management to IT outsourcing service provider, to enhance their core business.
The new market research report from Technavio presents a breakdown and analysis of the IT outsourcing segments based on the end-user.
“The market is currently witnessing an increase in the adoption of big data and analytics. This trend has been in motion by the increasing demand for and improved decision-making process. Big Data and analytics solutions require data scientist and experts to process the unstructured data into meaningful insights by using statistics that can help senior management of the organizations to make strategic decisions,” says Amit Sharma, Lead Analyst, ICT, Technavio Research.
During 2015, the government segment accounted for around 37% of the overall market revenue to become the dominant shareholder in the IT outsourcing market in Africa. The ease of doing business in Africa is improving owing to the government’s support and IT investments that will provide a suitable business environment. As a result, the number of IT outsourcing deals will increase in the market. The government’s effort to enhance urbanization and increased demand from various industry verticals are acting as a catalyst to boost the growth of the IT outsourcing market.
The key vendors in the market include Accenture, CSC, HP, and IBM. The level of competition among the vendors are increasing and becoming intensive due to similar kind of services are being offered by many players in the market. The competition is also increasing due to the presence of numerous IT services companies located at offshore locations.
A more detailed analysis is available in the Technavio report, IT Outsourcing Market in Africa 2016-2020.
We can customize reports by other regions and specific segments upon request.
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