Market outlook of the IT outsourcing market in Africa
Technavio’s market research analyst predicts the IT outsourcing market in Africa to grow at a CAGR of around 7% during the forecast period. Cost reduction and the need for enhanced efficiency are the primary growth drivers for this market. Cheap labor and growing economy of Africa are the major factors that fuel the outsourcing of IT functions to the region.
The increase in technology adoption such as cloud computing, and analytics, and modernization of ICT infrastructure is fostering the growth of IT services market in the African nation. Government investment in IT especially among SMEs to improve operational and business efficiencies has also been aiding the IT services sector in growing at a significant rate.
Competitive landscape and key vendors
The IT outsourcing market in Africa is highly competitive, and several vendors are offering similar kind of outsourcing services to their clients. They also encourage companies to outsource their IT-related function that do not form their core business process. To differentiate their offerings, they are moving up the value chain by providing services such as data analytics.
The top four vendors in the market are -
Other prominent vendors in the market include Capgemini, Fujitsu, Infosys, Cognizant, HCL, TCS, and Xerox.
Segmentation by end-users and analysis of the IT outsourcing market in Africa
The government sector constituted 30% of the market share during 2015 and is opting to outsource IT functions to reduce expenditures of IT department in government offices. Investors from numerous countries are looking for investment opportunities in Africa to explore the emerging and untapped market. The government's effort to enhance urbanization and increasing demand from various industry verticals is acting as a catalyst for the IT outsourcing market.
Key questions answered in the report include
What will the market size and the growth rate be in 2020?
What are the key factors driving the IT outsourcing market in Africa?
What are the key market trends impacting the growth of the IT outsourcing market in Africa?
What are the challenges to market growth?
Who are the key vendors in this market space?
What are the market opportunities and threats faced by the vendors in the IT outsourcing market in Africa?
What are the key outcomes of the five forces analysis of the IT outsourcing market in Africa?
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