Increasing Adoption Of Cloud Computing To Fuel IT Outsourcing Market In Africa

This report presents a detailed analysis of the IT outsourcing market in Africa, highlighting the present scenario of this market and its growth prospects by the end of 2020. The top market trends impacting the development of this market in Africa and the main outcomes of the Porter’s five forces evaluation have been described in this study. In addition, the prime threats and opportunities encountered by the vendors operating in the market have been presented.

The report starts by presenting an introduction to the IT outsourcing market in Africa. This section encapsulates the chief highlights related to this market and the key drawbacks and benefits of IT outsourcing. The IT outsourcing market in Africa is predicted to expand at a 7.0% CAGR from 2016 to 2020. IT outsourcing is the utilization of external service providers for the effective delivery of IT-enabled application services, infrastructure solutions, and business processes, for enhanced business outcomes.

As per the report, Africa is poised to emerge as one of the top outsourcing locations for IT services globally. This is owing to the increasing penetration of leading international and domestic IT vendors in the market. Moving further, the segmentation of the IT outsourcing market in Africa has been presented. The market is segmented in terms of application and geography. On the basis of application, the report categorizes the market into telecommunications, government, BFSI, healthcare, and others. Amongst these, in 2015, the government sector held a share of 30% in the market. The government sector is inclined towards outsourcing its IT functions so as to reduce expenditures related to IT in government offices.

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By geography, the report segments the Africa IT outsourcing market into Europe, the Middle East, and Africa (EMEA), Asia Pacific, and the Americas. Next, the report elaborates upon key market dynamics such as drivers, challenges, opportunities, and trends impacting the growth of the IT outsourcing market in Africa. IT outsourcing aids enterprises in reducing their overall cost and enhancing their efficiency by taking the benefit of external expertise. In addition, the expanding economy of Africa and the availability of cheap labor will positively impact the development of the IT outsourcing market in Africa.

Furthermore, the increasing adoption of technologies such as data analytics and cloud computing will stimulate the development of the Africa IT outsourcing market. On the other hand, the lack of consistency in service level agreements (SLAs) is a key factor impeding the development of this market in Africa.

In the following part of the study, the vendor landscape section of the market has been presented. As stated in the report, the Africa IT outsourcing market is highly competitive and a number of vendors are presenting similar types of outsourcing services to their customers. The prime vendors dominant in the market are Accenture, HP, CSC, IBM, Infosys, Aegis, Acora, Amdocs, Capgemini, Atos, CGI, Dimension Data, Fujitsu, and Cognizant, among others.

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