IT Services - Egypt

Egypt

Revenue in the IT Services market is projected to reach US$1.57bn in 2024.
IT Outsourcing dominates the market with a projected market volume of US$0.58bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 12.51%, resulting in a market volume of US$2.83bn by 2029.
The average Spend per Employee in the IT Services market is projected to reach US$47.48 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.

For more information on the data displayed, use the info button right next to the boxes.

Market

Region

Region comparison

Currency

Analyst Opinion

The IT Services market in Egypt has been experiencing significant growth in recent years.

Customer preferences: Egyptian customers are increasingly looking for IT services that offer innovative solutions and high-quality customer service. They place a high value on reliability and security, as well as cost-effectiveness.

Trends in the market: One of the key trends in the IT Services market in Egypt is the increasing adoption of cloud computing solutions. This is driven by the need for greater flexibility and scalability, as well as cost savings. Another trend is the growing demand for cybersecurity services, as businesses seek to protect themselves against cyber threats and data breaches. In addition, there is a growing focus on digital transformation, with businesses seeking to modernize their IT infrastructure and processes.

Local special circumstances: Egypt has a young and rapidly growing population, with a high level of digital literacy. This has created a large and growing market for IT services, particularly in areas such as e-commerce, mobile applications, and social media. In addition, the government has been investing heavily in the development of the country's IT infrastructure, with a particular focus on expanding broadband access and promoting digital innovation.

Underlying macroeconomic factors: Egypt's economy has been growing steadily in recent years, driven by a combination of domestic consumption, investment, and exports. This has created a favorable business environment for IT services providers, with increasing demand from both the public and private sectors. In addition, the government has implemented a number of economic reforms aimed at improving the country's competitiveness and attracting foreign investment. These factors are expected to continue to drive growth in the IT Services market in Egypt in the coming years.

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.