Market Insights Technology IT Services IT Outsourcing

Administration Outsourcing - Africa

Africa

Revenue in the Administration Outsourcing market is projected to reach US$1.31bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 6.32%, resulting in a market volume of US$1.78bn by 2029.
The average Spend per Employee in the Administration Outsourcing market is projected to reach US$2.54 in 2024.
In global comparison, most revenue will be generated in the United States (US$27,290.00m in 2024).

Key regions: China, United States, Germany, India, Japan

Market

Region

Region comparison

Currency

Analyst Opinion

The demand for Administration Outsourcing services in Africa has been steadily increasing over the years, with more and more companies opting to outsource their administrative tasks to third-party service providers.

Customer preferences: One of the primary reasons for the growth of this market is the increasing need for companies to focus on their core competencies. By outsourcing administrative tasks such as payroll processing, data entry, and customer support, companies can concentrate on their primary business activities, leading to increased efficiency and productivity. Additionally, outsourcing allows companies to reduce costs associated with hiring and training staff, as well as investing in technology and infrastructure.

Trends in the market: The trend towards outsourcing administrative tasks is particularly prevalent in countries such as South Africa, Nigeria, and Egypt, where there is a large pool of skilled labor available at a relatively low cost. In South Africa, for example, there has been a significant increase in the number of companies outsourcing their administrative tasks to service providers in India, due to the availability of highly skilled labor at a significantly lower cost than in South Africa.

Local special circumstances: In some African countries, such as Ethiopia and Rwanda, the government has been actively promoting the outsourcing industry by providing tax incentives and investing in infrastructure to support the growth of the sector. This has led to an increase in the number of outsourcing service providers in these countries, as well as an increase in the number of companies outsourcing their administrative tasks to local service providers.

Underlying macroeconomic factors: The growth of the Administration Outsourcing market in Africa can also be attributed to the increasing adoption of technology and the rise of the digital economy. With the increasing availability of high-speed internet and the proliferation of mobile devices, companies are increasingly able to outsource their administrative tasks to service providers located anywhere in the world. This has led to increased competition in the market, as service providers from countries such as India and the Philippines compete with local service providers for business.In conclusion, the Administration Outsourcing market in Africa is growing due to the increasing need for companies to focus on their core competencies, the availability of skilled labor at a relatively low cost, government support, and the rise of the digital economy. As the demand for outsourcing services continues to grow, it is likely that we will see an increase in the number of outsourcing service providers in Africa, as well as an increase in the range of services offered.

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.