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IT Outsourcing in Africa – Facts and Figures

IT Outsourcing in Africa – Facts and Figures

When we think about Africa, some significant businesses come in our minds, for example, Precious gemstones, Timber, Mineral Oils, and world-famous COCOA. We might not think for the other business niche like IT industry or Software development. As the software industry is an economic development tool, and Africa has chosen the same economic transition for its economy. IT Outsourcing is a rising field in almost all countries across the African continent.

Africa is an emerging frontier in IT Outsourcing as it has a youth population that is going to be doubled by 2040. Africa is going to be the prime choice for leading western firms as compared to China and India. So, count the days sooner, Africa will be a desirable place for IT outsourcing. Africa has become the largest IT outsourcing continent with a single entity.

Only South Africa is an old place for Software development and IT outsourcing, rest other countries are in the early stage of the IT outsourcing Development Cycle. Let’s talk about the top 5 IT outsourcing countries in Africa. We can divide Africa as per the below-given list:

a. North Africa

b. South Africa

c. East Africa

d. West Africa

Top 5 IT outsourcing countries in North Africa

Based on the facts and figures, the top 5 IT outsourcing countries are Kenya, Morocco, Egypt, Nigeria, and South Africa. In the present scenario, from Kenya to South Africa, companies are focusing on big data and mobility. Some research analyst predicts that the growth of €œIT outsourcing in Africa will grow up to CAGR of 7% in the coming years. As these Top 5 countries are offering cheap labour and cost-effective, functional factors, which means much more profit. This is also a major reason for IT outsourcing.

Reasons for IT outsourcing In Africa-

Africa is adopting the technologies very fast, and all the technologies such as cloud computing, Analytics, digital marketing, and ICT are growing at a satisfactory rate. African government has started investing funds, especially for the growth of IT industries. The growth rate of all the SME and small businesses is significantly improving day by day.

Though the IT outsourcing market in Africa is highly competitive, still, the charm of investment stays high. There are many top vendors working in the field of IT outsourcing by providing services like; Data Analytics and Software development. Some vendors are as follows-

 Capgemini

 Accenture

 IBM

 Infosys

 HCL

 TCS

Main outsourcing segments in each country-

Each country of Africa is emerging with different sets of technology outsourcing. Outsourcing can be segmented in the following categories-

  • In East Africa, outsourcing fields are Java development, SQL database, and mobile solutions.
  • West African Countries are known for Ruby, C++, and other software development languages.
  • North African companies are well versed in technologies like; Linux, PostgreSQL, and Python.
  • Last but not least, South Africa is a leading player in all kinds of technologies and in this country, People are experts in mobile app development, PHP, and SQL.

Facts about North African IT Outsourcing Market-

In North Africa, things got changed in early 2000 for IT businesses.

Earlier, the competition was less, but currently, it’s on the peak. Nowadays, North Africa has become the chief outsourcing place for all the outsourcers. Because of cost-effective employees, time zone compatibility with the USA, and Europe, this place has defeated the majority of African parts.

Egypt-

€œEgypt€ is a booming country for software development, and many of the American companies are willing to outsource their processes here. Egypt has become the first choice for many big shot names like; Vodafone, Orange, and Intel. These big companies are managing their global service deliveries from here. This country has a greatly educated population as compared to other African countries, which helps in turning many outsource towards it.

Morocco-

This nation is among the best destination for IT outsourcing in Africa. Due to similar language and time zone compatibility, Morocco has become the best choice for many French organizations. This country is a strategic location of Outsourcing for many European countries. It has also received huge investments form the local government.

Facts about South African IT Outsourcing Market-

Although this part of the African economy is still trying to grow. South Africa is a leading and dominant player in IT and the Software Industry. South African market is full of talented and educated resources, and this country is growing with a good track record.

Johannesburg-

This country is listed among the top 30 IT outsourcing destination in the world and is accommodating many European and American companies. Again, because of time zone compatibility, this country is on the top of the choices for many American and European Firms.

East African Countries for IT Outsourcing-

Though, as compared to North and South Africa, East African countries are not on the top of the list for IT outsourcing, these countries are also emerging gradually. Countries like Kenya have become the next-gen high-tech hope of IT outsourcing.

Kenya-

The capital of Kenya, Nairobi, is known as Silicon Savannah in the field of development as this place supports emerging businesses. In Nairobi, finding the right talent is not difficult for recruiters. This place stands for its supportive infrastructure. This place is creating a place in the global market because of consistent growth in political and financial fields.

West African Countries for IT outsourcing-

Currently, West Africa has become a substantial player in the African Economy. African government has started realizing its potential for future growth and putting efforts to get development and IT companies in this part of the African continent.

Nigeria-

Though West Africa is known for many good places, Nigeria is the most notable country. Lagos the most potential city of Nigeria as it has become the best outsourcing hub in Africa. With many new policies and technological advancements, Nigeria has become the best potential outsourcing nation. People here in Nigeria are friendly and social, which encourages many companies to come and work there. In this country, English is the native language, which gives relief to many American and European companies.

Conclusion-

Africa is surely a growing business planet, and it has a lot of potentials to grow big in the next coming years. With a huge workforce and cheap infrastructure, this continent is becoming popular among all western countries. A fast acceleration makes a point for developing long-lasting relationships between outsourcers and native professionals.

An Ecosystem like ACE (Accelerated Certified Expert) gives many African companies a reliability certificate, and then they can succeed in their tie-ups with American organizations. The global market is now seriously moving for IT outsourcing In Africa as this continent is rich in resources and nourishes all the industries with fast growth.

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