Africa is a growing market in many areas, including outsourced I.T. services. An in-depth report from Technavio shows that the expected compound annual growth rate for the I.T. outsourcing market in Africa is more than 7% for the period leading up to 2020.
The reach of large outsourced technology organisations such as Accenture and IBM is expanding rapidly into the international market, with investors from numerous countries looking for investment opportunities in Africa to explore the emerging and untapped market.
Why Outsource Technology Services?
Even with global economic pressure, the outsourcing market continues to grow. This is because of its dynamic and evolutionary nature which allows it to meet constantly shifting customer demands.
While many organisations do have I.T departments to support businesses processes they don’t always have the skilled resources to handle the increasingly complex IT infrastructure.
With an outsource partner, organisations benefit from the use of specialist systems and insight that offers the latest in technology advancements and can ultimately impact the way they run their daily operations.
Full outsourcing services take this one step further, whereby outsourcers take ownership of, and responsibility for, managing all or very large parts of the customer’s information infrastructure and operations according to a service level agreement (SLA).
Outsourcing technology services into Africa
Outsourced hosting and managed services in particular are seeing strong adoption in the African market. Cheap labour and growing economy of Africa are the major factors that fuel the outsourcing of IT functions to the region. Managed services especially allow organisations to choose the services they require and creates flexibility. With this in mind, African countries are able to tailor specialist services to meet specific company requirements.
According to the report,
Africa continues to remain one of the prominent destinations for outsourcing of I.T. services. Africa’s distinctive business environment encourages organizations to outsource their I.T. function to the I.T. service providers in African countries. Government organizations, Banking and Financial Services, and Insurance organisations are the early adopters of I.T. outsourcing services in Africa.
In the banking and financial services sector, I.T. outsourcing services are implemented to help organisations cut their IT cost and increase cash reserves. The healthcare sector is requiring increasing technological support for the advanced patient care systems and IT services such as data centres, healthcare information systems, and supply chain and logistics are being outsourced.
Looking to the future
As complex I.T. environments continue to grow in the future, companies will look more and more to outsourced solutions so that they can optimally focus on their core businesses while gaining access to best-of-breed technology expertise. Outsourcing allows organisations to really embrace the advancements of technology but with the confidence that comes with utilising an expert partner in the field. There is no doubt that outsourcing technology services will continue to be a major, growing force in the coming years.
If you are looking to outsource your own technology services and I.T. infrastructure, chat to us about how we can help. Impact I.T. can be your expert partner, assisting in choosing the right solutions and managing them so you don’t have to. Contact us to discuss your needs.