Data services from Africa for German customers
If one believes the Lünendonk Lists 2024, IT service providers in Germany are continuing a growth path despite the economic situation.(1)
Despite the economic stagnation, IT service providers can look back on a successful year in 2023: their revenues increased by an average of 9.7 percent (2022: 13.2 percent). In addition to strong demand related to digital transformation and the development of digital business models, rising fees also contributed to the growth rate. Thanks to the potential of digital technologies and the shortage of IT professionals, the IT services market will remain a growing segment in the coming years.
The following trends can therefore be observed.
- IT service providers increased their domestic revenues by an average of 9.7 percent in 2023.
- Strong demand surrounding cloud transformation, IT modernization, the development of digital business models, and efficiency improvements.
- A shortage of IT experts and pressure to digitize are leading to an increasing allocation of IT budgets to IT service providers.
- Growth is expected to be in the double digits in 2024 and 2025.
According to the digital association Bitkom, the market volume for the IT services market in 2024 was €51.6 billion (2023: €49.3 billion). This figure includes services such as IT consulting, software development and implementation, as well as IT services like managed (cloud) services and IT outsourcing.(2)
The German Society for International Cooperation (GIZ) therefore promotes IT service providers in many African countries so that they can offer services at a level that is also attractive to German customers, as an alternative to increasingly expensive services from India or Eastern Europe.
One example of such an initiative is the Rwanda Global Business Services Growth Initiative (GBS GI). This initiative of the Ministry of ICT and Innovation and the Rwanda Development Board serves as a catalyst for investment, political advocacy, and talent development within the GBS sector in Rwanda. It was through this initiative that the Rwanda BPO & Tech Summit was held in Berlin in the summer of 2024.
collaborations with local companies. Platforms selected 20 young women and, together with the company TechQuest, trained them to become data science experts. This training took place partly online and partly in person. We placed great emphasis on ensuring that the training was aligned with the needs of the business world.
The young women are now nearing the end of their training. We want to allow them to gain practical experience through internships. Ultimately, Kolaborate aims to offer its own data services to German clients. The focus here is on data cleaning, data preparation and optimization, and the marketing sector (e.g., CRM services, HubSpot, etc.).
The text contains footnotes that refer to cited sources, which we will gladly share upon request.
Please get in touch if you are interested.
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