- Technological developments, government promotion of ICT and Nigeria's exposure to the global stage have provided additional growth stimulus, according to a new analysis from Frost & Sullivan, which also stated that the country’s IT market earned revenues of $58.0 million in 2007 and estimates this to reach $330.0 million in 2014.
Although the Nigerian IT infrastructure market is in its infancy, key sectors such as the financial, telecommunications, and oil and gas industries have begun outsourcing elements of their IT functions to third parties, said the report.
"The unreliable power supply in Nigeria is promoting the growth of outsourced services such as disaster recovery and dedicated hosting," notes Frost & Sullivan Research Analyst Mpho Moyo, further adding: "This is because companies need to have contingency measures in place to ensure business continuity during power failures."
The reports also notes that some business requirements may demand 24-hour access to networks or e-mail, further saying, frequent power outages can be extremely disruptive. From the disruption the analysis said, IT outsourcing services such as disaster recovery provide backup systems for companies to ensure business continuity.
However, the growth of IT outsourcing services is constrained by the limited number of companies that offer these services. The lack of aggressive marketing by IT outsourcing providers poses a further challenge to market expansion, said the report.
"Existing market participants need to take advantage of the growing awareness of the benefits of outsourcing in key sectors," advises Ms Moyo. "This will ensure that companies have a head start as competition intensifies and the Nigerian IT market develops."
Frost & Sullivan however warns that experience and accreditation will be important, as Nigerian companies are highly brand-conscious, also adding that it is also important for market participants to build strong customer relationships through the provision of consulting services to boost awareness of their IT outsourcing services.
"IT outsourcing service providers need to be able to anticipate customer requirements and design appropriate solutions," comments Ms Moyo. "They need to engage in a close consultative process with their clients to guarantee success."
The analysis of the Nigerian IT Infrastructure Outsourcing Market is part of the IT Services & Applications Growth Partnership Services programme, which also includes research in the following markets: West African Broadband Market, East African Broadband Market and, Kenyan IT Infrastructure Market, according to Frost & Sullivan.
afrol News - It is called "financial inclusion", and it is a key government policy in Rwanda. The goal is that, by 2020, 90 percent of the population is to have and actively use bank accounts. And in only four years, financial inclusion has doubled in Rwanda.
afrol News - The UN's humanitarian agencies now warn about a devastating famine in Sudan and especially in South Sudan, where the situation is said to be "imploding". Relief officials are appealing to donors to urgently fund life-saving activities in the two countries.
afrol News - Fear is spreading all over West Africa after the health ministry in Guinea confirmed the first Ebola outbreak in this part of Africa. According to official numbers, at least 86 are infected and 59 are dead as a result of this very contagious disease.
afrol News - It is already a crime being homosexual in Ethiopia, but parliament is now making sure the anti-gay laws will be applied in practical life. No pardoning of gays will be allowed in future, but activist fear this only is a signal of further repression being prepared.
afrol News / Africa Renewal - Ethiopia's ambitious plan to build a US$ 4.2 billion dam in the Benishangul-Gumuz region, 40 km from its border with Sudan, is expected to provide 6,000 megawatts of electricity, enough for its population plus some excess it can sell to neighbouring countries.
front page
| news
| countries
| archive
| currencies
| news alerts login
| about afrol News
| contact
| advertise
| español