News Column

INDIAN IT COMPANIES TAP AFRICA'S NEW-FANGLED FAD FOR TECHNOLOGY

May 9, 2014



The African continent is home to fast-growing enterprises and under-developed infrastructure. India's top software services companies are investing big in Africa as they are lured by the growth potential of African economies and their burgeoning interest in technology. Companies like Tata Consultancy Services (TCS), Infosys and Wipro are rapidly expanding their employee base and delivery centres in a market that was earlier viewed as a low-cost, near-shore delivery location to serve large outsourcing customers in Europe and West Asia. Information technology (IT) services growth in the African continent is being strongly driven by government spends in IT infrastructure and services. Wipro, which is present in eight of the 54 African countries, has 1,100 employees in Africa. It will hire 1,000 people at its three centres in South Africa. Tech Mahindra has over 15 offices housing 2,500 people in Africa. Nigeria and South Africa have become delivery centres and not merely support bases for the company. Infosys has forayed into smaller markets like Ethiopia and Malawi. In the case of HCL Technologies, Africa accounts of 12.8 percent of the overall revenues. Indian IT companies have been winning businesses from enterprises in Africa that focus on mobile technologies, e-governance, skill development and social media. Outsourcing advisory Everest expects revenue contribution from Africa to go up from 5-10 percent now to 10-12 percent over the next three years.


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Source: Indian Business Insight