Indian IT firms tap into Africa demand

Countries across Africa are seeing demand for technology rise, and Indian companies are making the most of the opportunities on offer.

Many of Africa’s key economies have huge growth potential, and an expanding base of businesses and consumers with money to spend has spurred a renewed wave of demand for technology.

Appropriately, other emerging economies are taking advantage of this rapid change – as reports from India’sEconomic Times demonstrate, some of India’s major technology firms are investing in operations across the continent.

Fast-growing businesses and underdeveloped tech infrastructure have encouraged the likes of Tata Consultancy services, Infosys and Wipro to take on more staff for their African delivery centres and expand their facilities in Africa. The aim is to enable them to be in the next position to capitalise on fresh demand.

Wipro’s strategy is to lay down roots for long-term development by nurturing young talent from the start. The company already runs an internship scheme – the Employability Enhancement Program – part of an ongoing process to both attract good talent and help to cultivate the technology market in the country. Just last month Wipro announced it was launching a new 100-seat learning centre in Johannesburg to provide facilities for the initiative.

Tech Mahindra also has its sights on the growth potential of African markets. Speaking to the Economic Times, Africa business head at the company Girish Bhat said the strategic importance of its Africa bases was growing.

“While we have 15-plus offices housing 2,500 people, Nigeria and South Africa have become delivery centres, not merely support bases,” he explained.

Although just three per cent of Tech Mahindra’s revenue currently comes from countries in Africa, Mr Bhat also confirmed they are aiming to increase this contribution to double-digit figures in the next few years.

South Africa has been by far the most popular choice for IT companies setting up on the continent, some firms are also breaking into markets like Kenya, Uganda, Nigeria and Ethiopia which are demonstrating particularly strong potential.

Finacle, the corebanking software business of Infosys, won business from Kenya’s Equity Bank just a few months ago.

With huge growth potential awaiting them and a range of promising markets that are becoming more and more sophisticated each year, there is much to recommend African expansion to Indian companies. But as the climate becomes more competitive, there will be far more to do to increase their growing market shares.