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IT boom expected in Kenya by 2009

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raila_odinga.jpgCompanies and individuals in Kenya are expected to double their spending on IT products and services in 2009 in order to benefit from better cost management, increased efficiency, enhanced business operations and improved revenues.

According to Business Daily a business process outsourcing (BPO) boom expected in late 2009 is already drawing local investors, telecommunication operators and other service providers to prepare for increased demand for hardware and software solutions in the local market, according to a new report by research firm IDC.


“The government has thrown its weight behind this sector and great economic benefits are expected as Kenya stakes a claim in this global multi billion dollar business,” said Francis Hook, Regional Manger, IDC.

According to figures in the firm’s Kenya IT Market Report 2007, the country is still in the infrastructure building stage and thus hardware will take up the biggest share of IT spending in coming years.

Companies and individuals who spend on ICT products and services are likely to spend 73.1 per cent of their budgets on infrastructure and hardware, while IT Services and software spend will take up 15.7 per cent and 11.2 per cent respectively.

“The arrival of submarine fibre is expected to stimulate the market, especially in the home, small and medium business (SMB) segments, where connectivity costs have hampered overall adoption of technology,” said Mr Hook.

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