IT services to top USD5m in SA

BUSINESS

|
Image: By BiztechAfrica
IT services to top USD5m in SA

The IT services market in South Africa has seen healthy uptake, growing some 8% year on year in 2010 to contribute more than a third of the total IT spending in the country. Market research and advisory company IDC expects the IT services market to exceed USD5 billion in 2012.

"After the freeze in IT budgets that came about as a result of the global economic crisis, 2010 saw a rebound in IT services spending," says Suzanne Nolan, research analyst for IT Services, IDC South Africa. "The growth in IT services spending was driven by a recovering economy, increased business confidence, expanding bandwidth availability, and various infrastructure investments made in the country in 2010."

IDC said IT outsourcing constituted around 40% of the South African IT services market, which represents the largest market share of all IT services foundation markets, followed by systems integration and installation and support services. "This growth was mainly driven by discrete managed services rather than by traditional information system outsourcing contracts," says Nolan. "The healthy growth in outsourcing services signifies a level of sophistication and maturity within the IT services segment."

According to IDC, services such as network and desktop outsourcing and infrastructure hosting saw increased uptake in 2010, fuelled by the incremental supply of datacenter space and increased customer awareness of the managed services model.

IDC forecasts the total South African IT services market to expand at a compound annual growth rate of 8.7% to exceed USD17 billion in 2015.

Looking ahead, IDC expects a continued spending focus among end-user organizations on areas and solutions that help reduce operating expenses while increasing efficiency. As a result of continued price pressures and the need to improve client service, vendors are advised to pursue alternative service delivery models, such as cloud services. Not only will this help end users optimize their IT investments, but it will enable services providers to improve their quality of delivery and create new revenue streams.



Share the News

Get Daily Newsletter

comments powered by Disqus

MORE BUSINESS NEWS

DHL to invest millions of Euros across SSA in 2015

DHL plans to invest millions in upgrading its shipment handling systems and facilities in SSA this year. Read More

Ebenezer Asante to assume CEO role of MTN Ghana

Ebenezer Twum Asante will officially assume the position of Chief Executive Officer for MTN Ghana, effective 1st July, 2015. Read More

Nomanini scales West African footprint with Transaction Solutions partnership

South African-based portable Point of Sale (PoS) service provider Nomanini has signed an exclusive agreement with Transactions Solutions Ghana Limited to substantially scale numbers of its cloud-based PoS terminals in Ghana.  Read More

Online procurement system for East Africa goes live

Kenyan IT start-up M-Tenders Systems has created East Africa’s first live online procurement system, www.m-tenders.com. Read More

Customer experience starts with staff experience

Companies seeking to improve customer experience to boost business may be overlooking a critical component in the mix: staff, says new Interactive Intelligence research. Read More

MasterCard, Ecobank Group to accelerate e-payment in SSA

Ecobank, Africa’s largest bank by geographical reach, will roll out MasterCard payment solutions to millions of its customers in Africa. Read More

Travellers more tech savvy

78% of global travellers are using digital information while planning their trips; 66% resorting to digital sources for travel tips at the destination, says Visa. Read More

Standard Chartered appoints Chief Innovation Officer

Standard Chartered Bank says it has appointed Ms Anju Patwardhan as the Bank’s first Group Chief Innovation Officer, effective 1 July 2015.  Read More

Cameroon: a well-kept investment secret

The investment opportunities in Cameroon are wide open, believes Africa strategy advisor for Moore Stephens, Jeff Blackbeard, who recently met with Cameroonian Prime Minister Philémon Yang. Read More

Morpho targets African growth

Morpho, a leading supplier of biometric identification and security solutions, says it plans to aggressively capture the untapped markets in Africa. Read More

PRESS OFFICES

Sage ERP AfricaSAP AfricaSage Pastel AccountingTrust PayVMWareSamsung ElectronicsMitsumi DistributionPhoenix DistributionMTN BusinessSchneider ElectricMultichoiceMicrosoft 4Afrika

FEATURED STORY

IHS plans to inject fresh $500m to grow capacityIHS plans to inject fresh $500m to grow capacity

Mohammed Darwish, managing director of IHS Towers, says the firm will soon inject another $500million into the business after raising some $2.5billion to finance expansion drives. Darwish spoke with biztecafrica.com in Lagos.

IN DEPTH

As curtain falls on MDGs, what next?As curtain falls on MDGs, what next?

Dr. Bjorn Lomborg, president of the Copenhagen Consensus Centre, speaks to Biztechafrica about setting smart targets.

COMPANY NEWS

MTN Business expands partnership with Samsung to offer enterprise customers increased security

Samsung Electronics South Africa has announced that MTN Business has been appointed as a reseller of Samsung’s KNOX licenses to its customers.