IT services to top USD5m in SA


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


Gaborone to host inaugural Botswana Seedstars challenge

Seedstars World, the global seed-stage startup competition for emerging markets and fast-growing startups, is coming to Botswana for the first time this week. Read More

Nigeria needs $25b investment in broadband, says Wood

Telecoms executive Adrian Wood speaks to Kokumo Goodie about investment potential in Nigeria. Read More

British Airways, Safaricom launch SME initiative

British Airways and Safaricom have partnered to launch an initiative that will provide international exposure for five business owners in Kenya's Small and Medium Enterprise (SME) sector.  Read More

MTN Botswana to widen its services

MTN Business Botswana has reaffirmed its commitment to use its extensive capabilities in the telecommunications sector to provide relevant, quality and affordable ICT solutions to local businesses. Read More

Yet another date for BTCL IPO

Botswana's Minister of Transport and Communications says the long awaited Botswana Telecommunications Corporation Limited (BTCL) Initial Public Offering (IPO) will be settled before the end of this year. Read More

NCC gives MTN fresh window to pay N1.4tr fine

The Nigerian Communications Commission (NCC) has opened a new window to MTN Nigeria for the payment of N1.4 trillion fine imposed on the telco. Read More

MTN Nigerian fine deadline extended

The deadline for the payment of the $5.2 billion fine imposed on MTN in Nigeria has been extended until negotiations between MTN and the NCC have been concluded. Read More

Vodacom, Tracker SA unveil fleet solution in Nigeria

Vodacom Business Nigeria and Tracker South Africa have unveiled their Fleet Management solution in Nigeria.  Read More

Innovative payment solutions a hot topic in SSA: study

The first shopping and retail social listening study, released by MasterCard, reveals consumer trends in three sub-Saharan African markets. Read More

CastIron to host first B2B ICT conference

CastIron, a Gaborone-based ICT oriented company, will host the first business to business information ICT conference in Botswana soon.  Read More


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


eCommerce in Africa urged to take advantage of mobile eCommerce in Africa urged to take advantage of mobile

The Executive Chairman of Alltel has urged operators of eCommerce in Ghana and Africa as a whole to take advantage of the current trend for Africans to trade online via their mobile handsets. 


Nigeria needs $25b investment in broadband, says WoodNigeria needs $25b investment in broadband, says Wood

Telecoms executive Adrian Wood speaks to Kokumo Goodie about investment potential in Nigeria.