South Africa Information Technology Report Q1 2013
- ID: 2364023
- December 2012
- Region: Africa, South Africa
- 70 pages
- Business Monitor International
BMI View: South African IT spending to increase to about US$18.1bn in 2017, at a US dollar 2012-
2016 CAGR of 8%. In 2012, vendors reported a slowdown in public sector tender flow, due in part due a Treasury audit. Business confidence remains depressed compared with pre-global financial crisis levels,
but major infrastructure and transport projects will provide encouragement for growth during BMI's five-year forecast period. Most opportunities are likely to be in sectors such as wholesale and retail trade and financial and personal services, which will grow faster, while other verticals like mining and manufacturing suffer a slowdown. However, South African businesses are expected to maintain a cautious attitude to IT investments, due to continued global economic uncertainty.
Headline Expenditure Projections:
Computer hardware sales: US$5.4bn in 2012 to US$6.1bn in 2013, +12% in US dollar terms. Forecast in US dollar terms downwardly revised due to analyst adjustment, but migrations to Windows 8 should provide a boost in 2013.
Software sales: US$2.4bn in 2012 to US$2.6bn in 2013, +9% in US dollar terms. Forecast in US dollar terms downwardly revised due to analyst modification, but vendors have reported growing enterprise and local government interest in Software-as-a-Service (SaaS).
IT services sales: US$4.6bn in 2012 to US$4.7bn in 2013, +14% in US dollar terms. Forecast in US dollar terms downwardly revised due to analyst modification, but cloud computing will drive utilisation of outsourcing and managed services.
South Africa's score was 47.1 out of 100.0. South Africa ranked eighth in our latest MEA RRR table.
Key Trends & Developments:
- The South African Department of Education has announced a target of rolling out laptops to all school children in the country by 2014. The government is looking at various ways to achieve this, including the use of portable mobile computer labs for schools where there is no infrastructure. Following a strong recovery in PC shipments in 2011, the market should remain on an upwards trajectory.
- Business intelligence is one growth area as South African organisations look to improve information visibility and utilisation. Vendors have reported that spending is increasing in organisations where business intelligence platforms are already entrenched. Strong sectors for business intelligence solutions include retail.
- Major infrastructure and transport projects should continue to boost IT services spending growth during the forecast period. Spending still depends heavily on government programmes and the government will remain the largest spending IT services vertical, followed by financial services and telecoms. Cloud computing is becoming viable in South Africa due to improved and lowercost bandwidth availability. SHOW LESS READ MORE >
Executive Summary 5
SWOT Analysis 7
South Africa IT Sector SWOT 7
South Africa Telecommunications Sector SWOT 8
South Africa Political SWOT 9
South Africa Economic SWOT 9
South Africa Business Environment SWOT 10
IT Risk/Reward Ratings 11
Table: Middle East And Africa IT Risk Reward Ratings, Q113 13
MEA IT Market Overview 14
IT Penetration 14
Market Overview 21
Government Authority 21
Industry Developments 31
IT And Economic Development 33
Industry Forecast 37
Table: South Africa IT Industry - Historical Data And Forecasts, 2010-2017 40
Industry Forecast Internet 41
Table: Telecoms Sector - Internet - Historical Data And Forecasts, 2010-2017 41
Competitive Landscape 43
IT Services 46
Internet Competitive Landscape 49
Macroeconomic Forecast 51
Table: South Africa - Economic Activity, 2011-2016 54
Company Profiles 55
Sahara Computers 60
Country Snapshot 62
Table: South Africa's Population By Age Group, 1990-2020 ('000) 63
Table: South Africa's Population By Age Group, 1990-2020 (% of total) 64
Table: South Africa's Key Population Ratios, 1990-2020 65
Table: South Africa's Rural And Urban Population, 1990-2020 65
BMI Methodology 66
How We Generate Our Industry Forecasts 66
IT Industry 66
IT Ratings – Methodology 67
Table: IT Business Environment Indicators 68
Table: Weighting Of Components 69