An IDC Government Insights report says spending in the sector totalled $1.47 billion in 2010, largely on the back of e-government initiatives.
“In the wake of the global financial crisis, IT spending by government entities was fuelled by the need for operational efficiency, as well as by ongoing cost-cutting measures.”
The research company predicts that another key organisational priority in 2011 will be regulatory compliance, which has already emerged as an incentive to IT investment.
Sophisticated infrastructure
"IT spending in the government sector in SA is expected to show steady positive growth over the 2011-2015 period," says research analyst for IDC Middle East, Africa, and Turkey Jebin George.
"Achieving operational efficiency, better service provisioning, and lower costs through automation will be key priorities for the sector in 2011."
However, the IDC says SA still has a long way to go in terms of creating a sophisticated e-government infrastructure.
It adds that the 2010 United Nations eGovernment Development Index ranks SA 97th out of 190 states, with an index value of 0.4306, behind the world average of 0.4406.
“However, SA's government expenditure stood at 53.1% of GDP in 2010, which was on par with advanced economies, and was even higher than the European Union average of 50.7%.”
The South African economy will continue to expand steadily over the coming years, registering an average of 4% growth per annum between 2011 and 2015, according to the research company.
“Virtualisation, security, and data management technologies are expected to be the key IT investment areas during that period.”
Fifa push
“The South African economy is the most advanced in Africa, showing strong positive growth rates from 2000 to 2009, when the country's gross domestic product (GDP) contracted 1.7%, partly due to a sharp decline in international trade.”
However, the IDC says hosting the 2010 Fifa World Cup provided a significant boost to the entire economy and thrust SA into the global limelight during the recession period.
“The economy is expected to make a more significant recovery in 2011, with GDP growth accelerating to 3.7%, owing to higher domestic and global demand.”
The infrastructure development programmes undertaken by the South African government are expected to drive the growth, as is the emergence of a larger middle class due to the government's black economic empowerment programme, according to the company.
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Quelle/Source: IT Web, 15.04.2011
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