This is according to research firm IDC, which released its latest SA Vertical Markets figures yesterday. The firm reveals overall IT spending in SA increased 7.1% year-on-year in 2011, to total $12.91 billion (about R112 billion).
IDC says South African consumers’ PC and smartphone spend in 2011 was particularly high, with the home sector recording the largest share of total IT expenditure in the country, at 20%.
Jebin George, senior research analyst at IDC Middle East, Africa and Turkey, says the growing availability of wired and wireless access – together with decreasing communications costs – is driving sales of notebooks, netbooks, tablets, and smart handheld devices among consumers.
At the same time, says George, e-government policies are propelling IT spending by various government departments as they seek to automate their processes.
IDC says joining the home and public sectors as SA’s leading verticals, are the combined transport, communications, and utilities vertical, and the combined finance industry – with these four verticals together accounting for 72.6% of total IT spending in the country in 2011.
“Much of the spending in the communications vertical pertained to infrastructure upgrades related to undersea cables and broadband networks, while increased back-office automation to counter competition and support new channels was responsible for driving spending in the finance vertical.”
Key investment
According to IDC, the key themes of IT investment are operational efficiency, cost optimisation, innovation, and customer centricity.
Consumers, government, and large corporations – particularly in the communications, finance, and manufacturing sectors – remain the country's biggest investors in IT, according to IDC.
However, the firm says opportunities for significant growth exist in the SME segment, with such businesses dominating SA’s business services vertical – especially in the IT, tourism, and real estate sectors. “The government's plan to develop the SME segment as part of its Accelerated and Shared Growth Initiative is expected to give a further impetus to spending in this vertical.”
SA is also becoming a more attractive market for IT vendors, according to IDC. “Increasing IT spending by government entities, businesses, and consumers is being boosted by a growing population, increasing middle-class wealth, and continuing infrastructure expansion.”
“SA is at the forefront of the growth currently being seen in the African continent's middle-class population, especially with its black economic empowerment programme,” says George. "In line with this, we expect to see a surge in demand for products and services across verticals, as a large percentage of SA’s low-income population becomes wealthier, which will bring significant advantages to the economy and result in increased IT investment.”
SA’s overall IT spend, says IDC, will rise steadily at a compound annual growth rate (CAGR) of 6.2% over the coming years, to reach $17.42 billion (about R151 billion) in 2016.
“Government will constitute the fastest-growing vertical during this period, with IT investment expanding at a CAGR of 11.6% through 2016. Government, transport, communications, and utilities will remain the biggest-spending verticals, while from a technology perspective, investment growth will be strongest in software and IT services.”
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Quelle/Source: ITWeb, 30.10.2012
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