2013-03-20 12:13:57 - New Computer Technology research report from Business Monitor International is now available from Fast Market Research
BMI View: South Africa's economy stuttered in the latter part of 2012 owing to widespread industrial actions in sectors and the build-up to the ruling party's leadership elections. We are sanguine about real private consumption and government spending in 2013, forecasting growth rates of 3% and 3.8% respectively. However, the investment outlook is less positive, with real growth of just 2% in 2013. We therefore expect government-related projects to continue to drive growth in the IT market and the contribution of consumer expenditure to the overall IT to rise in 2013. That said, we believe key industry verticals with a high dependency on technology, notably financial services and retail, will step up their IT investments as concerns over the global
economy recedes. We forecast South African IT spending to increase to about ZAR138.92bn in 2017, from ZAR88.89bn in 2012.
Headline Expenditure Projections
Computer hardware sales: ZAR38.89bn in 2012 to ZAR43.88bn in 2013, +12.8% in local currency terms. We retain the view that migration to Microsoft Windows 8 will provide a boost in 2013.
Full Report Details at
- www.fastmr.com/prod/552427_south_africa_information_technology_r ..
Software Sales: ZAR16.89bn in 2012 to ZAR18.60bn in 2013, +10.1% in local currency terms. Strong private consumption will drive growth, although this will be buffeted by the prevalence of piracy.
IT Services Sales: ZAR33.11bn in 2012 to ZAR34.39bn in 2013, +3.9% in local currency terms. We expect cloud computing to drive the uptake of outsourcing and managed services.
Risk/Reward Ratings: South Africa scores 46.8 out of 100, compared to the regional average of 51.5, in our Q213 MEA RRR table. It is in ninth position on out table, ahead of only Lebanon and Egypt.
Key Trends And Developments
* In February 2013, systems integrator Business Connexcion finalised its 100% acquisition of ICT management firm Integr8 IT for around ZAR126mn. Integr8 IT is one of the largest privately owned ICT managed services firms in Africa, providing annuity based infrastructure management and managed services to the mid-market corporate sector throughout the region.
* The department of Home Affairs plans to issue new smart ID cards with enhanced security features in 2013. At the time of writing, key details of the project were still being worked out, although the project is expected to be implemented over the four years to 2017.
* 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 lower-cost bandwidth availability.
Report Table of Contents:
BMI Industry View
- Business Environment
- Table: South Africa IT Industry - Historical Data & Forecast
Industry Risk Reward Ratings
- Industry Rewards
- Country Rewards
- Industry Risks
- Country Risks
- Table: Middle East And Africa Risk Reward Ratings - Q213
Industry Trends And Developments
- Table: SITA
- Microsoft Corporation
- Sahara Computers
- MEA IT Regional Overview
- IT Penetration
- Sectors And Verticals
- Demographic Outlook
- Table: South Africa's Population By Age Group, 1990-2020 ('000)
- Table: South Africa's Population By Age Group, 1990-2020 (% of total)
- Table: South Africa's Key Population Ratios, 1990-2020
- Table: South Africa's Rural And Urban Population, 1990-2020
- How We Generate Our Industry Forecasts
- IT Industry
- IT Ratings - Methodology
- Table: IT Business Environment Indicators
- Table: Weighting Of Components
About Business Monitor International
Business Monitor International (BMI) offers a comprehensive range of products and services designed to help senior executives, analysts and researchers assess and better manage operating risks, and exploit business opportunities, across 175 markets. BMI offers three main areas of expertise: Country Risk BMI's country risk and macroeconomic forecast portfolio includes weekly financial market reports, monthly regional Monitors, and in-depth quarterly Business Forecast Reports. Industry Analysis BMI covers a total of 17 industry verticals through a portfolio of services, including in-depth quarterly Country Forecast Reports. View more research from Business Monitor International at www.fastmr.com/catalog/publishers.aspx?pubid=1010
About Fast Market Research
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