South Africa Information Technology Report Q3 2016

Date: June 1, 2016
Pages: 72
US$ 1,295.00
Report type: Strategic Report
Delivery: E-mail Delivery (PDF)

Download PDF Leaflet

Includes 3 FREE quarterly updates

BMI View: We continue to hold a positive outlook for the South African IT market in 2016 and beyond, over our forecast period to 2020. Nevertheless, the primary concern is the heavy depreciation of the South African rand against the US dollar. Despite the rally throughout the first months of 2015, the fundamental economic issues weighing on the rand - infrastructure bottlenecks and strike action - remain intact, and we therefore expect diminished demand for hardware to continue in 2016, before stabilising in 2017. The strongest driver of growth in the IT market will be government spending via service expansion and modernisation efforts. There is also growing interest in IT solutions by SMEs looking to explore new sales and marketing channels, as well as to improve operations efficiencies, offering new opportunities. These factors will see the software and services segments outperform over the 2016-2020 forecast period.

Latest Updates And Industry Developments
  • Computer Hardware Sales: ZAR28.8bn in 2016 to ZAR35.7bn in 2020, a CAGR of 5.6% in local currency terms. Rand depreciation represents downside risk by squeezing household purchasing power, resulting in deferred purchases and substitution for cheaper models in South Africa's import dependent market.
  • Software Sales: ZAR18.0bn in 2016 to ZAR26.0bn in 2020, a CAGR of 9.2% in local currency terms. We believe the uptake of cloud-based software, which is less susceptible to piracy and through more flexible pricing will deepen the market to SMEs, will drive growth in software sales over the medium term.
  • IT Services Sales: ZAR31.2bn in 2016 to ZAR44.4bn in 2020, a CAGR of 9.4% in local currency terms. IT services will be the outperforming IT market segment, with development of the business process outsourcing market and public sector modernisation spending key drivers.
BMI Industry View
Industry Forecast
Recent Developments
Structural Trends
  Table: Enterprise Trends - GVA By Vertical (South Africa 2015-2020)
  Table: IT Industry - Historical Data And Forecasts (South Africa 2013-2020)
Industry Risk Reward Index
  Table: Middle East & Africa IT Risk/Reward Index, Q3 2016
Market Overview
Cloud Computing
  Table: Cloud Vendor Developments
IT Services
Industry Trends And Developments
  Table: Africa IT Hardware Trade, 2009-2014
  Table: South Africa IT Hardware Trade, 2010-2015
Regulatory Development
  Table: SITA
  Table: National Broadband Policy Targets
Competitive Landscape
  Table: Major Electronics Retailers
  Table: E-commerce And Online Retailers
IT Vendors
International Companies
  Table: Hewlett-Packard
Local Companies
  Table: Datatec
  Table: Dimension Data
  Table: EOH
  Table: T-Systems South Africa
Regional Overview
Demographic Forecast
Demographic Outlook
  Table: Population Headline Indicators (South Africa 1990-2025)
  Table: Key Population Ratios (South Africa 1990-2025)
  Table: Urban/Rural Population & Life Expectancy (South Africa 1990-2025)
  Table: Population By Age Group (South Africa 1990-2025)
  Table: Population By Age Group % (South Africa 1990-2025)
Industry Forecast Methodology
Risk/Reward Index Methodology
  Table: IT Risk/Reward Index Indicators
  Table: Weighting Of Components
Skip to top

South Africa Information Technology Report Q4 2015 US$ 1,295.00 Aug, 2015 · 83 pages
South Africa Information Technology Report Q1 2016 US$ 1,295.00 Nov, 2015 · 73 pages
South Africa Information Technology Report Q2 2016 US$ 1,295.00 Mar, 2016 · 74 pages
South Korea Information Technology Report Q2 2016 US$ 1,295.00 Apr, 2016 · 73 pages
South Korea Information Technology Report Q4 2016 US$ 1,295.00 Sep, 2016 · 76 pages

Ask Your Question

South Africa Information Technology Report Q3 2016
Company name*:
Contact person*:
Request invoice
Your enquiry:
Please click on a Check Box below to confirm you are not a robot: