TECH SUPPLIER Sep 2019 - Technology Segment - Doc # META45202519

South Africa IT Services 2018 Market Analysis and 2019–2023 Forecast

By: Jonathan TullettResearch Manager

Abstract

This IDC study presents the IT services industry in South Africa in 2018 and forecasts expenditure on IT services through 2023. The study contains market size and distribution by both foundation markets and vertical markets. The study also presents forecasts for 13 foundation market categories

The study answers the following questions:

  • What are IDC's predictions for spending on IT services in South Africa? What are the assumptions behind the forecast numbers, and what impact will the related issues have on the market during the forecast period?
  • What do end users in South Africa say about their concerns and preferences regarding IT services procurement?
  • What are the latest trends in IT services delivery in South Africa with regard to areas such as hybrid cloud, digital transformation, and IT security?

"With slight year-on-year declines in total revenues, 2018 was a difficult year for the IT services market in South Africa. Several inhibiting forces coincided during the year to undo much of the growth achieved in 2017. The subdued macroeconomic climate played a role, as did ongoing investigations and revelations of corruption. At the same time, several large outsourcing contracts were renegotiated, signaling the effects of pricing pressures and changes to supplier organizations." — Senior Research Manager Jonathan Tullett, IT Services, IDC Sub-Saharan Africa.


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