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The IT Industry in South Africa

Liz Kneale | South Africa | 25 May 2015

Price

R 1 700.00(ZAR) estimated $ 110.72 (USD)*

The IT Industry

This report focuses on the South African Information Technology industry which designs, manufactures, supplies, implements and supports the technologies that enable the storage, retrieval and transmission of information. The local IT industry is growing at a CAGR of 6% and employs almost 200,000 people. It contributes approximately 7% to the country’s GDP and IT spend for 2015 is projected at R143bn. The sector includes South African companies Dimension Data, Gijima Group Ltd and Business Connexion, which have become global leaders in the IT sector.

Developments in the sector

Just as the industry offerings are dominated by continuous new developments, innovations and technologies, so the sector itself is characterised by mergers, acquisitions, vendor partnerships and licensing agreements in order to increase the portfolio of services offered, strengthen presence in existing markets and enable expansion into new markets. Although there are numerous challenges, including electricity supply constraints, a lack of skills, and the slow implementation of government initiatives such as the ICT policy, the broadband roll-out and digital migration, stakeholders remain optimistic about the prospects for the sector.

Report coverage

The report on the South African Information Technology sector describes the current market, lists corporate actions and other developments within the sector and focuses on factors influencing the success of the industry. The report also profiles 53 South African-based companies, ranging from Microsoft (SA) (Pty) Ltd which offers a back-up service to the American holding company, providing a service that includes the marketing of Microsoft computer products as well as providing technical support and training for end-users, to Dexani cc based in Centurion, which employs seven people involved in IT services including the retail of hardware and software as well as networking design and implementation for the corporate sector.

		PAGE
1.	INTRODUCTION	1
2.	DESCRIPTION OF THE INDUSTRY	1
2.1.	Industry Value Chain	3
2.2.	Geographic Position	3
3.	SIZE OF THE INDUSTRY	3
4.	STATE OF THE INDUSTRY	9
4.1.	Local	9
4.2.	Corporate Actions	16
4.2.1.	Regulations	22
4.2.2.	Enterprise Development and Social Economic Development	24
4.3.	Continental	27
4.4.	International	30
5.	INFLUENCING FACTORS	33
5.1.	Economic Environment	33
5.2.	Electricity Supply Constraints	34
5.3.	Government Initiatives	35
5.4.	“Smart Provinces” and “Smart Cities”	36
5.5.	Strong IT Investment	40
5.6.	Innovation	41
5.7.	Labour	42
5.8.	Cybercrime	46
5.9.	Environmental Concerns	47
5.10.	Cyclicality	48
6.	COMPETITION	49
6.1.	Technology, Research and Development (R&D) and Innovation	51
7.	SWOT ANALYSIS	53
8.	OUTLOOK	54
9.	INDUSTRY ASSOCIATIONS	54
10.	REFERENCES	55
10.1.	Publications	55
10.2.	Websites	56
	APPENDIX 1	58
	The Media and ICT Seta Priority Skills List (February 2015)	58
	ORGANOGRAM	60
	COMPANY PROFILES	68
	ABSA BANK LTD	68
	ACCENTURE (SOUTH AFRICA) (PTY) LTD	74
	ACER AFRICA (PTY) LTD	78
	ACI GLOBAL LTD	80
	ADAPTIT HOLDINGS LTD	82
	ADCORP PROFESSIONAL SERVICES LTD	85
	ALLIED ELECTRONICS CORPORATION LTD	87
	ALLPAY CONSOLIDATED INVESTMENT HOLDINGS (PTY) LTD	91
	ATTACHMATE GROUP SOUTH AFRICA (PTY) LTD	93
	BARONE BUDGE AND DOMINICK (PTY) LTD	95
	BIDVEST OFFICE (PTY) LTD	97
	BLUE LABEL TELECOMS LTD	100
	BUSINESS CONNEXION (PTY) LTD	105
	CASH CONNECT MANAGEMENT SOLUTIONS (PTY) LTD	111
	CASH PAYMASTER SERVICES (PTY) LTD	113
	CCI TECHNOLOGY SOLUTIONS (PTY) LTD	115
	CEB MAINTENANCE AFRICA (PTY) LTD	117
	CHM VUWANI COMPUTER SOLUTIONS (PTY) LTD	119
	CISCO SYSTEMS (SOUTH AFRICA) (PTY) LTD	122
	DATACENTRIX HOLDINGS LTD	124
	DATATEC LTD	128
	DELL COMPUTER (PTY) LTD	133
	DELOITTE & TOUCHE SOUTH AFRICA	135
	DIMENSION DATA (PTY) LTD	139
	DIRECT TRANSACT (PTY) LTD	143
	DOCU-FILE (PTY) LTD	146
	DOCUMENT WAREHOUSE (PTY) LTD (THE)	148
	EASYPAY (PTY) LTD	151
	ECENTRIC PAYMENT SYSTEMS (PTY) LTD	153
	ENTERPRISE ELECTRONIC COMMERCE (SA) (PTY) LTD	155
	EOH HOLDINGS LTD	157
	EOH MTHOMBO (PTY) LTD	162
	ERNST & YOUNG ADVISORY SERVICES LTD	164
	FACE TECHNOLOGIES (PTY) LTD	166
	FARANANI IT SERVICES (PTY) LTD	168
	FLASH MOBILE VENDING (PTY) LTD	170
	FUJITSU SERVICES CORE (PTY) LTD	173
	GIJIMA GROUP LTD	175
	HETZNER (PTY) LTD	180
	HEWLETT-PACKARD SOUTH AFRICA (PTY) LTD	182
	IBM SOUTH AFRICA (PTY) LTD	184
	INFOVAULT (PTY) LTD	186
	INTEGR8 IT (PTY) LTD	188
	INTEL SOUTH AFRICA CORPORATION	190
	IT DYNAMICS (PTY) LTD	192
	ITEC DISTRIBUTION (PTY) LTD	194
	KPMG SERVICES (PTY) LTD	196
	LIGHTSTONE AUTO (PTY) LTD	199
	LIGHTSTONE CONSUMER (PTY) LTD	201
	MARINE DATA SOLUTIONS (PTY) LTD	202
	MCKINSEY INC	204
	METROFILE HOLDINGS LTD	206
	MICROSOFT (SA) (PTY) LTD	209
	MORVEST GROUP LTD	212
	MUSTEK LTD	215
	OLTIO (PTY) LTD	219
	ORACLE CORPORATION (SOUTH AFRICA) (PTY) LTD	221
	PARACON SA (PTY) LTD	223
	PAYCORP CORPORATE SERVICES (PTY) LTD	225
	PAYCORP GROUP (PTY) LTD	227
	PINNACLE HOLDINGS LTD	230
	PRICEWATERHOUSECOOPERS EXORDIA (PTY) LTD	233
	PRISM PAYMENT TECHNOLOGIES (PTY) LTD	235
	RICOH SOUTH AFRICA (PTY) LTD	237
	SAGE ERP AFRICA (PTY) LTD	239
	SAS INSTITUTE (PTY) LTD	241
	SETCOM (PTY) LTD	243
	SGX LOGISTICS (PTY) LTD	245
	SIEMENS (PTY) LTD	247
	SOUTH AFRICAN BANKERS SERVICES COMPANY (PTY) LTD	251
	SPARK ATM SYSTEMS (PTY) LTD	253
	STATE INFORMATION TECHNOLOGY AGENCY SOC LTD	255
	STELLAR CAPITAL PARTNERS LTD	259
	SYMANTEC SA (PTY) LTD	262
	SYSTEMS APPLICATIONS PRODUCTS (SOUTH AFRICA) (PTY) LTD	264
	T-SYSTEMS SOUTH AFRICA (PTY) LTD	267
	TPG AFRICA (PTY) LTD	269
	TRANSACTION CONTROL TECHNOLOGIES (SA) (PTY) LTD	271
	TRUSTLINK (PTY) LTD	273
	TUTUKA SOFTWARE (PTY) LTD	275
	UCS SOLUTIONS (PTY) LTD	277
	UNISON COMMUNICATIONS (PTY) LTD	280
	VERIFONE AFRICA (PTY) LTD	282
	VSOLUTION (PTY) LTD	284
	WIZZIT PAYMENTS (PTY) LTD	286