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.