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it industry south africa

The IT Industry in South Africa 2024

Stephen Timm | South Africa | 16 January 2024

The IT Industry in South Africa 2022

Liz Kneale | South Africa | 30 April 2022

The IT Industry in South Africa 2020

Liz Kneale | South Africa | 11 September 2020

The IT Industry in South Africa 2019

Liz Kneale | South Africa | 17 April 2019

The IT Industry in South Africa 2017

Liz Kneale | South Africa | 11 December 2017

The IT Industry in South Africa 2016

Liz Kneale | South Africa | 29 September 2016

The IT Industry in South Africa 2015

Liz Kneale | South Africa | 25 May 2015

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Report Coverage

This report focuses on the information technology (IT) industry, including hardware manufacturing, assembly, and supply; software development and supply; and retail sales of hardware and software. It includes information on the size, state and economic contribution of the industry and trends including digital transformation, cloud computing, fintech, ecommerce and cybersecurity. It includes information on corporate actions, trade, government’s procurement and IT spend, corruption and competition issues. There are profiles of 102 companies including notable players such as Adapt It, Altron, 4Sight Holdings, Datatec, Mustek, and EOH, major international players such as Microsoft, IBM and Dell and retailers such as Takealot. Local cloud service providers include Synthesis, BlueSky (which provides cloud consultancy services for Salesforce), AWS, Tableau, and Alteryx products, and Obsidian.

Introduction

• While the burst of growth in the IT sector during the pandemic has dissipated, demand for software and hardware products is expected to remain strong.
• Demand will be driven by digital transformation at companies and the adoption of technologies such as artificial intelligence and the internet of things, which require stronger computing power.
• Loadshedding has had positive and negative effects on the IT industry as it has led to a surge in demand for inverters, solar panels, and batteries, but affected the rollout of data centres, which are energy intensive.
• Other challenges include the global shortage of IT skills, delays in state ICT initiatives and IT projects and a slowdown of venture capital funding to startups, all of which have put a brake on IT spending.

Trends

• Demand is growing for the use of big data, robotics, cloud computing, IoT and AI solutions.
• Emerging technologies drive demand for innovative solutions and digital transformation services.
• Financial regulation and security concerns drive demand for compliant and secure financial transactions.
• Hybrid remote and office work.
• Increasing interest in green technology or more efficient IT hardware.
• Increasing risk of cybercrime drives demand for secure IT solutions.
• IT workloads are shifting to the cloud, and large IT companies are managing clients’ shift to the cloud.
• There is growing demand for fintech solutions driven by the growth in ecommerce and the adoption of mobile technology.

Opportunities

• Cloud computing value-added services.
• Demand for cybersecurity products.
• Development of smart cities and provinces and a large number of e-services such as e-learning, e-payments, e-governance, and e-commerce.
• Ecommerce
• Fintech products and solutions.
• Green technology or more efficient IT hardware.
• Tech products and solutions developed by innovative techs startups.
• The digital transformation trend is fuelling growth for IT products and services.

Challenges

• Delayed implementation of vital projects such as digital migration and SA Connect and development of appropriate policies and regulations.
• Extreme shortage of professional skills to offer existing services and keep pace with new developments, resulting in a reliance on external and imported skills.
• Fallout from IT company involvement in procurement irregularities.
• Government’s fiscal challenges have led to delays in some IT projects.
• Hardware retailers have been negatively affected by ports delays.
• High cost of importing ICT hardware, software, and services due to exchange rate.
• Loadshedding.
• Network and ICT readiness are not as high as they should be.
• Reliance on imported products.
• Security threats from increasing cybercrime and a lack of associated skills.
• The slowing economy, which reduces IT spending by companies and the government.

Outlook

• Demand for software and hardware products is expected to remain strong.
• This includes demand for digital transformation solutions as businesses use technology and innovation to re-invent and improve their operations.
• Growth will also come from cybersecurity services, local service providers offering value-added cloud computing services, and the development of fintech services.

Read More..
The IT Industry in South Africa 2024

Full Report

R 20 000.00(ZAR) estimated $1048.98 (USD)*

Industry Landscape

R 14 000.00(ZAR) estimated $ 734.29 (USD)*

Industry Organogram

R 450.00(ZAR) estimated $ 23.60 (USD)*

Historical Reports

The IT Industry in South Africa 2022-04-30

R 9 500.00(ZAR) estimated $498.27 (USD)*

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The IT Industry in South Africa 2020-09-11

R 1 900.00(ZAR) estimated $99.65 (USD)*

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The IT Industry in South Africa 2019-04-17

R 1 900.00(ZAR) estimated $99.65 (USD)*

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The IT Industry in South Africa 2017-12-11

R 1 900.00(ZAR) estimated $99.65 (USD)*

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The IT Industry in South Africa 2016-09-29

R 1 900.00(ZAR) estimated $99.65 (USD)*

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The IT Industry in South Africa 2015-05-25

R 1 900.00(ZAR) estimated $99.65 (USD)*

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Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1 Industry Value Chain 2
2.2 Geographic Position 4
2.3 Size of the Industry 5
3 LOCAL 6
3.1 State of the Industry 6
3.2 Key Trends 16
3.3 Key Issues 16
3.4 Notable Players 17
3.5 Trade 19
3.6 Corporate Actions 22
3.7 Regulations 27
3.8 Enterprise Development and Social Development 29
4 AFRICA 31
5 INTERNATIONAL 35
6 INFLUENCING FACTORS 38
6.1 Economic Environment 38
6.2 Labour 39
6.3 Environmental Issues 43
6.4 Technology, R&D, Innovation 44
6.5 Government Procurement 47
6.6 Cybersecurity 49
6.7 Loadshedding 51
6.8 Corruption 52
6.9 Rising Inputs 53
7 COMPETITIVE ENVIRONMENT 53
7.1 Competition 53
7.2 Ownership Structure of the Industry 54
7.3 Barriers to Entry 56
8 INDUSTRY SUMMARY 56
9 OUTLOOK 58
10 INDUSTRY ASSOCIATIONS 58
11 . REFERENCES 59
11.1 Publications 59
11.2 Websites 60
APPENDIX 1 - Computer and Related Activities 62
APPENDIX 2 - Wholesale and Retail of Laptops, Desktops and Peripherals 71
COMPANY PROFILES - Computer and Related Activities 75
4Sight Holdings Ltd 75
Accenture (South Africa) (Pty) Ltd 78
Accsys (Pty) Ltd 81
ACI Global Ltd 83
Active Track (Pty) Ltd 85
AdaptIT Holdings (Pty) Ltd 87
Adcorp Workforce Solutions (Pty) Ltd 91
Africa Online Retail (Pty) Ltd 96
Afrihost SP (Pty) Ltd 98
Altron Ltd 100
Alviva Holdings (Pty) Ltd 104
AOLC (Pty) Ltd 108
AYO Technology Solutions Ltd 110
B D Silks CC 113
Barone Budge and Dominick (Pty) Ltd 115
Bidvest Office (Pty) Ltd 117
Blue Label Telecoms Ltd 120
Business Connexion (Pty) Ltd 125
Capital Appreciation Ltd 128
Cash Connect Management Solutions (Pty) Ltd 133
CCI Technology Solutions (Pty) Ltd 135
CHM Vuwani Computer Solutions (Pty) Ltd 137
Cocre8 IT Services (Pty) Ltd 139
Daddy's Deals (Pty) Ltd 141
Datacentrix (Pty) Ltd 143
Datatec Ltd 145
Dimension Data (Pty) Ltd 149
Direct Transact (Pty) Ltd 151
Document Warehouse (Pty) Ltd (The) 153
EasyPay (Pty) Ltd 156
Ecentric Payment Systems (Pty) Ltd 158
EOH Holdings Ltd 160
ERS Biometrics (Pty) Ltd 165
Faranani IT Services (Pty) Ltd 167
Flash Mobile Vending (Pty) Ltd 169
Gijima Group Ltd 171
Hewlett-Packard South Africa (Pty) Ltd 175
IBM South Africa (Pty) Ltd 177
Intel South Africa Corporation 179
International Time and Access Technologies CC 181
Iron Mountain South Africa (Pty) Ltd 182
Iron Mountain South Africa Information Management (Pty) Ltd 184
Iron Mountain South Africa Records Management (Pty) Ltd 186
IT-Dynamics (Pty) Ltd 188
ITEC SA (Pty) Ltd 190
Lesaka Technologies (Pty) Ltd 192
Lightstone Consumer (Pty) Ltd 194
Mastercard Southern Africa (Pty) Ltd 196
MediKredit Integrated Healthcare Solutions (Pty) Ltd 197
Metrofile Holdings Ltd 199
Micro Focus Software South Africa (Pty) Ltd 204
Microsoft (S A) (Pty) Ltd 206
Morvest Group (Pty) Ltd 211
Mustek Ltd 214
Naspers Ltd 219
Nomad Information Systems (Pty) Ltd 223
Onedayonly Offers (Pty) Ltd 224
Oracle Corporation (South Africa) (Pty) Ltd 225
Pay-Day Software Systems (Pty) Ltd 227
Paycorp Group (Pty) Ltd 229
PBSA (Pty) Ltd 231
PBT Group Ltd 233
Prism Payment Technologies (Pty) Ltd 236
QCK Lezmin 4648 CC 238
Ricoh South Africa (Pty) Ltd 239
Sage South Africa (Pty) Ltd 241
SAS Institute (Pty) Ltd 243
SBE International SA (Pty) Ltd 245
Sentri Systems CC 246
Setcom (Pty) Ltd 247
Siemens (Pty) Ltd 249
Silkwood Trading 18 (Pty) Ltd 253
Sirius Sales (Pty) Ltd 254
Solar and Security Nerd (Pty) Ltd 256
South African Bankers Services Company (Pty) Ltd 258
Spark ATM Systems (Pty) Ltd 261
State Information Technology Agency SOC Ltd 263
Systems Africa (Pty) Ltd 267
Systems Applications Products (South Africa) (Pty) Ltd 268
T-Systems South Africa (Pty) Ltd 271
Takealot Online (RF) (Pty) Ltd 273
Teraco Data Environments (Pty) Ltd 278
Time and Attendance Solutions (Pty) Ltd 281
Toppan Gravity (Pty) Ltd 282
Trac Tech (Pty) Ltd 284
Transaction Control Technologies (SA) (Pty) Ltd 286
Trustlink (Pty) Ltd 288
Verifone Africa (Pty) Ltd 290
Virdi Distribution SA (Pty) Ltd 292
Wizzit Digital SA (Pty) Ltd 294
Xneelo (Pty) Ltd 296
COMPANY PROFILES - Wholesale and Retail of Laptops, Desktops and Peripherals 298
Acer Africa (Pty) Ltd 298
Alviva Holdings (Pty) Ltd 300
AOLC (Pty) Ltd 304
ASUSTek Computer Inc 306
Bidvest Office (Pty) Ltd 310
CHM Vuwani Computer Solutions (Pty) Ltd 313
CoCre8 Technology Solutions (Pty) Ltd 315
Dell Computer (Pty) Ltd 317
Esquire System Technology (Pty) Ltd 319
Hisense SA Sales Holdings (Pty) Ltd 321
Huawei Technologies Africa (Pty) Ltd 323
Intel South Africa Corporation 325
ITEC SA (Pty) Ltd 327
JD Consumer Electronics and Appliances (Pty) Ltd 329
Lenovo (South Africa) (Pty) Ltd 331
LG Electronics S A (Pty) Ltd 333
Microsoft (S A) (Pty) Ltd 335
Mustek Ltd 340
Oracle Corporation (South Africa) (Pty) Ltd 345
Ricoh South Africa (Pty) Ltd 347
Samsung Electronics South Africa (Pty) Ltd 349
Tarsus Distribution (Pty) Ltd 351

Report Coverage

This report focuses on the IT industry, including hardware manufacturing, assembly, and supply; software development and supply; and retail sales of hardware and software. It includes information on the size of the sector, rankings, spending forecasts and estimates, notable players and their performance, corporate actions, regulation, influencing factors and trends. There are profiles of 105 companies, including major software and hardware companies such as AdaptIT, Business Connexion, Dell and IBM, ecommerce companies such as Africa Online and Takealot, transaction technology companies such as Mastercard and MediKredit and companies that have come under scrutiny such as Ayo and EOH.

Introduction

This report focuses on the IT industry, including hardware manufacturing, assembly, and supply; software development and supply; and retail sales of hardware and software. In spite of its considerable downsides, the COVID-19 pandemic has given an enormous boost to digital transformation in many sectors. According to the Department of Communications and Digital Technologies, digital transformation in South Africa is affecting all levels of society including individual citizens, government, big and small businesses. The changes permeate almost every industry and every facet of life such as health, education, safety and security, social services, environment and climate change. The pandemic wasn’t the only challenge South Africans lived through in 2021: supply chain issues, chip shortages, an upsurge in cybercrime, and the July riots all had a major impact on South African companies and the way they work. The IT sector is expecting the increasing access to broadband and fibre and the release of spectrum to drive digital transformation in the country. It is too early to determine what effect the Russian invasion of Ukraine will have on the South African economy and ICT sector, especially in terms of cybersecurity and supply chains.

Strengths

• Ability to deliver solutions to meet local needs.
• Large number of mergers, acquisitions and partnerships to increase competition, services and expand markets.
• Strong entrepreneurial and startup initiatives.
• Strong presence of established South African and multinational companies that introduce the latest technology.
• Supports the operations and facilitates the efficiency of other sectors.
• The globalised nature of the broader ICT industry enables South Africa to acquire, develop, adapt, implement and support the latest technologies.
• The South African IT sector is generally robust, has access to the latest technologies and methodologies and underpins the operations of most other sectors of the economy.

Weaknesses

• As a service industry, the growth of the sector is dependent on client demand which slows during economic downturns and government austerity efforts.
• Extreme shortage of professional skills to offer existing services and keep pace with new developments, resulting in a reliance on external and imported skills.
• Fallout from IT company involvement in procurement irregularities.
• High cost of importing ICT hardware, software and services due to exchange rate.
• Network and ICT readiness are not as high as they should be.
• Reliance on imported products.

Opportunities

•  Ongoing technological developments.
• Development of smart cities and provinces and a large number of e-services such as e-learning, e-payments, e-governance and e-commerce.
• Development of software packages to meet local needs.
• ICT SME development strategies to unlock business opportunities and create an enabling business and administrative environment for SMEs in the sector.
• Increased demand for IT products and services to accommodate lockdown restrictions such as remote working, ecommerce, e-learning and e-banking.
• Strong growth forecasts for online shopping.
• Strong growth in African countries can provide new markets.

Threats

•  Strict requirements and legal responsibilities covering the protection of personal information in existing and proposed legislation.
• Delayed implementation of vital projects such as digital migration and SA Connect and development of appropriate policies and regulations.
• Disruptive technologies and trends such as smart mobility and cloud computing are changing the face of the industry and could pose a threat if the skills shortage continues.
• ICT spend by the public and private sectors and consumers is affected by the weak economic situation and the pandemic.
• Security threats from increasing cybercrime and a lack of associated skills.
• The revised ICT sector code sets the minimum prescribed equity to be held by black people at 30% compared to 25% in the country’s generic code.
• Unreliable power supply and high electricity tariff increases affect the IT value chain, including users.

Outlook

Gartner forecasts that worldwide IT spending will increase by 5.1% year-on-year to US$4.5tn in 2022, and by 5% to US$4.5tn in 2023. The International Data Corporation’s earlier predictions expected global ICT spending to slow from over 7% growth in 2021 to just under 5% in 2022. In March 2022, it said Russia’s invasion of Ukraine would slow 2022 global ICT spending, with growth ranging from 2% if there is a prolonged war to just over 4% if the conflict is resolved within three months. Ahmed Mahomed, CEO of Datacentrix believes that “the ICT industry is in a robust position both locally and at a global level. Technology has allowed organisations to continue to flourish, despite COVID-related challenges, and as long as we continue to focus on understanding business requirements and applying technology to meet these requirements, the sector will remain strong. In today’s fast-paced world, companies need to stay relevant and prioritise innovation to survive. Because of this, it is becoming increasingly important for businesses to prioritise innovation.” According to Danielle Barber, senior manager, digital advisory at Dimension Data, “seismic changes like the pandemic have accelerated the digital transformation of the workforce and organisations have needed to shift to being people-led and technology run. We need to have the systems, processes, people and attitudes in place, ready for this change that requires a new mindset from employees and leadership alike. As a key part of this change, organisations need to look at how they enable, equip and empower their workforce to overcome challenges and make the most of opportunities, both now and in the future.” Tim Minahan, executive vice president at digital workspace solutions provider, Citrix said we can expect that companies will go virtual, the digital workspace will become the new office, employees will decide on their workplace preferences and a new class of jobs will emerge. “One thing is clear: work has changed forever, and there’s no going back.” The Google/International Finance Corporation report e-Conomy Africa 2020, states that “the African internet economy is one of the largest overlooked investment opportunities of the past decade with potential for profound impact on development. The mobile internet is transforming life across the continent with the support of growing local connectivity and mobility and a dynamic, young urban population.”

Read More..
The IT Industry in South Africa 2022

Full Report

R 9 500.00(ZAR) estimated $498.27 (USD)*

Industry Landscape

R 6 650.00(ZAR) estimated $ 348.79 (USD)*

Historical Reports

The IT Industry in South Africa 2024-01-16

R 20 000.00(ZAR) estimated $1048.98 (USD)*

View Report Add to Cart

The IT Industry in South Africa 2020-09-11

R 1 900.00(ZAR) estimated $99.65 (USD)*

View Report Add to Cart

The IT Industry in South Africa 2019-04-17

R 1 900.00(ZAR) estimated $99.65 (USD)*

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The IT Industry in South Africa 2017-12-11

R 1 900.00(ZAR) estimated $99.65 (USD)*

View Report Add to Cart

The IT Industry in South Africa 2016-09-29

R 1 900.00(ZAR) estimated $99.65 (USD)*

View Report Add to Cart

The IT Industry in South Africa 2015-05-25

R 1 900.00(ZAR) estimated $99.65 (USD)*

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Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Value Chain 4
2.2. Geographic Position 6
2.3. Size of the Industry 7
2.4. Key Success Factors and Pain Points 10
3. LOCAL 11
3.1. Key Trends 11
3.2. Notable Players 21
3.3. Trade 24
3.4. Corporate Actions 26
3.5. Regulations 34
3.6. Enterprise Development and Social Economic Development 38
4. AFRICA 41
5. INTERNATIONAL 46
6. INFLUENCING FACTORS 54
6.1. COVID-19 54
6.2. Economic Environment 55
6.3. Labour 57
6.4. IT-Related Government Initiatives 63
6.5. Governance and Procurement Issues 69
6.6. Technology, Research and Development (R&D) and Innovation 71
6.7. Cybersecurity and Crime 73
6.8. Environmental Issues 75
6.9. Electricity Supply Constraints 77
6.10. Cyclicality 78
7. COMPETITIVE ENVIRONMENT 78
7.1. Competition 78
7.2. Ownership Structure of the Industry 80
7.3. Barriers to Entry 80
8. SWOT ANALYSIS 81
9. OUTLOOK 82
10. INDUSTRY ASSOCIATIONS 83
11. REFERENCES 85
11.1. Publications 85
11.2. Websites 87
APPENDICES 88
Appendix 1 -Summary of Notable Players 88
Computer and Related Activities 88
Wholesale and Retail of Laptops, Desktops and Peripherals 96
Appendix 2 - SME Hardware Manufacturers, Hardware Suppliers, and e-Waste Refurbishers 99
Appendix 3 - IT-related Projects and Initiatives on the African Continent 101
Appendix 4 - 20 Highest Paid Positions at South Africa’s Multinational IT Companies and equivalent salaries at small to medium local enterprises 106
COMPANY PROFILES - COMPUTER AND RELATED ACTIVITIES 107
4Sight Holdings Ltd 107
Accenture (South Africa) (Pty) Ltd 110
Accsys (Pty) Ltd 112
ACI Global Ltd 114
Active Track (Pty) Ltd 116
AdaptIT Holdings Ltd 118
Adcorp Workforce Solutions (Pty) Ltd 122
Africa Online Retail (Pty) Ltd 127
Afrihost SP (Pty) Ltd 129
Altron Ltd 131
Alviva Holdings Ltd 136
AOLC (Pty) Ltd 141
AYO Technology Solutions Ltd 143
B D Silks CC 146
Barone Budge and Dominick (Pty) Ltd 148
Bidvest Office (Pty) Ltd 150
Blue Label Telecoms Ltd 153
Business Connexion (Pty) Ltd 158
Cash Connect Management Solutions (Pty) Ltd 161
CCI Technology Solutions (Pty) Ltd 163
CHM Vuwani Computer Solutions (Pty) Ltd 165
Cisco Systems (South Africa) (Pty) Ltd 168
Cocre8 IT Services (Pty) Ltd 170
ContinuitySA (Pty) Ltd 172
Daddy's Deals (Pty) Ltd 175
Datacentrix (Pty) Ltd 177
Datatec Ltd 179
Dimension Data (Pty) Ltd 183
Direct Transact (Pty) Ltd 185
Document Warehouse (Pty) Ltd (The) 187
EasyPay (Pty) Ltd 190
Ecentric Payment Systems (Pty) Ltd 192
EOH Holdings Ltd 194
ERS Biometrics (Pty) Ltd 199
Faranani IT Services (Pty) Ltd 201
Flash Mobile Vending (Pty) Ltd 203
Gijima Group Ltd 206
Hewlett-Packard South Africa (Pty) Ltd 210
IBM South Africa (Pty) Ltd 212
Intel South Africa Corporation 214
International Time and Access Technologies CC 216
Iron Mountain South Africa (Pty) Ltd 218
Iron Mountain South Africa Information Management (Pty) Ltd 220
Iron Mountain South Africa Records Management (Pty) Ltd 222
IT-Dynamics (Pty) Ltd 224
ITEC SA (Pty) Ltd 226
Lightstone Consumer (Pty) Ltd 228
Mastercard Southern Africa (Pty) Ltd 229
MediKredit Integrated Healthcare Solutions (Pty) Ltd 231
Metrofile Holdings Ltd 233
Micro Focus Software South Africa (Pty) Ltd 238
Microsoft (S A) (Pty) Ltd 240
Morvest Group (Pty) Ltd 245
Mustek Ltd 248
Naspers Ltd 252
Net1 Applied Technologies South Africa (Pty) Ltd 256
Nomad Information Systems (Pty) Ltd 258
Onedayonly Offers (Pty) Ltd 260
Oracle Corporation (South Africa) (Pty) Ltd 262
Pay-Day Software Systems (Pty) Ltd 264
Paycorp Group (Pty) Ltd 266
PBT Group Ltd 268
Prism Payment Technologies (Pty) Ltd 271
QCK Lezmin 4648 CC 273
Ricoh South Africa (Pty) Ltd 274
Sage South Africa (Pty) Ltd 276
SAS Institute (Pty) Ltd 278
SBE International SA (Pty) Ltd 280
Setcom (Pty) Ltd 281
Siemens (Pty) Ltd 283
Silkwood Trading 18 (Pty) Ltd 287
Sirius Sales (Pty) Ltd 289
South African Bankers Services Company (Pty) Ltd 291
Spark ATM Systems (Pty) Ltd 294
State Information Technology Agency SOC Ltd 296
Stellar Capital Partners (Pty) Ltd 300
Systems Africa CC 303
Systems Applications Products (South Africa) (Pty) Ltd 305
T-Systems South Africa (Pty) Ltd 308
Takealot Online (RF) (Pty) Ltd 310
Teraco Data Environments (Pty) Ltd 315
Time and Attendance Solutions (Pty) Ltd 318
Time Attendance and Access Control CC 319
Toppan FaceTech (Pty) Ltd 321
Trac Tech (Pty) Ltd 324
Transaction Control Technologies (SA) (Pty) Ltd 326
Trillobate Marketing (Pty) Ltd 328
Trustlink (Pty) Ltd 330
Verifone Africa (Pty) Ltd 332
Virdi Distribution SA (Pty) Ltd 334
Visio Pix (Pty) Ltd 336
Wizzit Payments (Pty) Ltd 338
Xneelo (Pty) Ltd 340
COMPANY PROFILES - WHOLESALE AND RETAIL OF LAPTOPS, DESKTOPS AND PERIPHERALS 342
Acer Africa (Pty) Ltd 342
Alviva Holdings Ltd 344
AOLC (Pty) Ltd 348
ASUSTek Computer Inc 350
Bidvest Office (Pty) Ltd 354
CHM Vuwani Computer Solutions (Pty) Ltd 357
CoCre8 Technology Solutions (Pty) Ltd 360
Dell Computer (Pty) Ltd 362
Esquire System Technology (Pty) Ltd 364
Hisense SA Sales Holdings (Pty) Ltd 366
Huawei Technologies Africa (Pty) Ltd 368
Intel South Africa Corporation 370
ITEC SA (Pty) Ltd 372
JD Consumer Electronics and Appliances (Pty) Ltd 374
Lenovo (South Africa) (Pty) Ltd 376
LG Electronics S A (Pty) Ltd 378
Microsoft (S A) (Pty) Ltd 380
Mustek Ltd 385
Oracle Corporation (South Africa) (Pty) Ltd 389
Ricoh South Africa (Pty) Ltd 391
Samsung Electronics South Africa (Pty) Ltd 393
Tarsus Distribution (Pty) Ltd 395

Report Coverage

This report focuses on the IT industry, including hardware manufacturing, assembly, and supply; software development and supply; and retail sales of hardware and software. The report includes comprehensive information on the state and size of the sector, corporate action in South Africa and on the continent, private sector and government initiatives relating to online and technology-driven learning and e-commerce during lockdown and research and development. There are profiles of 108 companies including local divisions of international players such as Intel, IBM and Cisco, major homegrown companies such as Dimension Data, Datatec and EOH and specialised companies such as Spark ATM Systems and Lumbro Time Systems.

Introduction

This report focuses on the IT industry, including hardware manufacturing, assembly, and supply; software development and supply; and retail sales of hardware and software. The IT landscape in South Africa is currently dominated by local GDP contraction and the global coronavirus pandemic. The economic situation and lockdown restrictions to control the spread of the virus have had an extensive impact on economic activity but, according to International Data Corporation’s associate vice-president sub-Saharan Africa Mark Walker, “the coronavirus pandemic has deeply underscored commercial and government reliance on ICT as an essential component of the economy and society at large. Most technical roles are still in demand and will likely remain so as dependency on ICT increases. The impact of the pandemic and the remote working and learning scenarios has accelerated the adoption and use of digital transformation technologies”. The availability of internet connectivity has helped to maintain business continuity, keep children in education, and ensure online access to essential goods and services. However, the pandemic has also exposed significant areas of digital inequality and exclusion in areas without internet access.

Strengths

• Ability to deliver solutions to meet local needs.
• Large number of mergers, acquisitions and partnerships to increase competition, services and expand markets.
• Strong entrepreneurial and startup initiatives.
• Strong presence of established South African and multinational companies that introduce the latest technology.
• Supports the operations and facilitates the efficiency of other sectors.
• The globalised nature of the broader ICT industry enables South Africa to acquire, develop, adapt, implement and support the latest technologies.
• The South African IT sector is generally robust, has access to the latest technologies and methodologies and underpins the operations of most other sectors of the economy.

Weaknesses

• As a service industry, the growth of the sector is dependent on client demand which slows during economic downturns and government austerity efforts.
• Extreme shortage of professional skills to offer existing services and keep pace with new developments, resulting in a reliance on external and imported skills.
• Fallout from IT company involvement in procurement irregularities.
• High cost of importing ICT hardware, software and services due to exchange rate.
• Network and ICT readiness are not as high as they should be.
• Reliance on imported products.

Opportunities

•  Ongoing technological developments.
• Development of smart cities and provinces and the proliferation of e-services such as e-learning, e-payments, e-governance and e-commerce.
• Development of software packages to meet local needs.
• ICT SME development strategies to unlock business opportunities and create an enabling business and administrative environment for SMEs in the sector.
• Increased demand for IT products and services to accommodate lockdown restrictions such as remote working, e-commerce, e-learning and e-banking.
• Strong growth forecasts for online shopping.
• Strong growth in African countries can provide new markets.

Threats

•  Strict requirements and legal responsibilities covering the protection of personal information in existing and proposed legislation.
• Delayed implementation of vital projects such as digital migration and SA Connect.
• Disruptive technologies and trends such as smart mobility and cloud computing are changing the face of the industry and could pose a threat if the skills shortage continues.
• ICT spend by the public and private sectors and consumers is affected by the coronavirus pandemic.
• Security threats from increasing cybercrime and a lack of associated skills.
• The revised ICT sector code sets the minimum prescribed equity to be held by black people to 30% compared to 25% in the country’s generic code.
• Unreliable power supply and high electricity tariff increases affect the IT value chain, including users.

Outlook

The International Telecommunications Union confirms that the significant impact of the coronavirus pandemic on economic activity and spending has forced a revision of global economic and IT growth forecasts. “Even so, we are witnessing that in the current conditions some businesses may become more critical to our lives and could face an increase in demand, such as the case of the ICT industry. Digital technologies have become a critical enabler of connectivity facilitating continuity of our regular lives and connecting people more than ever before. The ICT sector is benefitting from increased opportunities from telework, telemedicine, food delivery and logistics, online and contactless payments, remote learning and entertainment.” Stats SA forecasts that the full impact of the coronavirus on the economy will become evident in GDP data for the second and third quarters of 2020. Adrian Schofield, production consultant at the Institute of Information Technology Professionals South Africa said lockdowns have resulted in winners and losers in the local ICT sector – winners are the networks supporting the increased usage of digital communications by business or citizens. The losers are generally the small and medium businesses whose clients stopped operating, some of which will never re-open. “While the ICT sector is likely to be better off than others, due to the long-term demand for technology products, services and skills, full recovery will take three years or more as demand for tech products and services either remains low or may not be affordable, even when there is an increased need”.

Read More..
The IT Industry in South Africa 2020

Full Report

R 1 900.00(ZAR) estimated $99.65 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 69.76 (USD)*

Historical Reports

The IT Industry in South Africa 2024-01-16

R 20 000.00(ZAR) estimated $1048.98 (USD)*

View Report Add to Cart

The IT Industry in South Africa 2022-04-30

R 9 500.00(ZAR) estimated $498.27 (USD)*

View Report Add to Cart

The IT Industry in South Africa 2019-04-17

R 1 900.00(ZAR) estimated $99.65 (USD)*

View Report Add to Cart

The IT Industry in South Africa 2017-12-11

R 1 900.00(ZAR) estimated $99.65 (USD)*

View Report Add to Cart

The IT Industry in South Africa 2016-09-29

R 1 900.00(ZAR) estimated $99.65 (USD)*

View Report Add to Cart

The IT Industry in South Africa 2015-05-25

R 1 900.00(ZAR) estimated $99.65 (USD)*

View Report Add to Cart

Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Value Chain 3
2.2. Geographic Position 4
3. SIZE OF THE INDUSTRY 5
4. STATE OF THE INDUSTRY 6
4.1. Local 6
4.1.1. Corporate Actions 11
4.1.2. Regulations 16
4.1.3. Enterprise Development and Socio-Economic Development 20
4.2. Continental 25
4.3. International 37
5. INFLUENCING FACTORS 45
5.1. Economic Environment 45
5.2. Coronavirus 47
5.3. IT-Related Government Initiatives 49
5.4. IT Investment in the Education Sector 52
5.4.1. Government 52
5.4.2. Private Sector 53
5.5. E-Learning: Initiatives to Address the Impact of Coronavirus on the Education Sector 55
5.6. Smart Provinces and Smart Cities 57
5.7. Technology, Research and Development (R&D) and Innovation 60
5.8. Labour 62
5.9. Cybersecurity and Crime 67
5.10. Environmental Concerns 69
5.11. Cyclicality 71
5.12. Electricity Supply Constraints 72
6. COMPETITION 73
6.1. Barriers to Entry 75
7. SWOT ANALYSIS 75
8. OUTLOOK 76
9. INDUSTRY ASSOCIATIONS 77
10. REFERENCES 79
10.1. Publications 79
10.2. Websites 80
APPENDIX 1 – SUMMARY OF NOTABLE PLAYERS 82
Computer and Related Activities 82
Wholesale and Retail of Laptops, Desktops and Peripherals 89
APPENDIX 2 93
SMME Hardware Manufacturers, Hardware Suppliers and e-Waste Refurbishers 93
APPENDIX 3 97
20 Highest Paid Positions at South Africa’s Multinational IT Companies 97
COMPANY PROFILES - COMPUTER AND RELATED ACTIVITIES 98
4SIGHT HOLDINGS LTD 98
ACCENTURE (SOUTH AFRICA) (PTY) LTD 101
ACI GLOBAL LTD 103
ACTIVE TRACK (PTY) LTD 105
ADAPTIT HOLDINGS LTD 107
AFRIHOST SP (PTY) LTD 111
ALLIED ELECTRONICS CORPORATION LTD 113
ALVIVA HOLDINGS LTD 118
AOLC ON-LINE (PTY) LTD 122
AYO TECHNOLOGY SOLUTIONS LTD 124
B D SILKS CC 127
BARONE BUDGE AND DOMINICK (PTY) LTD 129
BIDVEST OFFICE (PTY) LTD 131
BLUE LABEL TELECOMS LTD 134
BUSINESS CONNEXION (PTY) LTD 139
CASH CONNECT MANAGEMENT SOLUTIONS (PTY) LTD 142
CCI TECHNOLOGY SOLUTIONS (PTY) LTD 144
CHM VUWANI COMPUTER SOLUTIONS (PTY) LTD 146
CISCO SYSTEMS (SOUTH AFRICA) (PTY) LTD 149
COCRE8 IT SERVICES (PTY) LTD 151
CONTINUITYSA (PTY) LTD 153
DADDY'S DEALS (PTY) LTD 156
DATATEC LTD 158
DIMENSION DATA (PTY) LTD 161
DIRECT TRANSACT (PTY) LTD 163
DOCUMENT WAREHOUSE (PTY) LTD (THE) 165
EASYPAY (PTY) LTD 168
ECENTRIC PAYMENT SYSTEMS (PTY) LTD 170
EOH HOLDINGS LTD 172
ERS BIOMETRICS (PTY) LTD 177
FACE TECHNOLOGIES (PTY) LTD 179
FARANANI IT SERVICES (PTY) LTD 181
FLASH MOBILE VENDING (PTY) LTD 183
GIJIMA GROUP LTD 186
HEWLETT-PACKARD SOUTH AFRICA (PTY) LTD 190
IBM SOUTH AFRICA (PTY) LTD 192
INTEL SOUTH AFRICA CORPORATION 194
INTERNATIONAL TIME AND ACCESS TECHNOLOGIES CC 196
IRON MOUNTAIN SOUTH AFRICA (PTY) LTD 197
IRON MOUNTAIN SOUTH AFRICA INFORMATION MANAGEMENT (PTY) LTD 199
IRON MOUNTAIN SOUTH AFRICA RECORDS MANAGEMENT (PTY) LTD 201
IT-DYNAMICS (PTY) LTD 203
ITEC SA (PTY) LTD 205
KID ZONE (PTY) LTD (THE) 207
LIGHTSTONE CONSUMER (PTY) LTD 209
LOOT ONLINE (PTY) LTD 211
LUMBRO TIME SYSTEMS CC 213
MASTERCARD SOUTHERN AFRICA (PTY) LTD 214
MEDIKREDIT INTEGRATED HEALTHCARE SOLUTIONS (PTY) LTD 216
METROFILE HOLDINGS LTD 218
MICRO FOCUS SOFTWARE SOUTH AFRICA (PTY) LTD 222
MICROSOFT (S A) (PTY) LTD 224
MONDIAL IT SOLUTIONS (PTY) LTD 229
MORVEST GROUP (PTY) LTD 231
MUSTEK LTD 234
NOMAD INFORMATION SYSTEMS (PTY) LTD 238
ONEDAYONLY OFFERS (PTY) LTD 239
ORACLE CORPORATION (SOUTH AFRICA) (PTY) LTD 240
PARACON SA (PTY) LTD 242
PAY-DAY SOFTWARE SYSTEMS (PTY) LTD 244
PAYCORP CORPORATE SERVICES (PTY) LTD 246
PAYCORP GROUP (PTY) LTD 248
PBT GROUP LTD 250
PRISM PAYMENT TECHNOLOGIES (PTY) LTD 253
QCK LEZMIN 4648 CC 255
RICOH SOUTH AFRICA (PTY) LTD 256
SAGE SOUTH AFRICA (PTY) LTD 258
SAS INSTITUTE (PTY) LTD 260
SBE INTERNATIONAL SA (PTY) LTD 262
SETCOM (PTY) LTD 264
SIEMENS (PTY) LTD 266
SILKWOOD TRADING 18 (PTY) LTD 270
SOUTH AFRICAN BANKERS SERVICES COMPANY (PTY) LTD 272
SPARK ATM SYSTEMS (PTY) LTD 275
STATE INFORMATION TECHNOLOGY AGENCY SOC LTD 277
STELLAR CAPITAL PARTNERS LTD 281
SYSTEMS AFRICA CC 284
SYSTEMS APPLICATIONS PRODUCTS (SOUTH AFRICA) (PTY) LTD 285
T-SYSTEMS SOUTH AFRICA (PTY) LTD 288
TAKEALOT ONLINE (RF) (PTY) LTD 290
TERACO DATA ENVIRONMENTS (PTY) LTD 294
TIME AND ATTENDANCE SOLUTIONS (PTY) LTD 296
TIME ATTENDANCE AND ACCESS CONTROL CC 297
TRAC TECH (PTY) LTD 298
TRANSACTION CONTROL TECHNOLOGIES (SA) (PTY) LTD 299
TRILLOBATE MARKETING (PTY) LTD 301
TRUSTLINK (PTY) LTD 303
UNILEVER SOUTH AFRICA (PTY) LTD 305
VERIFONE AFRICA (PTY) LTD 308
VIRDI DISTRIBUTION SA (PTY) LTD 310
VISIO PIX (PTY) LTD 312
VSOLUTION (PTY) LTD 313
WIZZIT PAYMENTS (PTY) LTD 315
XNEELO (PTY) LTD 317
COMPANY PROFILES - WHOLESALE AND RETAIL OF LAPTOPS, DESKTOPS AND PERIPHERALS 319
ACER AFRICA (PTY) LTD 319
ALVIVA HOLDINGS LTD 321
AOLC ON-LINE (PTY) LTD 325
ASUSTEK COMPUTER INC 327
BIDVEST OFFICE (PTY) LTD 331
CHM VUWANI COMPUTER SOLUTIONS (PTY) LTD 334
COCRE8 TECHNOLOGY SOLUTIONS (PTY) LTD 337
DELL COMPUTER (PTY) LTD 339
ESQUIRE SYSTEM TECHNOLOGY (PTY) LTD 341
EVETECH (PTY) LTD 343
HISENSE SA SALES HOLDINGS (PTY) LTD 345
HUAWEI TECHNOLOGIES AFRICA (PTY) LTD 347
INTEL SOUTH AFRICA CORPORATION 349
ITEC SA (PTY) LTD 351
JD CONSUMER ELECTRONICS AND APPLIANCES (PTY) LTD 353
LENOVO (SOUTH AFRICA) (PTY) LTD 355
LG ELECTRONICS S A (PTY) LTD 357
MICROSOFT (S A) (PTY) LTD 359
MUSTEK LTD 364
ORACLE CORPORATION (SOUTH AFRICA) (PTY) LTD 368
RICOH SOUTH AFRICA (PTY) LTD 370
SAMSUNG ELECTRONICS SOUTH AFRICA (PTY) LTD 372
TARSUS DISTRIBUTION (PTY) LTD 374
WOOTWARE COMPUTERS (PTY) LTD 376

Introduction

This report focuses on the IT industry, including hardware manufacturing, assembly, and supply; software development and supply; and retail sales of both hardware and software. The IT landscape in South Africa is dominated by the government’s intention, in spite of weak economic growth and government’s cost-cutting measures, to introduce technologies associated with the Fourth Industrial Revolution. Global consulting company Accenture said that the implementation of key digital initiatives across government services and critical industry sectors could unlock R5-trillion in much-needed value for the economy. The South African IT sector’s market value was R300bn, or 6% of GDP, in 2018, with growth estimates ranging between 3.8% and 5% for 2019. IT spend is forecast to increase by 5.1% to R290.7bn in 2019, with global IT spend projected at US$3.8-trillion for the same period. Cybersecurity is a high priority which is not surprising as global statistics indicate that South Africa is the third most targeted country in the world for cyber-attacks. Employer participants in the 2018 ICT Skills Survey published by the Joburg Centre for Software Engineering and Institute of Information Technology Professionals ranked security/cybersecurity as the top skills-set priority for the third year in succession. The industry is somewhat tarnished by alleged IT-related procurement irregularities revealed through a number of commissions of inquiry and investigations.

Strengths

• Ability to deliver unique solutions to meet local needs.
• Clients are aware of the importance of IT to increase company efficiencies.
• Large number of mergers, acquisitions and partnerships to increase competition, service offerings and expand markets.
• Strong entrepreneurial and start-up initiatives.
• Strong presence of established South African and multi-national companies that introduce the latest technology.
• The globalised nature of the broader ICT industry enables South Africa to acquire, develop, adapt, implement and support the latest technologies.

Weaknesses

• As a service industry, the growth of the sector is dependent on client demand which slows during economic downturns and government’s cost-cutting efforts.
• Extreme shortage of professional skills to offer existing services and keep pace with new developments, resulting in a reliance on external and imported skills.
• Fallout from IT company involvement in procurement irregularities.
• High cost of importing equipment and software due to rand/dollar exchange rate.
• Network and ICT readiness are not as high as they should be.
• Reliance on imported products.

Opportunities

•  Continuous new technological developments provide opportunities for growth.
• Development of smart cities and provinces and the proliferation of e-services such as e-learning, e-payments, e-governance and e-commerce provide opportunities for growth.
• Development of software packages to meet local needs is an opportunity for growth.
• Government focus on the development of a digital economy.
• ICT SMME Development Strategy to unlock the business opportunities and create an enabling business and administrative environment for SMMEs in the sector.
• Strong growth in African countries can provide new markets.
• Stronger growth forecasts for online shopping provide opportunities for growth in the sector as a whole.

Threats

•  Strict requirements and legal responsibilities covering the protection of personal information in existing and proposed legislation. Protection of personal information legislation has altered the scope of data protection and management, especially with the increase in cybercrime, and compliance is non-negotiable with penalties including heavy fines and prison terms.
• Delayed implementation of vital projects such as digital migration and SA Connect restricts the growth of the sector.
• Disruptive technologies and transformational megatrends such as smart mobility and cloud computing are changing the face of the industry and could pose a threat if the skills shortage continues.
• Due to the country’s heavy reliance on ICT, unreliable power supply and high electricity tariff increases will affect the entire IT value chain, including users.
• minimum prescribed equity to be held by black people to 30% versus 25% in the country’s generic code.
•&

Outlook

The International Data Corporation believes that “business spending on ICT will be caught in the crossfire of headwinds and tailwinds over the next five years as a softening global economy puts pressure on the ability of organisations to increase technology budgets while at the same time their growth and competitiveness is increasingly dependent on digital transformation, artificial intelligence and data analytics. In the short term, the trade war between the US and China continues to add volatility to the outlook.” International Data Corporation’s Mark Walker emphasises that “competition is going to become incredibly intense over the next year. There must be a platform for collaboration in order to gain market share. The way technology is moving at the moment is that there is so much happening that very few companies can do end-to-end solutions. So, look for opportunities to collaborate and platforms that you can build on together. We are going to have to fight for every cent, there will be a lot of competition for market share and it's going to be a tough environment in South Africa for the next 12 months.” In his address to the International Telecommunication Union conference in September 2018 president Cyril Ramaphosa stated that “South Africa recently embarked on an investment drive to attract US$100bn in new investment in the country over the next five years. We are determined that the ICT sector be an integral part of this investment drive, with a focus on infrastructure investment, e-commerce, local manufacturing of equipment, and innovation.” The Accenture report on Unlocking Digital Value for Business and Society in South Africa to 2026 estimates that the implementation of key digital initiatives across government services and critical industry sectors could unlock R5-trillion in much needed value for industry, consumers and society in South Africa.

The IT Industry in South Africa 2019

Full Report

R 1 900.00(ZAR) estimated $99.65 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 69.76 (USD)*

Historical Reports

The IT Industry in South Africa 2024-01-16

R 20 000.00(ZAR) estimated $1048.98 (USD)*

View Report Add to Cart

The IT Industry in South Africa 2022-04-30

R 9 500.00(ZAR) estimated $498.27 (USD)*

View Report Add to Cart

The IT Industry in South Africa 2020-09-11

R 1 900.00(ZAR) estimated $99.65 (USD)*

View Report Add to Cart

The IT Industry in South Africa 2017-12-11

R 1 900.00(ZAR) estimated $99.65 (USD)*

View Report Add to Cart

The IT Industry in South Africa 2016-09-29

R 1 900.00(ZAR) estimated $99.65 (USD)*

View Report Add to Cart

The IT Industry in South Africa 2015-05-25

R 1 900.00(ZAR) estimated $99.65 (USD)*

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Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Value Chain 4
2.2. Geographic Position 6
3. SIZE OF THE INDUSTRY 7
4. STATE OF THE INDUSTRY 8
4.1. Local 8
4.1.1. Corporate Actions 16
4.1.2. Regulations 25
4.1.3. Enterprise Development and Social Economic Development 28
4.2. Continental 31
4.3. International 42
5. INFLUENCING FACTORS 49
5.1. Economic Environment 49
5.2. Strong IT Investment in the Education Sector 50
5.3. Private Sector and Government Initiatives 53
5.4. E-commerce 57
5.5. “Smart Provinces” and “Smart Cities” 59
5.6. Technology, Research and Development (R&D) and Innovation 65
5.7. Labour 68
5.8. Cybersecurity and Crime 73
5.9. Environmental Issues 75
5.10. Cyclicality 76
5.11. Electricity Supply Constraints 77
6. COMPETITION 78
6.1. Barriers to Entry 80
7. SWOT ANALYSIS 80
8. OUTLOOK 82
9. INDUSTRY ASSOCIATIONS 83
10. REFERENCES 84
10.1. Publications 84
10.2. Websites 86
APPENDIX 1 - Summary of Notable Players 88
Computer and Related Activities 88
Wholesale and Retail of Laptops, Desktops and Peripherals 97
APPENDIX 2 101
SMME Hardware Manufacturers, Hardware Suppliers and e-Waste Refurbishers 101
APPENDIX 3 105
Salaries of IT Professionals Working in Small and Large Companies in South Africa 105
COMPANY PROFILES - COMPUTER & RELATED ACTIVITIES 106
4SIGHT HOLDINGS LTD 106
ACCENTURE (SOUTH AFRICA) (PTY) LTD 109
ACI GLOBAL LTD 111
ACTIVE TRACK (PTY) LTD 113
ADAPTIT HOLDINGS LTD 114
AFRIHOST SP (PTY) LTD 118
ALLIED ELECTRONICS CORPORATION LTD 120
ALVIVA HOLDINGS LTD 125
AOLC ON-LINE (PTY) LTD 129
ATTACHMATE GROUP SOUTH AFRICA (PTY) LTD 131
AXIZ (PTY) LTD 133
AYO TECHNOLOGY SOLUTIONS LTD 135
B D SILKS CC 138
BARONE BUDGE AND DOMINICK (PTY) LTD 140
BIDVEST OFFICE (PTY) LTD 142
BLUE LABEL TELECOMS LTD 145
BUSINESS CONNEXION (PTY) LTD 150
CASH CONNECT MANAGEMENT SOLUTIONS (PTY) LTD 153
CASH PAYMASTER SERVICES (PTY) LTD 155
CCI TECHNOLOGY SOLUTIONS (PTY) LTD 158
CHM VUWANI COMPUTER SOLUTIONS (PTY) LTD 160
CISCO SYSTEMS (SOUTH AFRICA) (PTY) LTD 163
CONTINUITYSA (PTY) LTD 164
DADDY'S DEALS (PTY) LTD 167
DATATEC LTD 168
DIMENSION DATA (PTY) LTD 171
DIRECT TRANSACT (PTY) LTD 174
DOCUMENT WAREHOUSE (PTY) LTD (THE) 176
EASYPAY (PTY) LTD 179
ECENTRIC PAYMENT SYSTEMS (PTY) LTD 181
EOH HOLDINGS LTD 183
ERS BIOMETRICS (PTY) LTD 188
FACE TECHNOLOGIES (PTY) LTD 190
FARANANI IT SERVICES (PTY) LTD 192
FLASH MOBILE VENDING (PTY) LTD 194
FUJITSU SERVICES (PTY) LTD 197
GIJIMA GROUP LTD 199
HETZNER (PTY) LTD 203
HEWLETT-PACKARD SOUTH AFRICA (PTY) LTD 205
IBM SOUTH AFRICA (PTY) LTD 207
INCREDIBLE SOLUTIONS (S A) (PTY) LTD 209
INTEL SOUTH AFRICA CORPORATION 211
INTERNATIONAL TIME AND ACCESS TECHNOLOGIES CC 213
IRON MOUNTAIN SOUTH AFRICA (PTY) LTD 214
IRON MOUNTAIN SOUTH AFRICA INFORMATION MANAGEMENT (PTY) LTD 216
IRON MOUNTAIN SOUTH AFRICA RECORDS MANAGEMENT (PTY) LTD 218
IT-DYNAMICS (PTY) LTD 220
ITEC SA (PTY) LTD 222
KID ZONE (PTY) LTD (THE) 224
LIGHTSTONE CONSUMER (PTY) LTD 226
LOOT ONLINE (PTY) LTD 228
LUMBRO TIME SYSTEMS CC 230
MEDIKREDIT INTEGRATED HEALTHCARE SOLUTIONS (PTY) LTD 231
METROFILE HOLDINGS LTD 233
MICROSOFT (S A) (PTY) LTD 237
MONDIAL IT SOLUTIONS (PTY) LTD 242
MORVEST GROUP (PTY) LTD 244
MUSTEK LTD 247
NOMAD INFORMATION SYSTEMS (PTY) LTD 251
OLTIO (PTY) LTD 252
ONEDAYONLY OFFERS (PTY) LTD 254
ORACLE CORPORATION (SOUTH AFRICA) (PTY) LTD 255
PARACON SA (PTY) LTD 257
PAY-DAY SOFTWARE SYSTEMS (PTY) LTD 259
PAYCORP CORPORATE SERVICES (PTY) LTD 260
PAYCORP GROUP (PTY) LTD 262
PBT GROUP LTD 264
PRISM PAYMENT TECHNOLOGIES (PTY) LTD 267
QCK LEZMIN 4648 CC 269
REBEL TECH CC 270
RICOH SOUTH AFRICA (PTY) LTD 271
SAGE SOUTH AFRICA (PTY) LTD 273
SAS INSTITUTE (PTY) LTD 275
SBE INTERNATIONAL SA (PTY) LTD 277
SETCOM (PTY) LTD 278
SIEMENS (PTY) LTD 280
SILKWOOD TRADING 18 (PTY) LTD 284
SOUTH AFRICAN BANKERS SERVICES COMPANY (PTY) LTD 286
SPARK ATM SYSTEMS (PTY) LTD 289
STATE INFORMATION TECHNOLOGY AGENCY SOC LTD 291
STELLAR CAPITAL PARTNERS LTD 295
SYSTEMS AFRICA CC 299
SYSTEMS APPLICATIONS PRODUCTS (SOUTH AFRICA) (PTY) LTD 300
T-SYSTEMS SOUTH AFRICA (PTY) LTD 303
TAKEALOT ONLINE (RF) (PTY) LTD 305
TERACO DATA ENVIRONMENTS (PTY) LTD 308
TIME AND ATTENDANCE SOLUTIONS (PTY) LTD 310
TIME ATTENDANCE AND ACCESS CONTROL CC 311
TRAC TECH (PTY) LTD 312
TRANSACTION CONTROL TECHNOLOGIES (SA) (PTY) LTD 313
TRILLOBATE MARKETING (PTY) LTD 315
TRUSTLINK (PTY) LTD 316
UNILEVER SOUTH AFRICA (PTY) LTD 318
VERIFONE AFRICA (PTY) LTD 321
VIRDI DISTRIBUTION SA (PTY) LTD 323
VISIO PIX (PTY) LTD 324
VSOLUTION (PTY) LTD 325
WIZZIT PAYMENTS (PTY) LTD 327
COMPANY PROFILES - WHOLESALE AND RETAIL OF LAPTOPS, DESKTOPS AND PERIPHERALS 329
ACER AFRICA (PTY) LTD 329
ALVIVA HOLDINGS LTD 331
AOLC ON-LINE (PTY) LTD 335
ASUSTEK COMPUTER INC 337
AXIZ (PTY) LTD 340
BIDVEST OFFICE (PTY) LTD 342
CHM VUWANI COMPUTER SOLUTIONS (PTY) LTD 345
DELL COMPUTER (PTY) LTD 348
ESQUIRE SYSTEM TECHNOLOGY (PTY) LTD 350
EVETECH (PTY) LTD 352
FUJITSU SERVICES CORE (PTY) LTD 354
HISENSE SA SALES HOLDINGS (PTY) LTD 355
HUAWEI TECHNOLOGIES AFRICA (PTY) LTD 357
INCREDIBLE SOLUTIONS (S A) (PTY) LTD 359
INTEL SOUTH AFRICA CORPORATION 361
ITEC SA (PTY) LTD 363
JD GROUP (PTY) LTD 365
LENOVO (SOUTH AFRICA) (PTY) LTD 368
LG ELECTRONICS SA (PTY) LTD 370
MICROSOFT (S A) (PTY) LTD 372
MUSTEK LTD 377
ORACLE CORPORATION (SOUTH AFRICA) (PTY) LTD 381
RICOH SOUTH AFRICA (PTY) LTD 383
SAMSUNG ELECTRONICS SOUTH AFRICA (PTY) LTD 385
TARSUS DISTRIBUTION (PTY) LTD 387
WOOTWARE COMPUTERS (PTY) LTD 389

Report Coverage

The detailed South African Information Technology Sector report provides statistics and ratings for the local industry, describes current conditions and discusses the factors that include the success of the sector. Business Connexion (BCX) Group Ltd, formerly known as Telkom Business Connexion, is one of the 119 companies profiled in the report. Since its re-branding in February 2017, the company has announced the sale of its ICT training solutions subsidiary Netcampus and entered into a partnership with GE aimed at providing digital technological solutions to the agri-processing sector. Also profiled is 4Sight Group, the first pure technology company to list on the JSE’s AltX in 18 years. The group was formed after the acquisition of digital services company Digitata Mauritius in June 2017. In October 2017 it acquired 100% of the shares in BluESP Holdings and its wholly-owned subsidiary BluESP (Pty) Ltd, and shortly afterwards in December it acquired AGE Technologies JHB Pty Ltd.

Introduction

Both the global and local Information Technology (IT) sectors are highly competitive and operate in a rapidly changing landscape with new technologies posing both an opportunity and a threat. The South African IT sector, with an estimated annual market value of R270bn for 2017, or 6% of GDP, is expected to grow at 4% for 2017, down from 5% in 2016. Slow economic growth has resulted in restrained spending by existing customers, a lack of new customers and low demand for ICT skills. However, role players believe that the National Integrated ICT Policy White Paper and the ICT Small, Medium and Micro-sized Enterprises (SMME) Development Strategy, once implemented, should provide a boost to growth opportunities in the sector. This report focuses on the IT industry, including hardware manufacturing, assembly, and supply; software development and supply; and retail sales of both hardware and software.

Strengths

• Ability to deliver unique solutions to meet local needs.
• Clients are aware of the importance of IT to increase company efficiencies.
• Large number of mergers, acquisitions and partnerships to increase competition, service offerings and expand markets.
• Strong presence of established South African and multi-national companies that introduce the latest technology.
• The globalised nature of the broader ICT industry enables South Africa to acquire, develop, adapt, implement and support the latest technologies.

Weaknesses

• As a service industry, the growth of the sector is dependent on client demand which slows during economic downturns.
• Extreme shortage of professional skills to offer existing services and keep pace with new developments, resulting in a reliance on external and imported skills.
• High cost of importing equipment and software due to rand/dollar exchange rate.
• Lack of local R & D initiatives and reliance on imported products.
• Network and ICT readiness are not as high as they should be.

Opportunities

•  Continuous new technological developments provide opportunities for growth.
• Development of smart cities and provinces and the proliferation of e-services such as e-learning, e-payments, e-governance and e-commerce provide opportunities for growth.
• Development of software packages to meet local needs is an opportunity for growth.
• ICT SMME Development Strategy that aims to unlock the business opportunities and create an enabling business and administrative environment for SMMEs in the sector.
• Strong growth in African countries can provide new markets.
• Stronger growth forecasts for online shopping provide opportunities for growth in the sector as a whole.

Threats

• Delayed implementation of vital projects such as digital migration and SA Connect restricts the growth of the sector.
• Disruptive technologies and transformational megatrends such as smart mobility and cloud computing are changing the face of the industry and could pose a threat if the skills shortage continues.
• Due to the country’s heavy reliance on ICT, high electricity tariff increases will affect the entire IT value chain, including users.
• Non-compliance with existing and proposed POPI legislation could result in penalties including heavy fines and prison terms.
• Security threats from increasing cybercrime accompanied by a serious lack of associated skills.

Outlook

The South African IT spend is forecast to increase by 3.4% to R275bn in 2018, with the global IT spend projected at US$3.7-trillion for the same period. Dimension Data’s publication on the Top IT predictions for 2018 emphasises that the enterprise IT landscape is changing fast. “New technologies, management models and practices are proliferating rapidly. These trends, that pose both a threat and an opportunity, are likely to have a huge impact on how businesses interact with customers, as well as how employees work.” At the same time IITPSA’s Adrian Schofield warns that new digital technology with increased internet access and demand for products and services to deliver knowledge and information electronically also increases opportunities for cybercrime. He believes that a concerted and collaborative effort is required by governments and the IT sector to protect technology users from this threat.

Read More..
The IT Industry in South Africa 2017

Full Report

R 1 900.00(ZAR) estimated $99.65 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 69.76 (USD)*

Historical Reports

The IT Industry in South Africa 2024-01-16

R 20 000.00(ZAR) estimated $1048.98 (USD)*

View Report Add to Cart

The IT Industry in South Africa 2022-04-30

R 9 500.00(ZAR) estimated $498.27 (USD)*

View Report Add to Cart

The IT Industry in South Africa 2020-09-11

R 1 900.00(ZAR) estimated $99.65 (USD)*

View Report Add to Cart

The IT Industry in South Africa 2019-04-17

R 1 900.00(ZAR) estimated $99.65 (USD)*

View Report Add to Cart

The IT Industry in South Africa 2016-09-29

R 1 900.00(ZAR) estimated $99.65 (USD)*

View Report Add to Cart

The IT Industry in South Africa 2015-05-25

R 1 900.00(ZAR) estimated $99.65 (USD)*

View Report Add to Cart

Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Value Chain 3
2.2. Geographic Position 5
3. SIZE OF THE INDUSTRY 6
4. STATE OF THE INDUSTRY 19
4.1. Local 19
4.1.1. Corporate Actions 26
4.1.2. Regulations 35
4.1.3. Enterprise Development and Social Economic Development 41
4.2. Continental 45
4.3. International 49
5. INFLUENCING FACTORS 56
5.1. Economic Environment 56
5.2. Strong IT Investment in the Education Sector 57
5.3. ICT SMME Development Strategy 59
5.4. “Smart Provinces” and “Smart Cities” 60
5.5. Technology, Research and Development (R&D) and Innovation 63
5.6. Labour 66
5.7. Cybersecurity and Crime 71
5.8. Environmental Issues 73
5.9. Cyclicality 75
6. COMPETITION 75
6.1. Barriers to Entry 76
7. SWOT ANALYSIS 77
8. OUTLOOK 78
9. INDUSTRY ASSOCIATIONS 78
10. REFERENCES 80
10.1. Publications 80
10.2. Websites 81
APPENDIX 1 83
SMME Hardware Manufacturers, Hardware Suppliers and e-Waste Refurbishers 83
APPENDIX 2 87
Salaries of IT professionals working in small and large companies in South Africa 87
COMPANY PROFILES - COMPUTER & RELATED ACTIVITIES 89
4SIGHT HOLDINGS LTD 89
ACCENTURE (SOUTH AFRICA) (PTY) LTD 91
ACI GLOBAL LTD 93
ADAPTIT HOLDINGS LTD 95
AFRIHOST (PTY) LTD 98
ALLIED ELECTRONICS CORPORATION LTD 100
ALVIVA HOLDINGS LTD 104
AOLC ON-LINE (PTY) LTD 108
ATTACHMATE GROUP SOUTH AFRICA (PTY) LTD 109
AXIZ (PTY) LTD 111
AYO TECHNOLOGY SOLUTIONS LTD 113
BARONE BUDGE AND DOMINICK (PTY) LTD 115
BIDVEST OFFICE (PTY) LTD 117
BLUE LABEL TELECOMS LTD 121
BUSINESS CONNEXION (PTY) LTD 125
CASH CONNECT MANAGEMENT SOLUTIONS (PTY) LTD 129
CASH PAYMASTER SERVICES (PTY) LTD 131
CCI TECHNOLOGY SOLUTIONS (PTY) LTD 133
CHM VUWANI COMPUTER SOLUTIONS (PTY) LTD 135
CISCO SYSTEMS (SOUTH AFRICA) (PTY) LTD 138
CONTINUITYSA (PTY) LTD 139
DADDY'S DEALS (PTY) LTD 142
DATATEC LTD 143
DIMENSION DATA (PTY) LTD 146
DIRECT TRANSACT (PTY) LTD 149
DOCUMENT WAREHOUSE (PTY) LTD (THE) 151
EASYPAY (PTY) LTD 154
ECENTRIC PAYMENT SYSTEMS (PTY) LTD 156
ENTERPRISE ELECTRONIC COMMERCE (SA) (PTY) LTD 158
EOH HOLDINGS LTD 160
FACE TECHNOLOGIES (PTY) LTD 164
FARANANI IT SERVICES (PTY) LTD 166
FLASH MOBILE VENDING (PTY) LTD 168
FUJITSU SERVICES (PTY) LTD 171
GIJIMA GROUP LTD 173
HETZNER (PTY) LTD 177
HEWLETT-PACKARD SOUTH AFRICA (PTY) LTD 179
IBM SOUTH AFRICA (PTY) LTD 181
INCREDIBLE SOLUTIONS (S A) (PTY) LTD 184
INTEGR8 IT (PTY) LTD 186
INTEL SOUTH AFRICA CORPORATION 188
IRON MOUNTAIN SOUTH AFRICA (PTY) LTD 190
IRON MOUNTAIN SOUTH AFRICA INFORMATION MANAGEMENT (PTY) LTD 192
IRON MOUNTAIN SOUTH AFRICA RECORDS MANAGEMENT (PTY) LTD 194
IT-DYNAMICS (PTY) LTD 196
ITEC SA (PTY) LTD 198
KID ZONE (PTY) LTD (THE) 200
LIGHTSTONE CONSUMER (PTY) LTD 201
LOOT ONLINE (PTY) LTD 203
M I B TECHNOLOGY (PTY) LTD 205
MARINE DATA SOLUTIONS (PTY) LTD 207
MEDIKREDIT INTEGRATED HEALTHCARE SOLUTIONS (PTY) LTD 209
METROFILE HOLDINGS LTD 211
MICROSOFT (S A) (PTY) LTD 215
MONDIAL IT SOLUTIONS (PTY) LTD 218
MORVEST GROUP (PTY) LTD 220
MUSTEK LTD 223
OLTIO (PTY) LTD 227
ONEDAYONLY OFFERS (PTY) LTD 229
ORACLE CORPORATION (SOUTH AFRICA) (PTY) LTD 230
PARACON SA (PTY) LTD 232
PAYCORP CORPORATE SERVICES (PTY) LTD 234
PAYCORP GROUP (PTY) LTD 236
PBT GROUP LTD 238
PRISM PAYMENT TECHNOLOGIES (PTY) LTD 241
QCK LEZMIN 4648 CC 243
REBEL TECH CC 244
RICOH SOUTH AFRICA (PTY) LTD 245
SAGE SOUTH AFRICA (PTY) LTD 247
SAS INSTITUTE (PTY) LTD 249
SETCOM (PTY) LTD 251
SIAE MICROELETTRONICA (SOUTH AFRICA) (PTY) LTD 253
SIEMENS (PTY) LTD 255
SILKWOOD TRADING 18 (PTY) LTD 259
SOUTH AFRICAN BANKERS SERVICES COMPANY (PTY) LTD 260
SPARK ATM SYSTEMS (PTY) LTD 263
STATE INFORMATION TECHNOLOGY AGENCY SOC LTD 265
STELLAR CAPITAL PARTNERS LTD 268
SYSTEMS APPLICATIONS PRODUCTS (SOUTH AFRICA) (PTY) LTD 272
T-SYSTEMS SOUTH AFRICA (PTY) LTD 275
TAKEALOT ONLINE (RF) (PTY) LTD 277
TERACO DATA ENVIRONMENTS (PTY) LTD 280
TRANSACTION CONTROL TECHNOLOGIES (SA) (PTY) LTD 282
TRILLOBATE MARKETING (PTY) LTD 284
TRUSTLINK (PTY) LTD 285
UCS SOLUTIONS (PTY) LTD 287
UNILEVER SOUTH AFRICA (PTY) LTD 289
VERIFONE AFRICA (PTY) LTD 292
VOUCHERCLOUD SA (PTY) LTD 294
VSOLUTION (PTY) LTD 295
WIZZIT PAYMENTS (PTY) LTD 297
COMPANY PROFILES - WHOLESALE AND RETAIL OF LAPTOPS, DESKTOPS AND PERIPHERALS 299
ACER AFRICA (PTY) LTD 299
ALVIVA HOLDINGS LTD 301
AOLC ON-LINE (PTY) LTD 305
ASUSTEK COMPUTER INC 306
AXIZ (PTY) LTD 311
BIDVEST OFFICE (PTY) LTD 313
CHM VUWANI COMPUTER SOLUTIONS (PTY) LTD 317
DELL COMPUTER (PTY) LTD 320
ESQUIRE SYSTEM TECHNOLOGY (PTY) LTD 322
EVETECH (PTY) LTD 324
FUJITSU SERVICES CORE (PTY) LTD 325
HISENSE SA SALES HOLDINGS (PTY) LTD 326
HUAWEI TECHNOLOGIES AFRICA (PTY) LTD 328
INCREDIBLE SOLUTIONS (S A) (PTY) LTD 330
INTEL SOUTH AFRICA CORPORATION 332
ITEC SA (PTY) LTD 334
JD GROUP (PTY) LTD 336
LENOVO (SOUTH AFRICA) (PTY) LTD 339
LG ELECTRONICS SA (PTY) LTD 341
MICROSOFT (S A) (PTY) LTD 343
MUSTEK LTD 346
ORACLE CORPORATION (SOUTH AFRICA) (PTY) LTD 350
RICOH SOUTH AFRICA (PTY) LTD 352
SAHARA COMPUTERS (PTY) LTD 354
SAMSUNG ELECTRONICS SOUTH AFRICA (PTY) LTD 355
TARSUS DISTRIBUTION (PTY) LTD 357
WOOTWARE COMPUTERS (PTY) LTD 360

Report Coverage

The South African Information Technology Sector report describes current conditions in the industry which comprises hardware manufacturing, assembly, consulting and supply; software development, consulting and supply; and retail sales of hardware and software. Recent developments including the challenges facing the IT sector and merger and acquisition activity are included in this detailed report. In total 97 companies involved in the sector are profiled, ranging from major players EOH Holdings Ltd and Dimension Data, to small consultancies such as Faranani IT Services (Pty) Ltd and Evetech (Pty) Ltd, a computer system builder and retailer of computer related products.

Introduction

This report focuses on the Information Technology (IT) industry, which includes hardware manufacturing, assembly, consulting and supply; software development, consulting and supply; and retail sales of hardware and software. The Minister of Telecommunications and Postal Services states that IT not only “transforms how we live, how we do business, how we relate to each other and even how we play, but it has become an important enabler of economic development and social inclusion.” However, delays in the implementation of the National Integrated ICT Policy White Paper and vital projects such as digital migration and SA Connect are restricting not only the growth of the sector, but South Africa’s economic growth and social development. The growth of the South African IT industry is estimated at approximately 6% and Gartner Inc. projects IT spend for 2016 at R272bn, up by 3.8% from 2015.

Strengths

• Ability to deliver unique solutions to meet local needs.
• Clients are aware of the importance of IT to increase company efficiencies.
• Large number of mergers, acquisitions and partnerships to increase competition, service offerings and expand markets.
• Strong presence of established South African and multi-national companies that introduce the latest technology.

Weaknesses

• As a service industry, the growth of the sector is dependent on client demand which slows during economic downturns.
• Extreme shortage of professional skills to offer existing services and keep pace with new developments, resulting in a reliance on external and imported skills.
• High cost of importing equipment and software due to rand/dollar exchange rate.
• Lack of local R & D initiatives and reliance on imported products.
• Network and ICT readiness are not as high as they should be.

Opportunities

• Anticipated growth driven by strong government support and initiatives to develop the IT industry and provide internet access to all.
• Continuous new technological developments provide opportunities for growth.
• Development of smart cities and provinces and the proliferation of e-services such as e-learning, e-payments, e-governance and e-commerce provide opportunities for growth.
• Development of software packages to meet local needs is an opportunity for growth.
• Initiatives around incentives, research and development capabilities, skills and innovation to facilitate SMME entry into the ICT sector.
• Strong growth in African countries can provide new markets.

Threats

• Delayed implementation of policies such as the National Integrated ICT Policy White Paper and vital projects such as digital migration and SA Connect restricts the growth of the sector.
• Disruptive technologies and transformational megatrends such as smart mobility and cloud computing are changing the face of the industry and could pose a threat if the skills shortage continues.
• Due to the country’s heavy reliance on ICT, unreliable electricity supply will not only affect IT services, but negatively affect the economy as a whole.
• Increased costs resulting from the strict requirements covering the protection of personal information in existing and proposed legislation.
• Security threats from increasing cybercrime.

Outlook

Deloitte’s 2016 report on The New Organisation: Different by Design confirms, “Digital technology is now everywhere, disrupting business models and radically changing the workplace and the way work is done. Technologies such as mobile devices, 3D printing, sensors, cognitive computing, and the Internet of Things are changing the way companies design, manufacture, and deliver almost every product and service, while digital disruption and social networking have changed the way organisations hire, manage, and support people.” Sebastian Isaac, Business Development Manager at Rectron, believes, “While we still have a way to go, South Africa is keeping up with global IT trends. As a country, we have a lot of innovation to offer and we have the potential to take giant leaps especially in the IoT space. Our challenge in the coming years is to ensure that we upskill and encourage people to be part of the IoT ecosystem and the IT sector in general. We also need to educate other sectors about the value that working in the cloud and using remote monitoring and management of data can add to business.”

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The IT Industry in South Africa 2016

Full Report

R 1 900.00(ZAR) estimated $99.65 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 69.76 (USD)*

Historical Reports

The IT Industry in South Africa 2024-01-16

R 20 000.00(ZAR) estimated $1048.98 (USD)*

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The IT Industry in South Africa 2022-04-30

R 9 500.00(ZAR) estimated $498.27 (USD)*

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The IT Industry in South Africa 2020-09-11

R 1 900.00(ZAR) estimated $99.65 (USD)*

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The IT Industry in South Africa 2019-04-17

R 1 900.00(ZAR) estimated $99.65 (USD)*

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The IT Industry in South Africa 2017-12-11

R 1 900.00(ZAR) estimated $99.65 (USD)*

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The IT Industry in South Africa 2015-05-25

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Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Value Chain 3
2.2. Geographic Position 4
3. SIZE OF THE INDUSTRY 5
4. STATE OF THE INDUSTRY 15
4.1. Local 15
4.1.1. Corporate Actions 21
4.1.2. Regulations 29
4.1.3. Enterprise Development and Job Creation 34
4.2. Continental 36
4.3. International 43
5. INFLUENCING FACTORS 49
5.1. Economic Environment 49
5.2. Government and Private Sector Initiatives 51
5.3. ICT Industrialisation and SMME Development 52
5.4. Strong IT Investment in the Education Sector 54
5.5. “Smart Provinces” and “Smart Cities” 55
5.6. Technology, Research and Development (R&D) and Innovation 58
5.7. Labour 60
5.8. Cybercrime 65
5.9. Environmental and Social Issues 67
5.10. Electricity Supply Constraints 69
6. COMPETITION 70
6.1. Barriers to Entry 71
7. SWOT ANALYSIS 72
8. OUTLOOK 73
9. INDUSTRY ASSOCIATIONS 73
10. REFERENCES 75
10.1. Publications 75
10.2. Websites 76
APPENDIX 1 79
PricewaterhouseCoopers Essential Eight Technologies – Description 79
APPENDIX 2 80
International Telecommunications Union: The Connect 2020 Goals and Targets 80
APPENDIX 3 81
SMME Hardware Manufacturers, Hardware Suppliers and e-Waste Refurbishers 81
APPENDIX 4 83
Real-world Salaries of IT Professionals in South Africa 83
COMPANY PROFILES - COMPUTER & RELATED ACTIVITIES 84
ACCENTURE (SOUTH AFRICA) (PTY) LTD 84
ACI GLOBAL LTD 86
ADAPTIT HOLDINGS LTD 88
AFRIHOST (PTY) LTD 91
ALLIED ELECTRONICS CORPORATION LTD 93
ATTACHMATE GROUP SOUTH AFRICA (PTY) LTD 97
BARONE BUDGE AND DOMINICK (PTY) LTD 99
BIDVEST OFFICE (PTY) LTD 101
BLUE LABEL TELECOMS LTD 104
BUSINESS CONNEXION (PTY) LTD 109
CASH CONNECT MANAGEMENT SOLUTIONS (PTY) LTD 114
CASH PAYMASTER SERVICES (PTY) LTD 116
CCI TECHNOLOGY SOLUTIONS (PTY) LTD 118
CHM VUWANI COMPUTER SOLUTIONS (PTY) LTD 120
CISCO SYSTEMS (SOUTH AFRICA) (PTY) LTD 123
DATACENTRIX HOLDINGS LTD 124
DATATEC LTD 128
DELOITTE SOUTH AFRICA 133
DIMENSION DATA (PTY) LTD 137
DIRECT TRANSACT (PTY) LTD 140
DOCU-FILE JHB (PTY) LTD 142
DOCUMENT WAREHOUSE (PTY) LTD (THE) 144
EASYPAY (PTY) LTD 147
ECENTRIC PAYMENT SYSTEMS (PTY) LTD 149
ENTERPRISE ELECTRONIC COMMERCE (SA) (PTY) LTD 151
EOH HOLDINGS LTD 153
ERNST AND YOUNG ADVISORY SERVICES (PTY) LTD 157
FACE TECHNOLOGIES (PTY) LTD 162
FARANANI IT SERVICES (PTY) LTD 164
FLASH MOBILE VENDING (PTY) LTD 166
FUJITSU SERVICES (PTY) LTD 169
GIJIMA GROUP LTD 170
HETZNER (PTY) LTD 174
HEWLETT-PACKARD SOUTH AFRICA (PTY) LTD 176
IBM SOUTH AFRICA (PTY) LTD 178
INTEGR8 IT (PTY) LTD 180
INTEL SOUTH AFRICA CORPORATION 182
IT-DYNAMICS (PTY) LTD 184
ITEC DISTRIBUTION (PTY) LTD 186
KPMG SERVICES (PTY) LTD 188
LIGHTSTONE CONSUMER (PTY) LTD 191
M I B TECHNOLOGY (PTY) LTD 193
MARINE DATA SOLUTIONS (PTY) LTD 195
MCKINSEY AND COMPANY AFRICA (PTY) LTD 197
MEDIKREDIT INTEGRATED HEALTHCARE SOLUTIONS (PTY) LTD 199
METROFILE HOLDINGS LTD 201
MICROSOFT (S A) (PTY) LTD 205
MONDIAL IT SOLUTIONS (PTY) LTD 208
MORVEST GROUP (PTY) LTD 210
MUSTEK LTD 213
OLTIO (PTY) LTD 217
ORACLE CORPORATION (SOUTH AFRICA) (PTY) LTD 219
PARACON SA (PTY) LTD 221
PAYCORP CORPORATE SERVICES (PTY) LTD 223
PAYCORP GROUP (PTY) LTD 225
PINNACLE HOLDINGS LTD 227
PRICEWATERHOUSECOOPERS INC 231
PRISM PAYMENT TECHNOLOGIES (PTY) LTD 241
RICOH SOUTH AFRICA (PTY) LTD 243
SAGE SOUTH AFRICA (PTY) LTD 245
SAS INSTITUTE (PTY) LTD 247
SETCOM (PTY) LTD 249
SIEMENS (PTY) LTD 251
SILKWOOD TRADING 18 (PTY) LTD 254
SOUTH AFRICAN BANKERS SERVICES COMPANY (PTY) LTD 255
SPARK ATM SYSTEMS (PTY) LTD 257
STATE INFORMATION TECHNOLOGY AGENCY SOC LTD 259
STELLAR CAPITAL PARTNERS LTD 263
SYSTEMS APPLICATIONS PRODUCTS (SOUTH AFRICA) (PTY) LTD 266
T-SYSTEMS SOUTH AFRICA (PTY) LTD 268
TRANSACTION CONTROL TECHNOLOGIES (SA) (PTY) LTD 270
TRUSTLINK (PTY) LTD 272
UCS SOLUTIONS (PTY) LTD 274
VERIFONE AFRICA (PTY) LTD 276
VSOLUTION (PTY) LTD 278
WIZZIT PAYMENTS (PTY) LTD 280
COMPANY PROFILES - WHOLESALERS OF LAPTOPS, DESKTOPS AND PERIPHERALS 282
ACER AFRICA (PTY) LTD 282
ASUSTEK COMPUTER INC 284
AXIZ (PTY) LTD 290
DELL COMPUTER (PTY) LTD 292
ESQUIRE SYSTEM TECHNOLOGY (PTY) LTD 294
FUJITSU SERVICES CORE (PTY) LTD 296
HISENSE SA SALES HOLDINGS (PTY) LTD 298
HUAWEI TECHNOLOGIES AFRICA (PTY) LTD 299
INTEL SOUTH AFRICA CORPORATION 301
LENOVO (SOUTH AFRICA) (PTY) LTD 303
LG ELECTRONICS SA (PTY) LTD 305
MICROSOFT (S A) (PTY) LTD 307
MUSTEK LTD 310
SAMSUNG ELECTRONICS SOUTH AFRICA (PTY) LTD 314
TARSUS DISTRIBUTION (PTY) LTD 316
COMPANY PROFILES - RETAILERS OF LAPTOPS, DESKTOPS AND PERIPHERALS 319
CHM VUWANI COMPUTER SOLUTIONS (PTY) LTD 319
EVETECH (PTY) LTD 322
JD GROUP LTD 323
LENOVO (SOUTH AFRICA) (PTY) LTD 329
LG ELECTRONICS SA (PTY) LTD 331
REBEL TECH CC 333
WOOTWARE COMPUTERS CC 334

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.

Introduction

Information Technology is an integral part of society because of its universal use across the economy and in society in general, and is an essential tool for enhancing access to information, education, finance, healthcare and other public services. At the same time its use creates jobs, protects the environment, mitigates natural disaster risks and ensures sustainable use of natural resources and food production. The IT industry in South Africa has an annual growth rate of 6% and employs almost 200,000 people. It contributes approximately 7% to GDP and IT spend for 2015 is projected at R143bn. This report focuses on the IT industry including consulting, software consulting and supply, data processing, database activities, maintenance and repair of office, accounting and computing machinery and other computer-related activities, but excludes hardware supply and rental.

Strengths

• Ability to deliver unique solutions to meet local needs.
• Clients are aware of the importance of IT to increase company efficiencies.
• Large number of mergers, acquisitions and partnerships to increase service offering and expand markets.
• Strong presence of established South African and multi-national companies that introduce the latest technology.

Weaknesses

• As a service industry, the growth of the sector is dependent on client demand which slows during economic downturns.
• Extreme shortage of professional skills to offer existing services and keep pace with new developments, resulting in a reliance on external skills.
• High cost of importing equipment and software due to rand/dollar exchange rate.
• Lack of local R & D initiatives and reliance on imported products.
• Network and ICT readiness are not as high as they should be.

Opportunities

• Anticipated growth driven by strong government support and initiatives to develop the IT industry and provide internet access to all.
• Continuous new technological developments provide opportunities for growth.
• Development of smart cities and provinces and the proliferation of e-services such as e-learning, e-payments, e-governance and e-commerce provide opportunities for growth.
• Development of software packages to meet local needs is an opportunity for growth.
• Initiatives around incentives, research and development capabilities, skills and innovation to facilitate SMME entry into the ICT sector.
• Strong growth in African countries can provide new markets.

Threats

• Disruptive technologies and transformational megatrends such as smart mobility and cloud computing are changing the face of the industry and could pose a threat if the skills shortage continues.
• Due to the country’s heavy reliance on ICT, unreliable electricity supply will not only affect IT services, but negatively affect the economy as a whole.
• Security threats from increasing cybercrime and the proliferation of smart mobile devices.
• Strict requirements covering the protection of personal information in existing and proposed legislation.

Outlook

The government’s initiatives to develop the IT industry through e-skills initiatives, internet access as well as the proliferation of e-services should provide a strong opportunity for growth, especially as they require public-private partnerships to succeed. However stakeholders have expressed concern at the slow implementation of government initiatives, such as the ICT policy, the broadband roll-out and digital migration, mainly as a result of leadership problems. Based on the proposed increased investment in the IT sector in South Africa, industry players are positive about the growth of the industry. Adrian Schofield forecasts continued growth as, “The spread of broadband access and the reduction in device costs will spur the growth in applications that meet consumer needs as well as enabling business and government to deliver products and services to their clients more effectively and more cheaply.” Telkom COO Brian Armstrong emphasised that consolidation in ICT is inevitable and believes that, “The sector is going to see brutal consolidation over the next decade. In an internet economy, scale matters; you have to be able to do things at scale. Small players will drive innovation and that’s good, but to scale you need to partner with people with scale." Meanwhile, Jebin George, a senior research analyst at IDC Middle East, Africa and Turkey, commented that, “Although South Africa's economic situation remains fragile owing to electricity shortages and strikes in the mining, manufacturing and utilities sectors, the IT market in the country will remain buoyant and continue to grow during the next four years."

Read More..
The IT Industry in South Africa 2015

Full Report

R 1 900.00(ZAR) estimated $99.65 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 69.76 (USD)*

Industry Organogram

R 450.00(ZAR) estimated $ 23.60 (USD)*

Historical Reports

The IT Industry in South Africa 2024-01-16

R 20 000.00(ZAR) estimated $1048.98 (USD)*

View Report Add to Cart

The IT Industry in South Africa 2022-04-30

R 9 500.00(ZAR) estimated $498.27 (USD)*

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The IT Industry in South Africa 2020-09-11

R 1 900.00(ZAR) estimated $99.65 (USD)*

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The IT Industry in South Africa 2019-04-17

R 1 900.00(ZAR) estimated $99.65 (USD)*

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The IT Industry in South Africa 2017-12-11

R 1 900.00(ZAR) estimated $99.65 (USD)*

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The IT Industry in South Africa 2016-09-29

R 1 900.00(ZAR) estimated $99.65 (USD)*

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Table of Contents

[ Close ]
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
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