South Africa to spend US$5.7bn on IT services in 2015

storage-ianlamont-flickrTechnologies such as cloud, social and mobility rely on the smooth operation of systems integration. (Image source: IanLamont/Flickr) A report by International Data Corporation (IDC) has stated that South Africa is likely to spend US$5.7bn on IT services sector in 2015

This is a 10.5 per cent growth year-on-year (YoY), stated the report titled South Africa IT Services Market 2014-2018 Forecast and 2013 Analysis.

The global advisory services firm’s report has predicted that systems integrations would be the fastest growing sector in the next five years, with related expenditure increasing at a CAGR of 13.6 per cent. Technologies such as cloud, social and mobility rely on systems integrations in order to function smoothly.

Other services like application management outsourcing and application consulting and customisation are expected to grow at CAGR of 13 per cent each.

Lise Hagen, research manager for software and IT services in Africa at IDC, said, “IT initiatives in 2015 will not only continue to focus on technologies that enable continuous improvement and optimisation, but also deliver value to the business.”

Hagen added that new investments in IT would focus on cost-efficient technologies such as automation, cloud and SaaS. CIOs and IT decision-makers are being urged to cut costs and deliver services based on efficient IT processes that align with business objectives, while simultaneously supporting and sustaining business growth.

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