IT outsourcing holds 40% of South African IT market: IDC Report

January 16, 2012: South African IT outsourcing will hold 40% of the IT market in the current year. These statistics are published in the latest IDC report.

IDC, a provider of market intelligence and other services to corporate sector has made a detailed study and according to which South Africa is showing healthy uptake in the sector. The report also claim the IT outsourcing industry showed a growth of 8% starting from 2010.

Today South Africa is the 20th largest consumer of IT products and services. Experts gave the opinion that the current growth of the sector is mainly due to the rise in managed services. At present there is a healthy growth in outsourcing in South Africa. And this reflects the maturity of IT services segment in the country.

According to the research report, there was an increase in the uptake of services in the previous year, which is also expected to be showcased in the coming year. Particularly services such as network and desktop outsourcing were in its heights. The reports suggests that this uptake is because of incremental supply of data centre space as well as because of some other major reasons such as increased customer awareness.

It is expected that by 2015, the total IT services market will flourish to the maximum. And it will reach a compound growth rate of 8.7%. Since, South African companies are world leaders in many different categories; the expected result is an obvious one. The major players in the nation are advanced in prepayment and revenue management. They are also far ahead with fraud prevention systems.

IDC also expects that there will be a continued spending focus among end-users. So that there will be reduction in operating expenses in the companies, also resulting in an increase in efficiency.

Most of the biggest players have made their presence in South Africa such as IBM, Unisys, Microsoft and many others. The country has grown to be one among the favorite destinations for outsourcing within no time. The positive approach of the government authorities and the strategies implemented by the IT sector has helped to attract many companies into the nation. IDC also suggest that more investment into the sector will help service providers to provide better and quality services along with impressive revenue.

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