State-owned enterprises (SOEs) accounted for about 6,5%, or R3,15-billion, of the overall IT spend in South Africa during 2005. This is according to a report from BMI-TechKnowledge. 

Natalie Bryden, senior analyst and author of the report, says that services accounted for the bulk of IT spending at about R1,4-billion, followed by hardware at R975-million and software at R722-million.
“Enterprises such as SA Post Office and Transnet have undergone radical change in their approach to IT over the past few years as CIOs have sought to renegotiate supplier contracts, consolidate and standardise IT infrastructure, and in so doing, saving their organisations millions.”
The Transnet group of companiesis the largest consumer of IT products and services in the SOE space.
The company, which accounts for about 39% of all IT expenditure in the SOE sector, is expected to reduce its IT expenditure between 2006 and 2008 and will have a negative impact on the overall IT expenditure growth in this space.
In addition, the report has also uncovered that organisations such as SA Post Office, SABC and SAA are making use of newer technologies to generate revenue.
Looking beyond 2008, BMI-T is optimistic about a SOE IT spend recovery as government investment on key transport networks is expected to increase dramatically during the next few years, while investment in residential housing, community services, water and electricity has also been prioritised.