South Africa's overall corporate market spend on IT is expected to grow at an average rate of 6,3% between 2009 and 2013, while telecommunications services is expected to increase at an average rate of 7,9% over the same period.
These are among the findings of BMI-TechKnowledge's latest End User Program Market Sizing and Forecast Reports.
All IT services categories show positive growth over the forecast period, although many companies have already cut IT spending significantly – most likely as a response to the current economic climate, says the report's authors.
Lesley-Anne Dos Santos, BMI-T’s enterprise research business manager, points out that the economic downturn has resulted in a consolidation of corporate companies, rationalisation, insolvencies and job losses.
Modest ICT spend growth rates are expected – however, the dynamics of the market are changing due to spend migrating from hardware to services.
BMI-T estimates the total IT market to be worth approximately R60,4-billion in 2008, with the majority of the spend coming from the corporate sector. The total telecommunications services market (includes fixed, mobile internet and other data) will be worth approximately R102,5-billion in 2008.
In the corporate market, including the Top 350, the IT category on which most money was spent in 2008 is hardware, which contributes 42% to total spend at a figure of R17,8-billion. I
T services spend contributes 41% to total spend, and software spend contributes 17% of total spend at R7,3-billion.
In contrast, BMI-T expects the most money in the corporate and Top 350 market telecoms service type will be spent on fixed voice, which contributes 38% to total spend at a figure of R17,6-billion. Mobile, LCR and bulk SMS spend comes close second at R17,2-billion, internet access has a spend of R3,75-billion and other data spend is R7,8-billion.