Overall IT spending in South Africa is set to reach $26,4-billion this year, up 2,5% on 2019.
That’s according to the latest predictions revealed by International Data Corporation (IDC) at its IDC Directions 2020 event.
IDC’s associate vice-president for South Africa, Mark Walker, says spending on software and IT services will reach $8,2-billion in 2020, an increase of 4,2% year on year.
He adds that infrastructure spending in the country (including servers, storage, and enterprise-level networks) will grow 3,3% to $880-million, while infrastructure-as-a-service (IaaS) investments will reach $204-million, having grown at a compound annual growth rate (CAGR) of 25% over the last five years.
Jyoti Lalchandani, IDC’s group vice-president and MD for the Middle East, Turkey, and Africa, urges South Africa’s technology suppliers to engage with new buyers, connect technology to the business goals of their customers, and deliver technology solutions that enable their clients to scale and operate at the pace of the digital economy.
“The digital economy is at a critical tipping point,” says Lalchandani. “In just a few short years, IDC forecasts that nearly half of all GDP worldwide will come from products and services offered by digitally transformed organisations.
“In order to thrive, organisations must define their new role in this digital economy and proactively address new customer requirements around personalization and trust.
“They must also develop new capabilities around digital innovation, work, and intelligence, and build a digital IT infrastructure that supports resilient operations and pervasive experiences.”