South Africa IT Services Market Forecast, 2023–2028
This IDC study gives an overview of the IT services industry in South Africa in 2023 and forecasts IT services expenditure through 2028. It illustrates market size and distribution by foundation market and vertical market. The study also presents forecasts for 12 foundation market categories.The study answers the following questions:What are IDC's predictions on IT services spending in South Africa? What are the assumptions behind the forecast numbers? What impact will digital transformation initiatives have on the market?What are the latest trends in IT services delivery in South Africa (e.g., hybrid cloud, DX, AI, and automation)?What are the concerns and preferences of end users in South Africa regarding IT services procurement?"Business transformation and risk reduction are key drivers for South African enterprise customers engaging with IT services. Strong interest in AI will create new opportunities, while a rebalancing of cloud priorities will also open doors for migration, optimization, and modernization engagements. Key themes to watch for the future include automation and process improvement, cybersecurity and business risk, intelligence, and governance. Table-stakes will include AI capabilities, hybrid cloud, automation, and local governance." — Jonathan Tullett, associate research director, services, IDC Sub-Saharan Africa
Please Note: Extended description available upon request.
IDC Market Forecast Figure
Executive Summary
Advice for Technology Suppliers
Evolve KPIs and SLA Metrics to Align with Business Outcomes
Emphasize Integration and Automation
Invest in AI Capabilities and Target AI Success Stories
Rebalance Hybrid Cloud Capabilities
Market Forecast
South Africa IT Services Spending Overview by IDC Primary Market
Managed Services
IDC Analysis of the Managed Services Primary Market
Project-Oriented Services
IDC Analysis of the Project-Oriented Services Primary Market
Support Services
IDC Analysis of the Support Services Primary Market
Overview of South African IT Services Spending by Vertical Markets
Public Sector
Retail and Services
Financial Services
Infrastructure and Energy
Manufacturing and Resources
Market Context
Drivers and Inhibitors
Drivers
Spending on New Technologies
Modernization and Efficiency
Skills Centralization
Inhibitors
Electricity Shortages
Currency Volatility
Significant Market Developments
Uneasy Economic Stability
Datacenter, Local Cloud, and Connectivity Expansion