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South Africa Information Technology Report Q2 2016

South Africa Information Technology Report Q2 2016

BMI View: We continue to hold a positive outlook for the South African IT market in 2016 and beyond,over the course of our forecast period out to 2020. Nevertheless, the primary concern is the heavydepreciation of the South African rand against the US dollar. We believe rand depreciation will weigh-in onthe market over the course of our forecast period, as was the case from 2013-2015. The outlook for 2016 isless challenging as economic conditions begin to ease, and over the medium term vendors will be able totarget specific growth opportunities as consumers and businesses strengthen. A strong driver of growth willbe government spending via service expansion and modernisation efforts. There is also growing interest inIT solutions by SMEs looking to explore new sales and marketing channels as well as to improve operationsefficiencies, offering new opportunities.

Latest Updates & Industry Developments

Computer Hardware Sales: ZAR28.8bn in 2016 to ZAR35.7bn in 2020, a CAGR of 5.6% in localcurrency terms. Rand depreciation represents downside risk by squeezing household purchasing power,resulting in deferred purchases and substitution for cheaper models.

Software Sales: ZAR18.0bn in 2016 to ZAR26.0bn in 2020, a CAGR of 9.2% in local currency terms.We believe the uptake of cloud-based software, which is less susceptible to piracy and through moreflexible pricing will deepen the market to SMEs, will drive growth in software sales over the mediumterm.

IT Services Sales: ZAR31.2bn in 2016 to ZAR44.4bn in 2020, a CAGR of 9.4% in local currency terms.

IT services will be the outperforming IT market segment, with development of the business processoutsourcing market and public sector modernisation spending key drivers.

BMI Industry View
Industry Forecast
Recent Developments
Structural Trends
Table: IT Industry - Historical Data And Forecasts (South Africa 2013-2020)
Industry Risk Reward Index
Middle East And Africa Risk/Reward Index
Table: IT RRI Scores By Region
Table: MEA IT Risk/Reward Index - Q216
Market Overview
Cloud Computing
Table: Cloud Vendor Developments
IT Services
Industry Trends And Developments
Regulatory Development
Table: SITA
Table: National Broadband Policy Targets
Competitive Landscape
Key Players
International Companies
Table: Hewlett-Packard
Local Companies
Table: Datatec
Table: Dimension Data
Table: EOH
Table: T-Systems South Africa
Regional Overview
Demographic Forecast
Demographic Outlook
Table: Population Headline Indicators (South Africa 1990-2025)
Table: Key Population Ratios (South Africa 1990-2025)
Table: Urban/Rural Population & Life Expectancy (South Africa 1990-2025)
Table: Population By Age Group (South Africa 1990-2025)
Table: Population By Age Group % (South Africa 1990-2025)
Industry Forecast Methodology
Risk/Reward Index Methodology
Table: IT Risk/Reward Index Indicators
Table: Weighting Of Components

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