TECH SUPPLIER Dec 2020 - Technology Segment - Doc # META45899020

South African IT Services 2019 Market Analysis and 2020–2024 Forecast

By: Jonathan TullettResearch Manager

Abstract

This IDC Technology Segment study assesses South Africa's 2019 IT services market and forecasts the market's expenditure through 2024. The study includes market size and distribution analyses by vertical market and IDC's 12 foundation market categories.

The study addresses the following questions:

  • What are IDC's predictions for spending on IT services in South Africa? What are the assumptions behind the forecasts?
  • What are the concerns and preferences of South African end users in relation to IT services procurement?
  • What are the trends in IT services in South Africa? What does the future hold for managed services and offshoring, hosting, and cloud services?

"Revenues from IT services declined in 2019 as companies sought smaller and more agile managed services contracts. Providers had to make significant changes to their services portfolios and delivery approaches. The economic lockdowns associated with COVID-19 compelled organizations to realign their IT resources and focus on maintaining continuity. The adoption of cloud services, supported by the establishment of in-country datacenters by leading hyperscale providers, accelerated in 2019. In 2020 and beyond, IDC expects IT service realignments to continue as customers digitally transform and achieve greater agility to deal with the COVID-19 outbreak and the rapidly evolving global economy." — Senior Research Manager Jonathan Tullett, IT Services, IDC Sub-Saharan Africa


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