ICT Investment Trends in South Africa: Economic appreciation and digital transformation drive ICT investments

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​ICT Investment Trends in South Africa: Economic appreciation and digital transformation drive ICT investments

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Summary
"ICT Investment Trends in South Africa", presents the findings from a survey of 61 South African enterprises regarding their Information & Communications Technology (ICT) investment trends. The survey investigates how South African enterprises currently allocate their ICT budgets across the core areas of enterprise ICT expenditure: hardware, software, IT services, communications, and consulting.
The report illustrates the core technologies that enterprises are investing in, including enterprise applications, security products, IoT, and cloud computing. The survey also highlights the approach to purchasing technology adopted by enterprises in South Africa. Through GlobalData's survey, the report aims to provide a better insight to ICT vendors and service providers when pitching their solutions to enterprises in South Africa.
The South African economy has moderately increased from 0.7% in Q4 2016 to 1% in Q1 2017 due to the increase in private consumption and exports.
South African enterprises are investing in core technologies (software, hardware, and services) with software attracting the highest proportion of ICT budgets in both 2016 and 2017.

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In particular, it provides an in-depth analysis of the following -
- How ICT budgets are set to change in 2017 in terms of their overall size
- Allocation across the core elements of IT spend, including hardware, software, services, communications, and consulting
- Distribution of ICT money in areas such as the networks, applications, service desk, and data centers
- Which ICT functions South African enterprises are interested in outsourcing
- South African enterprises investment priorities based on their budget allocations across core technology categories such as enterprise applications, security products, IoT, and cloud computing
- Factors that are influencing South African enterprises investments in each technology category
- How South African enterprises IT budgets are currently allocated across various segments within a technology category
- South African enterprises distribution of their ICT budget across various segments within a technology category
- Vendor satisfaction ratings for various core and advanced technology categories
- Insight into South African enterprises preferred buying approaches
- Business objectives that South African enterprises are looking to achieve through their IT investment strategies
- Factors that are influencing South African enterprises decisions to select an ICT provider

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Scope
- Among the various cloud computing solutions, South African enterprises are making the largest investment in SaaS. Furthermore, public cloud is the most popular mode of cloud computing implementation among South African enterprises.
- With regards to technology priorities, South African enterprises are keen to invest in enterprise applications, security products, IoT, and cloud computing as increased percentage of respondents are planning to spend on these domains in the coming two years.
- In terms of the selection of ICT vendors, the criteria of industrial expertise and the capability to provide leading-edge technology are playing significant roles.
Reasons to buy
- Understand how the South African enterprises ICT landscape is set to change in 2017 to prioritize your target market
- Comprehend how ICT money are being allocated by South African enterprises in specific verticals and size bands to improve your market penetration
- Make effective business decisions by recognizing the opportunities within each of the core areas of ICT spend (hardware, software, IT services, telecommunications, and consulting)
- Realign your sales initiatives by understanding the current strategic objectives of South African enterprises
- Enhance your market segmentation with the included, detailed breakdown of opportunities within selected technology categories (enterprise applications, security products, IoT, and cloud computing)
- Prioritize your focus areas by understanding which factors are influencing South African enterprises decisions when selecting an ICT provider
- Understand the changes in customers priorities and identify the business objectives that South African enterprises are looking to achieve through their ICT investment strategies

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Table of Contents
Key findings
Key implications for vendors
Executive summary
Survey demographics
ICT budget changes
ICT budget allocation by core technology area
Hardware budget breakdown
Software budget breakdown
Third party IT services expenditure
Communications expenditure
Cloud computing budget
ICT budget allocation by function
Outsourced IT functions
ICT investment priorities and vendor satisfaction
Enterprise applications
Security products
Internet of Things (IoT)
Cloud computing
Business objectives influencing IT investment strategy
ICT provider selection
Key decision makers for purchasing technology

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