The International Data Corporation (IDC) outlined 10 predictions of what to expect in the ICT space in 2014, at a press briefing in Sandton, this morning.
Speaking at the event, Mark Walker, director of insights and vertical industries at the IDC for Middle East, Turkey and Africa, outlined what the market research and advisory firm believes will be the key trends for the coming year.
According to him, Africa will remain a key ICT investment destination in 2014, but the realities of doing business on the continent will also be realised in the year to come. ICT spend is expected to grow by 6% in the region, according to IDC research.
"Africa has gotten real. Suppliers need to be more relevant and focused in the year to come," he said, adding that what vendors deliver in international markets now needs to become the standard level of service they offer to key players in Africa.
In line with this, Walker continued that there will be an expansion in channels and solutions, especially in the third platform space, with many African CIOs already deploying complex third platform technologies in their organisations. He noted there will be a strong drive for more developers in 2014; leading on to the second prediction, which is centred on skills in the region.
A recent IDC survey revealed that roughly 57% of CIOs believe staffing issues and recruitment will be the main IT challenge for African businesses in 2014, and in years to come. "A lack of available skills is killing innovation in Africa," Walker said.
Skilling up
Lise Hagen, research manager for software and IT services at IDC, agrees, noting that in 2014, skills development will be a focus area. She commented that improved training and skills is increasingly being linked with discussions about return on investment (ROI). There is also a call for local relevance as part of this training drive, she added. "Given the hunger for innovation, there is a combined, concerted effort to address skills issues in the region."
Another prediction is that innovation will continue to be the name of the game in the region, with many African CIOs keen to adopt technologies like cloud and enterprise mobility. Africa is no longer a region that is "always lagging behind", said Spiwe Chireka, program manager for telecoms at IDC. Chireka did stress, however, that each country in Africa has its own set of problems, with local African innovation essential in order to meet local needs.
The fourth prediction is that government's drive towards a sustainable ICT sector will shift into high gear. "There will be a lot more emphasis on ICT as an economic enabler in 2014. And a creator of jobs," said Walker, adding this will lead to the promotion and growth of small and medium enterprises (SME) in the region. For Walker, the fact that there is still no concrete ICT policy in SA will be an inhibitor, locally. In line with this, the IDC believes government will continue to encourage intra-African trade in 2014, with an increased emphasis on geographic and ICT service expansion, and technology allowing for the shrinking of time and space between countries on the continent, Walker said.
All change
Coming in at number five, the IDC predicts a continued "hustle and bustle" in ICT will be experienced in Africa in the coming year. This is about convergence, the promotion of alternative business models, and the increased adoption of new technologies to do everyday tasks, like using Instagram to sell a goat, said Hagen, as an example. And this change in business models means vendors cannot continue to just pay lip service to the mobile wave, particularly in Africa, she stressed. Private cloud, public cloud and data centres will become bigger investment priorities in 2014, Hagen added, pointing out that the public cloud will have a significant impact on the SME space in the next 12 months.
Prediction six is centred on infrastructure and connectivity in Africa. The IDC forecasts that bandwidth is done, citing terrestrial networks as the connectivity option of the future. As third platform technologies become more and more prevalent, enterprise-grade infrastructure and connectivity is essential, Chireka said. She called on telcos to move with the times by offering solutions and services with enterprises in mind. There is traditionally a strong degree of competition between telcos and IT service providers, but the IDC predicts these two groups will be collaborating much more in 2014.
The demand for locally-produced, relevant, digital content will promote the growth of the local digital media industry, according to the IDC's seventh prediction. At the moment, the number of smartphones on the continent is growing and the level of connectivity in the region is sufficient enough to support this type of digital content. "The game is set for digital content and we predict a surge in this type of content in 2014," said Chireka. She believes service providers will play a significant role in the digital content creation drive in Africa throughout 2014.
According to the IDC's next prediction, governance, risk and compliance (GRC) will drive adoption of data analytics in the energy, banking and telco sectors and in government. Some 65% of African CIOs agree GRC requirements, and a need for greater transparency, will drive investment in big data and analytics in 2014 and beyond. "Big businesses can't trade if they are not compliant," noted Walker. He went on to say data analytics will serve to improve efficiency and regulation in Africa, while also reducing corruption.
Citizen-focused electronic service delivery initiatives are expected to come to the fore in 2014, with IDC forecasting this will accelerate government ICT investment. Governments are taking advantage of mobile, data centre and Internet-based platforms to speed up service delivery. Smartphones and tablets are expected to become another contact point between citizens and government institutions, which improves communication and transparency. The only thing that will hamper these initiatives is a lack of standards, stressed Walker. "This service delivery method will certainly gain a lot of momentum in areas that have the right ICT policies in place," he said.
As connectivity grows, there will always be an increase in security concerns, which is the IDC's final prediction. The challenge for African CIOs is to prioritise investment in security. Already a priority in 2013, in SA 61% of CIOs admitted to investing in advanced security solutions this year, compared to 58% in the rest of Africa. "As opportunities increase, dangers increase. An issue like security cannot be addressed in isolation," said Hagen, adding that government, business and vendors need to work together to curb potential threats.
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