Though the sub-Saharan region has enjoyed GDP growth, as well as massive increases in foreign direct investment, over the past three years, the pressure to meet demand has not been supported by an equal investment in IT.
So says Andy Monshaw, senior VP at IBM, who points out that the region has enjoyed a GDP growth rate of more than 5%. This is coupled with foreign direct investment growth forecast at $70 billion to $85 billion in 2013, and $75 billion to $100 billion in 2014.
Thus, he believes the African continent is undoubtedly ridding itself of its previous economic status as a 'limping' continent.
However, according to IBM, the pressure to meet demand has not been supported by an equal investment in IT, which is eroding the competitive advantage of companies operating within the region - putting further growth at risk.
"African companies have a firm grip of the challenges and opportunities related to the changing competitive landscape both regionally and on the continent," says Monshaw.
"Research has shown that 70% of IT-related budgets in Africa is used as operational expenditure; now what is needed is innovation and efficiency in line with the positive growth rate."
He also explains that IT budgets are under pressure to do more, and as a consequence, IT buyers' priorities tend to revolve around cost reduction, business alignment and risk management.
IT projects worldwide are 25% over budget and 25% behind schedule, according to a commissioned study conducted by Forrester Consulting for IBM, he adds.
"In the current economic climate, the financial pressures placed on organisations and the need to respond with speed to shifts in market conditions has created irrevocable change for IT and business alike. As data grows more and more complex, the demand for a simpler approach to managing IT is on the rise."
In Africa, operational efficiency, cost saving and innovation rank among the top strategic priorities for the next 12 months, he notes, adding that in alignment with their global counterparts, IT is no longer considered by African businesses as merely an auxiliary business service used to support business operations.
"IT is being seen more and more as the cornerstone of the modern business enabling competitive differentiation."
Monshaw also believes the technology systems within organisations and the management of these systems have become highly complex. He adds that supporting increasing numbers of resources, particularly in data centres, has become cumbersome for the average business.
"Since existing IT approaches to business lead to inherent inefficiencies in resource utilisation and management, organisations are increasingly looking to adopt technologies such as virtualisation, cloud, converged infrastructure and integrated offerings. This is one solution.
"Another is to remove all that complexity and simplify the IT experience fundamentally with systems that are pre-integrated. In Africa, many companies are still in their build-out phases. They have the opportunity to leapfrog traditional IT by choosing IT systems that provide a single unified management layer and discard the 'component' purchase mindset to IT. This approach is all about getting to market faster and staying in the market with more flexibility," he says.
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