A two-part report on government IT spending by BMI-TechKnowledge and Forge Ahead reveals that government IT spend is expected to grow from R2.5 billion in 2002/03 to around R3.3 billion by 2006/07, indicating a compound annual growth rate (CAGR) of 7.2% for the forecast period.
These figures differ from those estimated at as high as R14 billion by other sources, possibly because the first report excludes parastatal, provincial, local and metropolitan government spend and doesn`t take any telecommunications spend into account.
"This is the first time that the market has been sized in this way, which we believe adds more value to both government and private sector IT companies," says Jane Mosebi, MD of Forge Ahead.
The second part of the report covers provincial and metropolitan government IT market sizing. It indicates that their combined spending is expected to reach R3.1 billion by 2006/07 from its current level of approximately R2 billion, reflecting a CAGR of just over 10%.
"The market conditions appear generally positive over the forecast period, as both sectors are driving significant projects," says Philip van Heerden, senior analyst, BMI-T. "The opportunities are diverse and stretch across various spectrums, with the largest projects being GautengOnline, Khanya and the ERP implementation in the City of Cape Town."
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