Although there are still a few obstacles to the local IT industry joining the upswing in IT confidence elsewhere in the world, there are also solutions and opportunities, say industry leaders.
Most speakers at ITWeb`s IT Confidence Conference at Gallagher Estate in Midrand yesterday said IT confidence had begun a cautious upswing towards the end of last year. They agreed that the outlook for 2004 is good, providing the local IT industry stays flexible, adjusts to rapid changes in the market and survives ever-decreasing margins.
In addition to flexibility and agility, many speakers highlighted the need for a shift in focus from technology to customers` business needs. "Distribution is no longer about good relationships with suppliers," said Derek Wilcocks, executive director of strategy at Dimension Data. "IT and business skills are becoming increasingly important."
"IT vendors need to understand customer businesses," said Peter Watt, Comparex Africa CEO. "Vendors need to demonstrate what IT can do to improve business."
He said only by delivering real business value could the industry grow IT confidence. Watt advised the IT industry to shift the focus from upfront rand cost to meeting clients` business needs and long-term business benefit. "The emphasis needs to be on information instead of technology," he said.
Several speakers suggested the IT industry fall in line with world trends towards outsourcing, and look to the successes of other industries for ideas on how to build and sustain confidence, take cognisance of the changes, and reposition business models accordingly.
Wilcocks identified the lack of certainty around black economic empowerment, the lack of clarity about the rules of engagement with government through the State IT Agency, and delayed convergence in the telecommunications sector as inhibitors to confidence growth in local IT when compared with the rest of the world.
Watt agreed that in terms of IT confidence in SA, transformation in employment equity and procurement was imperative. He urged the industry to embrace transformation as soon as possible and not to wait for legislation to be formulated before taking action.
Mark Walker, BMI-TechKnowledge director, was one of the speakers who was upbeat about the future prospects of the local IT industry, pointing out that although SA accounts for only 0.54% of global IT revenues, it accounts for 27% of the Middle East and Africa IT revenues.
Walker acknowledged that the fluctuating exchange rate between the rand and the dollar was another factor influencing IT confidence, saying it had a mixed impact last year. However, he said the IT industry should stop blaming external factors for its fortunes and find ways of reducing the impact of these factors.
The consensus seems to be that 2004 will see a recovery in IT confidence, with many opportunities in the market, if companies play their cards right and involve customers more closely in IT planning with business needs guiding the process.
In the words of conference chairman Brian Rainier, Brainier Capital MD, the outlook for 2004 and beyond is one of "cautious optimism".
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