Overall IT spending in SA is expected to cross the $13 billion (R143 billion) mark in 2015, according to the latest figures released today by International Data Corporation (IDC).
The research firm says consumer, finance and government verticals will lead the charge, with the former expected to account for $3.12 billion (R34.3 billion) in IT spending next year. However, growth in the consumer vertical will stagnate over the coming years, with spending dipping slightly to $3.10 billion (R34.1 billion) in 2018.
Jebin George, a senior research analyst at IDC Middle East, Africa and Turkey, says although SA's economic situation remains fragile owing to electricity shortages and strikes in the mining, manufacturing and utilities sectors, the IT market in the country will "remain buoyant and continue to grow during the next four years".
Upward trajectory
The finance vertical, which includes banking, insurance, and securities and investments, will be the second-biggest in terms of IT spending, with a total expenditure of $1.88 billion (R20 billion). The primary driver for its growth, according to the IDC, will be increased investments in mobility and security.
In a statement released today, the research firm said: "As growth opportunities from traditional channels and business decline, banks in South Africa are shifting their focus to the unbanked, and mobile is the most sought-after channel for serving them due to its already-high and increasing levels of penetration in SA".
Spending in the government sector is forecast to reach $1.63 billion (R17 billion), driven by ongoing automation initiatives as part of the drive to bring government services to online and mobile platforms.
Meanwhile, IT investment in the country's telecommunications vertical is expected to total $1.42 billion (R15 billion). The IDC says telecoms players are also faced with high competition and low growth in their traditional sphere of business, resulting in them foraying into neighbouring fields such as IT services and financial services.
"Telcos are adding cloud computing, data centre, and disaster recovery services to their product and services portfolios, and also targeting the unbanked through payment-related services," the IDC added.
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