A survey conducted in the Western Cape found the biggest challenge facing the IT and telecommunication industry is the cost of bandwidth and lack of experienced IT workers.
The study, undertaken by developmental institution, Cape IT Iniciative (CITI), and Wesgro, concluded that the IT industry could grow further if the skills shortage problem was addressed.
The Western Cape`s main drive in the IT industry is software and service development, often on the back of the successful insurance and retail industries.
The questionnaire and follow-up interviews with 250 IT and telecommunications companies in the Western Cape found that the province`s climatic stability is the biggest draw for organisations.
"We have no lightning here, which makes the region ideal for the IT industry to set up office. Another factor is the high level of education in the region," says CITI executive director Peter Framton.
The survey also established that the Western Cape has many international companies in the area. Framton says European companies, in particular, are taking advantage of the favourable exchange rate to set up their businesses and sell products to Europe.
"Not only are companies earning pounds and spending rands, but the region has a good telecommunication infrastructure and the same time zone as Europe."
Big name network provider companies like UUNet, The Internet Solution, M-Web and World Online all have their head offices in the region. Together, these companies command 80% of the home network provider market.
Framton notes that although the IT industry in the Western Cape is not the biggest, it is vibrant, creative and growing.
"The area sees a great deal of companies working together. And this is where smaller size companies have an advantage. The new economy is becoming a much more networked economy."
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