An expected reduction in IT spending by Transnet is expected to have an impact on overall growth in IT expenditure by state-owned enterprises.
According to a report by research firm BMI-TechKnowledge, Transnet is the largest consumer of IT products and services in the state-owned enterprise space, accounting for about 39% of all IT spending in the sector.
The report, authored by BMI-T senior analyst Natalie Bryden, says Transnet is expected to reduce its IT expenditure between this year and 2008.
Last year, state-owned enterprises spent R3.15 billion on IT, representing about 6.5% of overall spend in SA, according to the report.
Bryden says services (R1.4 billion) accounted for the bulk of IT spending, followed by hardware (R975 million) and software (R722 million).
"The current restructuring and cost-cutting initiatives under way at state-owned enterprises has led to a reduction in IT expenditure," Bryden says.
"Enterprises such as the SA Post Office and Transnet have undergone radical change in their approach to IT over the past few years as CIOs have sought to renegotiate supplier contracts, consolidate and standardise IT infrastructure and, in so doing, saving their organisations millions."
Bryden says BMI-T is optimistic about a recovery in IT spending by state-owned enterprises beyond 2008.
Government investment on key transport networks is expected to increase dramatically, while investment in residential housing, community services, water and electricity has also been prioritised.
"The government is expected to invest R372 billion in infrastructure in terms of its Accelerated and Shared Growth Initiative of SA over the next three years, and any infrastructure expansion will require an extended IT infrastructure," Bryden adds.
The report has also found that several organisations, including the SA Post Office, South African Broadcasting Corporation (SABC) and South African Airways, are using newer technologies to generate revenue.
As an example, it cites the case of the SABC, which is making extensive use of the mobile channel to generate revenue through competitions and content distribution.
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