A fast-growing Western Cape economy has presented the province`s IT industry with excellent growth prospects, provided the sector can demonstrate that it is able to put technology to work for business benefit at end-user organisations.
That`s the word from Phil Savides, regional chief executive of Business Connexion`s Western Cape region. He says strong business confidence and an improving regional economy have prompted companies in the Western Cape to explore how they can use technology to drive business performance and achieve competitive advantage.
Says Savides: "The Western Cape economy is growing at an annual rate of 5.3% and companies in all industries are aggressively targeting even more growth. Regional IT companies have a great opportunity to grow their revenues and build their businesses, provided they are able to elevate themselves from technical specialists into consultants who can help their clients align business and technology for competitive advantage."
However, most IT companies in the region are still offering technology-based products and solutions in isolation of the business and have not yet recognised how to integrate IT into the business architecture, says Savides. Since most systems integrators in the Western Cape are still transforming themselves into business consultants, they do not have the business-related IT skills that their clients are looking for.
"While there are enough ICT professionals in the Western Cape with specialist technical skills, the region suffers from a shortage of the new breed of multi-skilled ICT professionals with the skills to introduce emerging business-enabling technologies, eg wireless, mobile, virtual working environments," adds Savides. "As a result, the regional IT industry currently isn`t fully equipped to show clients how technology can enable their business and delivery to customers."
There is scope for the regional IT industry to build its credibility as a business enabler and win the confidence of Western Cape businesses. However, IT companies need to show they understand the importance of matching the business focus with the technology focus. Getting this right will mean transcending the IT industry`s old approach of selling products and services into clients in isolation of the business, says Savides.
He continues: "A number of Gauteng-based IT companies have raised their game and are engaging with their clients as business enablers. The IT companies in the Western Cape who manage to emulate this approach will become the market leaders and the preferred technology partners for the large organisations in the region.
"However, it is not only the IT companies that are to blame," concludes Savides. "Most IT managers at clients do not allow their suppliers to act as the trusted business partners they could be, thereby encouraging the technology supplier behaviour."
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