South Africa IT Services 2004-2008 Forecast and 2003 Vendor Shares

This IDC study presents the IT services industry in South Africa and forecasts expenditure on IT services through 2008. The study contains market size, vendor market shares, and forecasts for thirteen foundation market categories.

The study answers the following questions:

What are IDC's predictions for spending on IT services and what are the assumptions for forecast numbers, and what impact will these have on the market forecasts? What are the new trends in IT services delivery, such as outsourcing and business services? Who are the market leaders based on services revenue and what are their strengths, weaknesses, and strategies for the future?

"Spending on IT services will continue to grow in South Africa for two fundamental reasons: firstly, services spend is mostly annuity-based expenditure and as such increases from the previous year's spend baseline and not from a zero baseline. Secondly, as the SA IT market matures and the installed base of systems expands, the associated services costs will increase. This situation is counter-cyclical, as in the "good" years spending increases on the installation of new systems. In the "bad" years, services expenditure increases on the maintenance of "creaking" infrastructure." – Natalie Bryden, Senior Analyst, IDC South Africa