The IT Industry: This report focuses on the South African Information Technology industry which designs, manufactures, supplies, implements and supports the technologies that enable the storage, retrieval and transmission of information. The local IT industry is growing at a CAGR of 6% and employs almost 200,000 people. It contributes approximately 7% to the country’s GDP and IT spend for 2015 is projected at R143bn. The sector includes South African companies Dimension Data, Gijima Group Ltd and Business Connexion, which have become global leaders in the IT sector.; Developments in the sector: Just as the industry offerings are dominated by continuous new developments, innovations and technologies, so the sector itself is characterised by mergers, acquisitions, vendor partnerships and licensing agreements in order to increase the portfolio of services offered, strengthen presence in existing markets and enable expansion into new markets. Although there are numerous challenges, including electricity supply constraints, a lack of skills, and the slow implementation of government initiatives such as the ICT policy, the broadband roll-out and digital migration, stakeholders remain optimistic about the prospects for the sector.; Report coverage: The report on the South African Information Technology sector describes the current market, lists corporate actions and other developments within the sector and focuses on factors influencing the success of the industry. The report also profiles 53 South African-based companies, ranging from Microsoft (SA) (Pty) Ltd which offers a back-up service to the American holding company, providing a service that includes the marketing of Microsoft computer products as well as providing technical support and training for end-users, to Dexani cc based in Centurion, which employs seven people involved in IT services including the retail of hardware and software as well as networking design and implementation for the corporate sector.
Table Of Contents
The IT Industry in South Africa 2015 1. INTRODUCTION 1 2. DESCRIPTION OF THE INDUSTRY 1 2.1. Industry Value Chain 3 2.2. Geographic Position 3 3. SIZE OF THE INDUSTRY 3 4. STATE OF THE INDUSTRY 9 4.1. Local 9 4.2. Corporate Actions 16 4.2.1. Regulations 22 4.2.2. Enterprise Development and Social Economic Development 24 4.3. Continental 27 4.4. International 30 5. INFLUENCING FACTORS 33 5.1. Economic Environment 33 5.2. Electricity Supply Constraints 34 5.3. Government Initiatives 35 5.4. âSmart Provincesâ and âSmart Citiesâ 36 5.5. Strong IT Investment 40 5.6. Innovation 41 5.7. Labour 42 5.8. Cybercrime 46 5.9. Environmental Concerns 47 5.10. Cyclicality 48 6. COMPETITION 49 6.1. Technology, Research and Development (RandD) and Innovation 51 7. SWOT ANALYSIS 53 8. OUTLOOK 54 9. INDUSTRY ASSOCIATIONS 54 10. REFERENCES 55 10.1. Publications 55 10.2. Websites 56 APPENDIX 1 58 The Media and ICT Seta Priority Skills List (February 2015) 58 ORGANOGRAM 60 COMPANY PROFILES 68 ABSA BANK LTD 68 ACCENTURE (SOUTH AFRICA) (PTY) LTD 74 ACER AFRICA (PTY) LTD 78 ACI GLOBAL LTD 80 ADAPTIT HOLDINGS LTD 82 ADCORP PROFESSIONAL SERVICES LTD 85 ALLIED ELECTRONICS CORPORATION LTD 87 ALLPAY CONSOLIDATED INVESTMENT HOLDINGS (PTY) LTD 91 ATTACHMATE GROUP SOUTH AFRICA (PTY) LTD 93 BARONE BUDGE AND DOMINICK (PTY) LTD 95 BIDVEST OFFICE (PTY) LTD 97 BLUE LABEL TELECOMS LTD 100 BUSINESS CONNEXION (PTY) LTD 105 CASH CONNECT MANAGEMENT SOLUTIONS (PTY) LTD 111 CASH PAYMASTER SERVICES (PTY) LTD 113 CCI TECHNOLOGY SOLUTIONS (PTY) LTD 115 CEB MAINTENANCE AFRICA (PTY) LTD 117 CHM VUWANI COMPUTER SOLUTIONS (PTY) LTD 119 CISCO SYSTEMS (SOUTH AFRICA) (PTY) LTD 122 DATACENTRIX HOLDINGS LTD 124 DATATEC LTD 128 DELL COMPUTER (PTY) LTD 133 DELOITTE and TOUCHE SOUTH AFRICA 135 DIMENSION DATA (PTY) LTD 139 DIRECT TRANSACT (PTY) LTD 143 DOCU-FILE (PTY) LTD 146 DOCUMENT WAREHOUSE (PTY) LTD (THE) 148 EASYPAY (PTY) LTD 151 ECENTRIC PAYMENT SYSTEMS (PTY) LTD 153 ENTERPRISE ELECTRONIC COMMERCE (SA) (PTY) LTD 155 EOH HOLDINGS LTD 157 EOH MTHOMBO (PTY) LTD 162 ERNST and YOUNG ADVISORY SERVICES LTD 164 FACE TECHNOLOGIES (PTY) LTD 166 FARANANI IT SERVICES (PTY) LTD 168 FLASH MOBILE VENDING (PTY) LTD 170 FUJITSU SERVICES CORE (PTY) LTD 173 GIJIMA GROUP LTD 175 HETZNER (PTY) LTD 180 HEWLETT-PACKARD SOUTH AFRICA (PTY) LTD 182 IBM SOUTH AFRICA (PTY) LTD 184 INFOVAULT (PTY) LTD 186 INTEGR8 IT (PTY) LTD 188 INTEL SOUTH AFRICA CORPORATION 190 IT DYNAMICS (PTY) LTD 192 ITEC DISTRIBUTION (PTY) LTD 194 KPMG SERVICES (PTY) LTD 196 LIGHTSTONE AUTO (PTY) LTD 199 LIGHTSTONE CONSUMER (PTY) LTD 201 MARINE DATA SOLUTIONS (PTY) LTD 202 MCKINSEY INC 204 METROFILE HOLDINGS LTD 206 MICROSOFT (SA) (PTY) LTD 209 MORVEST GROUP LTD 212 MUSTEK LTD 215 OLTIO (PTY) LTD 219 ORACLE CORPORATION (SOUTH AFRICA) (PTY) LTD 221 PARACON SA (PTY) LTD 223 PAYCORP CORPORATE SERVICES (PTY) LTD 225 PAYCORP GROUP (PTY) LTD 227 PINNACLE HOLDINGS LTD 230 PRICEWATERHOUSECOOPERS EXORDIA (PTY) LTD 233 PRISM PAYMENT TECHNOLOGIES (PTY) LTD 235 RICOH SOUTH AFRICA (PTY) LTD 237 SAGE ERP AFRICA (PTY) LTD 239 SAS INSTITUTE (PTY) LTD 241 SETCOM (PTY) LTD 243 SGX LOGISTICS (PTY) LTD 245 SIEMENS (PTY) LTD 247 SOUTH AFRICAN BANKERS SERVICES COMPANY (PTY) LTD 251 SPARK ATM SYSTEMS (PTY) LTD 253 STATE INFORMATION TECHNOLOGY AGENCY SOC LTD 255 STELLAR CAPITAL PARTNERS LTD 259 SYMANTEC SA (PTY) LTD 262 SYSTEMS APPLICATIONS PRODUCTS (SOUTH AFRICA) (PTY) LTD 264 T-SYSTEMS SOUTH AFRICA (PTY) LTD 267 TPG AFRICA (PTY) LTD 269 TRANSACTION CONTROL TECHNOLOGIES (SA) (PTY) LTD 271 TRUSTLINK (PTY) LTD 273 TUTUKA SOFTWARE (PTY) LTD 275 UCS SOLUTIONS (PTY) LTD 277 UNISON COMMUNICATIONS (PTY) LTD 280 VERIFONE AFRICA (PTY) LTD 282 VSOLUTION (PTY) LTD 284 WIZZIT PAYMENTS (PTY) LTD 286