In respect of market size the South African information technology sector grew by 10,9% to R42,3-billion in 2002 and is expected to maintain a compound annual growth rate of 7,7% from 2002 to 2007, ICT market analysts BMI-TechKnowledge (BMI-T) say.
In its South African IT Market Analysis and Forecast 2002-2007 report, released on Tuesday, BMI-T said research has yielded a number of important observations, including the fact that the fluctuations in the rand/dollar exchange rate between 2001 and 2003 have had a positive and negative impact on the IT market.
Dawid de Koker, Divisional Manager at BMI-T, says that the strengthening of the rand has made imported hardware and software more affordable, giving buyers more freedom with their budget.
However on the negative side, the lower rand prices, particularly in respect of hardware, is set to outweigh the stimulatory effects of greater affordability. This would result in a lower overall IT market growth when measured in rand terms, he said.
BMI-T also believes that the South African IT market will continue to shift focus from basic hardware support to software and services. Although the traditional support services, such as hardware and software support, will not disappear, their delivery models will change fundamentally. – I-Net Bridge