target audience: TECH SUPPLIER  Publication date: Jun 2023 - Document type: Market Forecast - Doc  Document number: # META50170123

South Africa IT Services Market Forecast, 2022–2027

By:  Jonathan Tullett Loading


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This IDC study gives an overview of the IT services industry in South Africa in 2022 and forecasts IT services expenditure through 2027. It illustrates market size and distribution by foundation market and vertical market. The study also presents forecasts for 12 foundation market categories.

The study answers the following questions:

  • What are IDC's predictions for IT services spending in South Africa? What are the assumptions behind the forecast numbers?
  • What impact will digital transformation initiatives have on the market?
  • What are the latest trends in IT services delivery in South Africa (e.g., hybrid cloud, DX, AI, and automation)?
  • What are the concerns and preferences of end users in South Africa regarding IT services procurement?

"Improving organizational efficiency is the topmost digital priority for South African organizations as they weather a challenging economic climate and country-wide energy crisis. They are engaging with services providers to streamline their infrastructure and manage their exposure to risk as effectively as possible. Cloud and cloud-related services are top of mind, with an increasing share of organizations looking to move beyond lift-and-shift deployment and application modernization; indeed, many organizations are now seeking services partners with integration and automation capabilities to help them achieve their short-term cost management and efficiency goals, while also aligning with their longer-term digital transformation goals. A preference for local solutions is emerging, with CIOs seeking partners that are investing in local skills, data sovereignty, and compliance. The ability of local services providers to execute in the current conditions will be tested as they deal with international competition, offshore services (including cloud), and market limitations; those providers that are able to differentiate and address customers' most pressing concerns will be well placed for future growth." — Jonathan Tullett, associate research director, services, IDC Sub-Saharan Africa


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