South Africa will spend $26 billion on Information Technology in 2020. This figure is 2.5% higher than the amount spent in 2019 and was predicted by the International Data Corporation IDC in Johannesburg, South Africa.
Information technology has grown tremendously in the world. In Africa, the sector has developed considerably, though it still encounters diverse challenges like inadequate infrastructure, low literacy level, lack of investment capital amidst others.
However, few African countries have overcome these hurdles and are thriving in the Information Technology sector.
South Africa is one of the countries embracing technology in Africa. The country spent $5billion on Information Technology in 2019, a 3.9% increase from the amount spent in 2018. This figure is expected to increase by 2.5% in 2020.
The Associate Vice President, International Data Corporation IDC South Africa, Mark Walker, also noted that software and IT services would reach $8.2 billion in 2020. This will be a 4.2% increase from the amount spent the previous week.
Also, Infrastructure spendings (like server storage and enterprise-level networks) will grow at a 3.3% rate in 2020 and amounts to $880million within this period.
Meanwhile, Investments in Infrastructure-as-a-Service (IaaS) will also reach $204 million, having grown at a compound rate CAGR of 25% over the past five years.
The Group Vice President and Managing Director of IDC Middle East, Turkey, and Africa -Jyoti Lalchandani also corroborates the prediction. He noted that the digital economy is at a critical point where there is a need for technology suppliers to engage with new buyers and connect tech with business goals.
It is imperative to state that about half of the world’s GDP will come from products and services offered by the digitally inclined organization. Thus, there is a need for organizations to define their roles in the digital economy and actively address new customer requirements around data usage and personalization.
Also, organizations must develop new capabilities around digital innovation, work, and Artificial intelligence to provide resilient digital IT infrastructure that supports customer experiences.