ICT Procurement Trends in South Africa – Enterprise ICT Investment Plans to 2013

Publisher Name :
Date:6-Mar-2013
No. of pages: 22

This report presents the findings from a survey of 65 South African enterprises regarding their approach to Information and Communication Technology (ICT) procurement. The survey investigates the way that South African enterprises like to purchase technology, as well as the major IT and business objectives influencing their IT investment strategies.

Introduction and Landscape

Why was the report written?

To highlight the criteria on which South African enterprises select their ICT providers as well as the roles which have influence while making ICT purchasing decisions.

What is the current market landscape and what is changing?

Enterprises in South Africa prefer to procure technologies direct from suppliers and deploy them on-site, although their preference towards hosted services is also gaining momentum.

What are the key drivers behind recent market changes?

South African enterprises’ emphasis on cost cutting and reducing complexity is providing an impetus to adoption of managed and hosted services.

What makes this report unique and essential to read?

Kable Global ICT Intelligence has invested significant resources in order to interview CIOs and IT managers about their ICT Procurement. Very few IT analyst houses will have interviewed 60+ ICT decision makers in the South African market in H2 2012.

Key Features and Benefits

  • Provides insights into South African enterprises’ preferred buying approaches.
  • Comprehend the business objectives that South African enterprises are looking to achieve through their IT investment strategy.
  • Appreciate the IT objectives that South African enterprises are looking to achieve through their IT investment strategy.
  • Understand the factors that are influencing South African enterprises’ decision to select an ICT provider.
  • Understand which organizational roles influence ICT purchasing decisions and signing off budgets.

Key Market Issues

  • Most South African enterprises prefer to buy technologies direct from suppliers and then deploy them on- site rather than using a hosted model, primarily because of the confidentiality of data or legacy systems already in place.
  • In the face of continued economic uncertainty, IT vendors are looking to develop solutions which enable enterprises to achieve operational efficiency and stimulate growth.
  • As South African businesses look to develop long-term relationships with their technology vendors, preference is given to technology vendors with a stable financial background who are capable of providing support and maintenance relating to their technology in the future.
  • CFOs also have a major influence on ICT investment decisions, given their role in controlling enterprise budgets and hence decision making, with an average rating of X on the same scale.
  • With increasing complexity of the ICT environment, South African enterprises are faced with technology management issues.

Key Highlights

  • Overall ICT spending in South Africa is expected to increase in 2013 compared to 2012, mainly due to high spending on hardware and mobile communications.
  • Increasing customer satisfaction and raising efficiency are the main business objective influencing IT investment strategy amongst South African enterprises with the highest rating of X on a scale of 1 to 4.
  • Although a majority (X%) of South African enterprises prefer to deploy their IT solutions on-site, deployment of technologies as a hosted service is also gaining prominence with X% of respondents showing inclination towards this model.
  • South African enterprises rate the CIO/IT department as the most influential authority when making ICT purchasing decisions, with the highest average rating of X on a scale of 1 to 4, followed by the CFO/Finance Director and the CEO.
  • The survey indicates that X% of enterprises in South Africa rate the objective of aligning IT with overall business goals as their top priority.

ICT Procurement Trends in South Africa – Enterprise ICT Investment Plans to 2013

Table of Contents

1 Enterprise ICT investment trends
1.1 Introduction
1.2 Survey demographics
1.3 ICT budget changes
1.4 ICT investment priorities

2 ICT procurement trends
2.1 Introduction
2.2 Purchasing channels
2.3 Business objectives influencing IT investment strategy
2.4 IT objectives influencing IT investment strategy
2.5 ICT provider selection
2.6 Influencers
2.7 Complexity of the ICT infrastructure environment

3 Summary
3.1 South African enterprises' ICT investment strategies revolve around improving efficiency and aligning IT with their overall business goals

4 Appendix
4.1 Definitions
4.2 Further reading
4.3 Contact the authors

List of Tables

Table 1: South African enterprise ICT survey industry breakdown
Table 2: South African enterprise ICT survey breakdown by size band (number of employees)
Table 3: Recent and expected ICT budget changes among South African enterprises
Table 4: South African enterprises' current and future investment priorities across technology categories.
Table 5: South African enterprises' preferred approach to buying technologies
Table 6: Business objectives which influence South African enterprises' IT investment strategy
Table 7: IT objectives which influence South African enterprises' IT investment strategy
Table 8: Factors influencing South African enterprises' decision to choose an ICT provider
Table 9: Influence of organizational roles in making ICT purchasing decisions and signing off budgets
Table 10: Complexity of the ICT infrastructure in South African enterprises

List of Figures

Figure 1: South African enterprise ICT survey industry breakdown
Figure 2: South African enterprise ICT survey breakdown by size band (number of employees)
Figure 3: Recent and expected ICT budget changes among South African enterprises
Figure 4: South African enterprises' current and future investment priorities across technology categories.
Figure 5: South African enterprises' preferred approach to buying technologies
Figure 6: Business objectives which influence South African enterprises' IT investment strategy
Figure 7: IT objectives which influence South African enterprises' IT investment strategy
Figure 8: Factors influencing South African enterprises' decision to choose an ICT provider
Figure 9: Influence of organizational roles in making ICT purchasing decisions and signing off budgets
Figure 10: Complexity of the ICT infrastructure in South African enterprises

  • Challenges in the Tourism Industry in Thailand
    Thailand has always been a popular tourist destination and tourism provides a major boost to the country’s economy. Bangkok, Hua Hin, Krabi, Samui, Phuket and Cha Am are some of the most attractive tourist destinations in the country. In 2012, Thailand had a very high number of arrivals. Even the number of Thai citizens who [...]
  • Future of the US Consumer Electronics Market
    The market for consumer electronics has been growing steadily. Some of the factors that are contributing to the growth in the market are technological advancement, rise in disposable income and increasing demand for new products. During 2012, consumer electronics market in the US demonstrated positive expansion, although the growth rate slowed down considerably following the [...]
  • Overview of the Global Retail Market
    The global retail industry continued to grow despite the difficult economic conditions in the world. In the fiscal year of 2011, sales-weighted, currency-adjusted revenue rose by 5.1% to $4.271 trillion for the world’s top 250 retailers. According to GRDI (Global Retail Development Index), in 2013 Brazil occupied the top spot in retail development. Chile and [...]
  • Bright Future Predicted for the Tourism Industry in Singapore
    Travel and tourism industry in Singapore has been growing at a steady rate and is considered to be a major contributor to the economic growth of the country. In 2012, Singapore’s IVA (International Visitors Arrivals) reached a record high of 14.5 million, with a growth rate of 10.1% year-on-year. In recent years, inbound travel to [...]
  • Potential of Staffing Market in United States
    The staffing industry places individuals into contract, temporary and permanent positions in firms around the world. Major staffing markets include France, Spain, Italy and Japan as well as many emerging markets. Temporary staffing around the world has been growing, but in US temporary market has been flat since 2006. The majority of staffing revenue majorly [...]
  • Diagnostic X-ray Imaging Market worth $4.0 billion by 2020
  • GlobalData estimates that the global diagnostic X-ray imaging market, worth $2.4 billion in 2012, will reach almost $4.0 billion by 2020, increasing at a Compound Annual Growth Rate (CAGR) of 6.7% during the forecast period. Many players are active in …

  • Graft-Versus-Host Disease Market Forecast to 2023
  • Graft-versus-host disease (GVHD) is a common complication of allogeneic hematopoietic stem cell transplantation (HSCT) that occurs when the donated (graft) cells are rejected and attack the host’s cells as foreign. GVHD can progress from mild to severe forms as either …

  • Chronic Lymphocytic Leukemia (CLL) Treatment Market worth $3.3 billion by 2018
  • New Entrants to Boost Chronic Lymphocytic Leukemia Treatment Market Value to $3.3 Billion by 2018, says GlobalData. The introduction of several new drugs will accelerate growth in the Chronic Lymphocytic Leukemia (CLL) treatment market, from $1.4 billion in 2013 to …

  • Global Biosimilars Market to Grow at a CAGR of 8.3%, to reach $262 billion by 2019
  • Lucrative Biosimilars Space to Erode Biologics Market from 2019, says GlobalData The increasing prevalence of biosimilars will have a noticeably negative impact on the biologics market beyond 2019, despite an initial projected Compound Annual Growth Rate (CAGR) of 8.3%, taking …

  • Saudi Pharmaceutical Market worth $5.9 billion by 2020
  • A high burden of chronic diseases, improving regulatory guidelines and the launch of new products will provide the necessary impetus for the growth of the pharmaceutical market in Saudi Arabia The Saudi pharmaceutical market is one of the largest markets …

  • Global and China Optoelectronic Device Industry Report, 2014-2016
    Published: 30-Jul-2014        Price: US $2450 Onwards        Pages: 114
    Optoelectronic device refers to various functional devices made through the electricity-photon conversion effect, widely used in communications, solar energy, industrial laser, LED and other fields. The report mainly focuses on optoelectronic devices for communication applications. In 2013, the worldwide communication optoelectronic device industry registered revenue of USD7.2 billion, up 7.5% on year-on-year basis (an increase of 6 percentage points compared to last year).Global communicati......
  • 2014 Deep Research Report on Global and China Mobile Phone Charger Industry
    Published: 30-Jul-2014        Price: US $2200 Onwards        Pages: 265
    This is a professional and depth research report on Global and China Mobile Phone Charger industry. The report firstly introduced Mobile Phone Charger basic information included Mobile Phone Charger definition classification application industry chain structure industry overview; international market analysis, China domestic market analysis, Macroeconomic environment and economic situation analysis and influence, Mobile Phone Charger industry policy and plan, Mobile Phone Charger product specifi......
  • Taiwan Telecommunications Report Q3 2014
    Published: 30-Jul-2014        Price: US $1295 Onwards        Pages: 93
    BMI View: The Taiwanese telecom market is among the most mature in the region, with 126.8% mobile penetration in 2013 and 84.7% of the market is postpaid. Taiwanese mobile market looks to an exciting year ahead in 2014 as six operators have obtained their 4G licences and are expected to introduce 4G services by end-2014. However, operators face short-term ARPU squeeze from the regulators who have imposed compulsory cuts to mobile termination rates and requirements to provide free peering between......
  • Global Data Center UPS Market 2014-2018
    Published: 30-Jul-2014        Price: US $2500 Onwards        Pages: 74
    A data center UPS is the intermediary interface between power mains and data center equipment. Data center UPS systems provide continuous high-quality electrical power which facilitates efficient functioning of an enterprise network. UPS systems are triggered automatically when the power supply is interrupted between the mains and the equipment. Due to the presence of UPS systems, network administrators are able to restore the system or execute an alternative solution in the data center for the ......
  • Ukraine Telecommunications Report Q3 2014
    Published: 30-Jul-2014        Price: US $1295 Onwards        Pages: 119
    BMI View: The ongoing crisis in Ukraine will likely filter down to the telecoms market as well, after operators reported damaged networks and instances of network blackouts, causing them to temporarily close retail outlets in Kiev. Crimea has been annexed by Russia and there is a risk that the likes of Ukrtelecom may not be able to operate in the region as it reported damage on its network in the region at the beginning of 2014. We have downgraded our broadband and internet forecasts as a result......
  • Global Grid Optimization Solutions Market 2014-2018
    Published: 30-Jul-2014        Price: US $2500 Onwards        Pages: 80
    Grid optimization involves a wide array of prospective advances that gives utilities and grid operators digital control of the power delivery network. Although the concept of network optimization is simple, the practice is complex because it involves multiple variables and compensation. The factors that threaten the network instability include demands rise, the unpredictable generation from renewable sources, volatile energy costs, and the emergence of electric vehicles. Utilities have to predic......
  • Australia Consumer Electronics Report Q3 2014
    Published: 30-Jul-2014        Price: US $1295 Onwards        Pages: 71
    BMI View: The outlook for the Australian consumer electronics market is weakened by the maturity of the market, leaving diminished prospect for rapid growth compared to the majority of APAC markets. However, the high incomes of the local population will ensure the market remains lucrative, particularly for vendors of premium devices such as Apple. Vendors will look to emerging product categories such as Ultrabooks, Windows 8 tablets and phones, ultra-HD, smart and 3D TV sets, and LTE smartphones......
  • United Arab Emirates Information Technology Report Q3 2014
    Published: 30-Jul-2014        Price: US $1295 Onwards        Pages: 80
    BMI View: The volume and value of trade in IT products will grow steadily over the medium term, helped by strong domestic consumption in the run up to the 2020 World Trade Expo in Dubai and the strong takeup of IT solutions by small and medium-sized enterprises (SMEs). However, the re-export market faces considerable downside risks in the long term from the likely improvement in the competitiveness of other countries in the region, both in terms of logistics facilities and country risk factors. ......
  • France Telecommunications Report Q3 2014
    Published: 30-Jul-2014        Price: US $1295 Onwards        Pages: 114
    BMI View: An intensification of competition since the launch of Free Mobile in Q112 has added to pressure on revenues from regulatory measures such as MTR cuts and resulted in operators reformulating their strategies and even market exits. Compounding the pressure on revenues is the shift in consumer behaviour as they increasingly adopt IP alternatives as smartphone penetration rises, leading to declines in the volume of voice and SMS services being consumed. However, there are positive trends a......
  • SERVICES
    Value for Money
    We believe in "optimum utilization of available budget and resources". While servicing our clients' (your) market research requirements, we keep the same approach in focus to help you get the best value for your $$s.
    Ever Growing Inventory
    Ranging from the smallest feasible / required data (datasheets, data facts, SWOT analysis, company profiles, etc) to full research reports that help you make decisions, our inventory is updated almost on a daily basis with the latest industry reports from domain experts that track more than 5000 niche sectors.
    One Stop Solution
    Need a custom research report on medical devices market? Require all available business intelligence on 3D printing industry? Exploring F&B sector of a particular country/region? RnRMarketResearch.com is your one-stop-solution to all market intelligence needs. We not only offer custom research and consulting services, we also "bundle" reports to meet your needs and help you fetch the data analysis you require for your business.
    Dedicated Client Engagement
    Not limited to only "finding" relevant reports for you, our client engagement team dedicates its efforts to understand your "business need" and accordingly maps available research data to help you move forward. Call "your" client engagement executive any time of your day and get your questions answered in order to make the correct business decision.
    Saving Time and Efforts
    Simply share your research requirement details with us and let us do all the hard work to find required intelligence for you. When you add up our "one stop solution" and "dedicated client engagement" services mentioned above, you obviously know the time and effort saving you do by working with us.
    Payment Flexibility
    Working with Fortune 500 organizations, we understand the importance of being flexible for payments. Share your payment terms with us and we will surely match up to them to ensure you get access to required business intelligence data without having to wait for the payment to be done.
    Post-Purchase Research Support
    Have questions after reading a report / datasheet bought through us? Not sure about the methodology used for data available in the research? Talk to us / Share your questions with us and if required, we will connect you with the analyst(s)/author(s) of the report(s) and ensure you get satisfactory answers for the same. Need more data / analysis / report(s) on the topic of your research/project? The RnRMarketResearch.com team is here for you 24X7 to support you with your post-purchase requirements. Subscription Offers & Packages (Get in touch with us for more details - sales@rnrmarketresearch.com / +1 888 391 5441 )
    • Ad Hoc
    • Pay - as - you - go / Bucket Subscriptions
    • Fixed Cost for #of reports
    • Customize / Personalize as per your needs