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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.
- 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.