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 [...]
  • Graft-Versus-Host Disease (GVHD) Treatment Market worth $407 million by 2018
  • The graft-versus-host disease (GVHD) treatment market value will increase from $297 million in 2013 to $407 million by 2018, at a Compound Annual Growth Rate (CAGR) of 6.59%, according to research and consulting firm GlobalData. The company’s latest report* states …

  • Poland Pharmaceutical Industry Growing at 8.3% CAGR to 2020
  • Factors such as the growing elderly population, increasing availability of affordable medicines, and transparent regulatory guidelines will provide the necessary impetus for the growth of the Polish pharmaceutical market, but a decrease in mark-up prices and the country’s stringent drug …

  • Asia-Pacific, Led by China, Drive the Global Methanol Industry
  • China is driving the global methanol industry, with tremendous demand from both its energy and petrochemicals sectors. It accounts for 87.9% of Asia-Pacific’s (APAC) methanol capacity, and 51.9% of the global methanol capacity. Despite a large planned capacity increase in …

  • 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 …

  • Insight into Features, Concerns, Marketing Strategy and Supply Chain Deployment of Apple Watch
    Published: 16-Oct-2014        Price: US $1300 Onwards        Pages: 16
    On September 9, alongside with the iPhone 6 and iPhone 6 Plus, Apple took the market by surprise with the unveiling of the market's long-awaited Apple Watch, which was originally set to be released in 2015. The whole set of graphic and video introduction for Apple Watch were displayed on Apple's website, reflecting Apple's changing marketing strategy that used to hold the allure of mystery for unreleased products. This report outlines features and designs of Apple Watch with corresponding concer......
  • Wearable Sensor Market by Type (Motion, Pressure, Temperature, Medical & Others), Application (Wristwear, Eyewear, Footwear, Bodywear), Industry Verticals (Consumer, Healthcare, Enterprise) and Geography – Global Forecast to 2020
    Published: 16-Oct-2014        Price: US $4650 Onwards        Pages: 254
    The global sensors in wearable electronic products market sizeis expected to grow at a CAGR of 48.40%, and cross $654.16 million by the end of 2020, with steady sales of wristwear and footwear category, along with the emergence of small market size for eyewear and bodywear category. Wearable computers are small electronic devices that are worn by the user, which assist mobile computing and wireless networking. The term “Wearable Electronics” refers to any electronic device or product which c......
  • Smart Grid Networking Market by Hardware (Cables, Controllers, Routers, Smart Meter Com Module, Switches), by Software (Network Management: Performance, IP, Device, Security, Configuration), by Services, & by Regions – Global Forecast & Analysis (2014 – 2019)
    Published: 15-Oct-2014        Price: US $4650 Onwards        Pages: 174
    Smart grid networking deployments by utility operators helps them to enable two-way communications between different components of electricity transmission and distribution grids. Smart grids networking solutions collects critical data, analyze the data, manage it and monitor the flow of data to keep check on the performance of computer networks. This in turn, helps the utility operator in decision making for an instance a well-managed grid utilization data helps in forecasting the expected elec......
  • FEA Software Market in the APAC Region 2014-2018
    Published: 15-Oct-2014        Price: US $2500 Onwards        Pages: 99
    Finite Element Analysis (FEA) is a software used in engineering, which aims to evaluate the functionality of a product design before its prototypes are produced. It is used in the Manufacturing industries for the estimation of structural strength and behavior, modeling, simulation, and design optimization. It enables the end-user to produce quality products, reduce cost, produce better product design, and fasten product development time. It is mainly used in the Automotive, Aerospace and Defense......
  • Global Distributed System Management Software Market 2014-2018
    Published: 15-Oct-2014        Price: US $2500 Onwards        Pages: 67
    A distributed system is a collection of independent computer systems that does not have shared memory, but still appears as a single system to its users. For instance, the network of workstations, distributed manufacturing system (for example, automated assembly line), and the network of branch office computers. A distributed system management software helps in managing distributed systems through a computer network. TechNavio's analysts forecast the Global Distributed System Management Softw......
  • Global ITSM Market 2014-2018
    Published: 15-Oct-2014        Price: US $2500 Onwards        Pages: 92
    IT Service Management (ITSM) is a process that intends to align the delivery of quality IT services according to the needs of the company by adopting and implementing tools and solutions provided by a service provider through people, process, and technology. ITSM focuses on the delivery of end-to-end services using the best practice models, rather than managing each IT component separately. The ITSM market has undergone a transformation in recent years. IT management solutions have become increa......
  • Global Maritime VSAT Market 2014-2018
    Published: 15-Oct-2014        Price: US $2500 Onwards        Pages: 94
    VSAT is the acronym of Very Small Aperture Terminal, the term ‘Very Small' coming from relatively small sized antenna mounted on walls, roof tops or ground. VSATs are communication terminals that transmit and receive text, audio, and video data using satellite broadband internet services. A VSAT network comprises a main station or hub and other sites located at remote places, which communicate with the satellite. These networks provide good wireless broadband connectivity in remote areas where ......
  • Global Antivirus Software Package Market 2014-2018
    Published: 15-Oct-2014        Price: US $2500 Onwards        Pages: 80
    Internet usage has become very essential in day to day life. However, increased usage also brings with it the risk of infecting the computer system with various kind of malware, irreparably damaging the system. A malware is a program, which gets loaded in a computer through the internet or infected discs. A computer virus is man-made and has a tendency to replicate itself. Therefore, antivirus software is used to fight such viruses. It detects, prevents and removes viruses caused by a malicious ......
  • Global Server Virtualization Market 2014-2018
    Published: 15-Oct-2014        Price: US $2500 Onwards        Pages: 61
    Server virtualization is the replication of multiple server instances catering to different computing needs of the enterprises on a single server hardware. Every instance of the server being replicated on the physical server acts as an individual server which increases the performance of the server infrastructure. The computing resources are centrally pooled at the server and allocated to the various computing services being provided through the server. The computing resources are replicated a c......
  • 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 - [email protected] / +1 888 391 5441 )
    • Ad Hoc
    • Pay - as - you - go / Bucket Subscriptions
    • Fixed Cost for #of reports
    • Customize / Personalize as per your needs