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African IT Expenditure Likely to Grow 11% in 2010
Apr 22, 2010

The IT spend in Africa is expected to enjoy 11% growth in 2010, supported by an increase in services and hardware products demand in South Africa, according to IDC.

Over the next year, IT expenditure in Africa will see 11% growth, expects International Data Corporation (IDC), as per the news published by Engineering News.

Moreover, nearly 80% of this expected spending would be allotted to build infrastructure, while the remaining 20% will be vested on software and services.

The African region, because of the after affects of economic turmoil, registered a slump in IT spending in 2009. South Africa witnessed 8.2% drop in IT spend, which is nearly $10 Billion, with the remaining emerging Africa seeing 3.5% decline. However, the slowdown in acceptance witnessed last year will now lead to the liberation of substantial pent-up demand in certain sectors for infrastructure, optimistically influencing the consumption in coming one or so year.

To add to, the focus, this year will be more on liquidity. Also, there will be a move to de-capitalizing IT and smart investment spending, which will further lead to a focus on IT financing and leasing, managed services, cloud computing, and overall ownership cost.

Besides, this year technology buyers will experience a new normality, and the focus will be on innovation and growth to reduce costs. Furthermore, the focus of companies will also be on the priorities of coordinating IT with business and risk management.

In addition to this, the major contributor in the African IT market growth this year will be South Africa. Backed by an increased demand in hardware products and service, the IT spend in South Africa will reach $11.6 Billion this year, a surge of 10%, according to IDC. Moreover, the upcoming World Cup 2010 will also increase IT spending in the country. This event has influence on the market growth not only in relation to the investments that are directly connected to the mega event, but also on those driven by investments associated with areas such as infrastructure.

According to a Research Analyst at RNCOS, “As the African IT market is expected to grow, the industry players like software purveyors, hardware companies, and IT services providers have sizeable opportunities to flourish this year. As a result, more IT industry players are expected to enter the IT market in Africa.”

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