The International Data Corporation (IDC) is anticipating a challenging year ahead for the South African ICT sector.
Mark Walker, associate vice-president: sub-Saharan Africa, IDC Middle East, Africa and Turkey says that South Africa’s poor GDP figures, with just 1% predicted for 2017, along with rising inflation and the unfavourable exchange rate, are factors that will affect technology prices.
Furthermore, he notes that there will be overall growth and innovation in the sector but it won’t be an easy year, “We will see growth in new technologies, or technology that supports new business models, but the rest is going to be hard work and level pegging.”
Jon Tullett, research manager: IT services, Africa at IDC adds that 2016 was a difficult year for ICT in terms of security, and that security remains a barrier to adopting new technologies, “There were massive data leaks, ransomware is now prevalent, and we saw the emergence of IoT malware. 2017 is expected to be worse in every aspect of information security.”
IDC predicts a growth of about 5% in the ICT market next year, and an increase in IT spend towards the end of 2017.