IT companies need to establish themselves in leadership positions in growth sectors in order to stay ahead in their market sector. With pressure on IT budgets, analysis from a corporate perspective is necessary to enable vendors and service providers to craft attractive solutions and to best penetrate their desired markets; it is therefore essential for IT vendors and service providers to have an in-depth understanding of the corporate, midmarket and SME industries’ IT expenditure in South Africa. The aim of the SA Corporate and SME IT Market Sizing and Forecast workbook is to provide such guidance in terms of IT usage and spend of various sized companies in South Africa, as well as overall analysis of the corporate, midmarket and SME IT market sizing, segmentation and forecasts from 2018 – 2023.

Description

The report focuses on the IT spend across the range of business customer segments.

The PowerPoint Publication and accompanying Excel workbook includes IT expenditure breakdowns and forecasts of the corporate market (which includes spend of companies with more than 200 employees) and breakdowns of IT expenditure of the midmarket/SMEs (companies with less than 200 employees). This study therefore provides an overview analysis of the corporate, midmarket and SME IT market including sizing, segmentation and forecasts up until 2023.

Expenditure and forecasts for each customer category is further segmented by three IT categories, namely hardware, software and IT services.

Objectives of the research

The research provides an overview of the corporate, midmarket and SME IT usage and expenditure. The SA Corporate and SME IT Market Sizing and Forecast research provides a breakdown of the IT market into:

  • Number of corporate, midmarket and SME organisations per customer segment, with more detailed segmentation by company size and vertical sector
  • IT spend and forecast analysis by customer segment (company size bracket) and IT service category (hardware, software and IT services)
  • Growth segments – identifying which segments of the market the biggest spending growth will come in the future.

Research methodology

The research is based on a holistic model of the composition of the corporate, midmarket and SME IT end-user sector, and their spending patterns, based on primary research inputs:

  • Profile of the corporate, midmarket and SME IT buying community from BMIT databases and other secondary sources
  • Input from business end user surveys conducted by BMIT
  • Statistical analysis by senior BMIT analysts

Table of Contents

Introduction

BMIT’s enterprise market sizing and forecast model segments business/government telecoms spending and provides forecasts from 2018 to 2023

Methodology and structure of enterprise ICT model

IT category segmentation

South African Economic Overview

  • GDP
  • GDP in 2018
  • Challenges for the economy
  • Potential for the economy
  • Inflation & Interest Rates
  • Fixed Capital Formation
  • GDP vertical segmentation over time
  • 4 sectors contribute 66.2% to GDP
  • GDP growth in industry vertical sectors
  • Sectoral GDP growth comparisons
  • Unemployment
  • Employment vs Unemployment
  • Employment by industry sector, and growth
  • Employment by industry sector, split by type
  • Employment by industry sector, split by type
  • ICT-related occupations

Companies & Segmentation

  • Number of companies
  • Corporate, Midmarket and SME segments
  • Businesses by size (number of employees)
  • Companies by vertical sector

Business IT Segmentation

  • IT service categories and segmentation methodology
  • Business IT segmentation
  • IT Market Introduction
  • Overview of IT market spend – by market segment (Rbn)
  • Overview of IT market spend – by service type
  • Total business IT spend, by customer service type
  • Comparison between number of organisations and IT spend per customer segment, 2018
  • Total business spend of R103.8bn by customer segment and IT service type, 2018
  • Corporate annual IT spend of R73bn by service type and organisation size, 2018
  • SME and Midmarket annual IT spend of R31.4bn by service type and organisation size, 2018 

Business IT Revenue Segmentation and Forecast

  • Business IT market trends
  • Total business IT market by customer segment
  • Total business IT market by IT category
  • Total business IT market, by customer segment and IT category, forecast from 2018 – 2023
  • Corporate IT forecast analysis by IT category, 2018 – 2023
  • SME and Midmarket forecast analysis by IT category, 2018 – 2023
  • Business IT hardware market trends
  • Business IT forecast analysis by customer segment, on Hardware, 2018 – 2023(Rm)
  • Business software market trends
  • Business IT forecast analysis by customer segment, on Software, 2018 – 2023 (Rm)
  • Business IT services market trends
  • Business IT forecast analysis by customer segment, on IT services, 2018 – 2023 (Rm)

Summary

 

 

Research team

The team for this research includes Brian Neilson (BMIT Research Director), Penny Smith, and Clinton Jacobs. This team has extensive sector experience in this field, having conducted these studies annually for the past 10 years.

Deliverables and format

The outcomes of the research and analysis will be documented in a rich PowerPoint document with supporting Excel tables. The PowerPoint document will contain charts and will be detailed enough to provide all the qualitative insights and interpretation, including market sizing and forecasting.

BMIT will also provide a workshop/presentation in the Gauteng region, while reserving its option to combine this topic with other published topics.

Related research

  • SA Telecoms Enterprise Market Sizing and Forecast 2019
  • SA ICT Vertical Industry Market Sizing and Forecasting 2018
  • SA ICT Regional Industry Market Sizing and Forecasting 2018
  • SA IT Market Overview Sizing and Forecast 2018 Update
  • SA IT Services Market Forecast and Analysis 2018 Update