The South African IT services market is projected to grow to R182 billion by 2028, driven by the increasing demand for cloud services and the emergence of generative artificial intelligence (GenAI). Cloud-native development, digital transformation, and hyper-automation are key trends impacting the sector. While growth opportunities exist, challenges remain, including cost management, cybersecurity threats, and a skills shortage.
The South African IT services market reached an estimated R104.9 billion at the end of 2024, and is projected to grow to R182 billion in 2028, amid soaring demand for cloud services., which shows this market is poised to grow at a healthy compound annual growth rate of 14.8% over the next three years.
BMIT MD Chris Geerdts tells ITWeb that generative artificial intelligence , will be a game-changer in the sector, as it continues to rapidly gain traction, with the potential to revolutionise content creation, customer service and various other business functions – further driving cloud services consumption.
“A key driver which is emerging and likely to dominate in future, is the growth in the use and capability of GenAI, which is highly-impactful at a national, business and personal level, and is particularly cloud-intensive, due to the need to process substantial volumes of data,” notes Geerdts. Dwindling services include custom application development, system integration and information systems consulting.
“One fundamental challenge reported by the companies BMIT surveyed is cost management, as those that have migrated to the cloud are finding the costs are higher than anticipated. In addition, many companies are paying for their services in forex, resulting in variable opex each month. At the same time, economic growth remains low,” states Geerdts.
DIGITAL TRANSFORMATION GENAI CLOUD SERVICES CYBERSECURITY SKILL SHORTAGE
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