Publications
Partners
Johannesburg - Would we see a difference in the country's economy if the information technology industry were to disappear?
The answer seems to be yes, since the industry is growing, generates a substantial tax revenue for South Africa and creates jobs.
According to research carried out by the International Data Corporation at Microsoft's request, IT represents a major catalyst for local economic growth in present challenging circumstances and during the anticipated recovery period.
The International Data Corporation's director Mark Walker said growth in the IT industry is dynamic and will continue in an upward trajectory until after 2013.
Expenditure in the IT industry will top R89bn at the end of 2009 - 4.3% of the gross domestic product (GDP). In 2010, it will grow to about R116bn, 4.9% of next year's estimated GDP.
Walker said IT growth up to 2010 will be driven by initiatives arising from the Fifa 2010 World Cup soccer tournament. Up to 2012, the engine will be government infrastructure projects.
After that, commercial demand will return when, according to the International Data Corporation, the economy will have recovered. In addition, better access to broadband will encourage new applications. And after 2013, new technology will drive the market.
At the end of the year, IT-related tax will reach R26.7bn - just under 5% of total tax. R10.7bn in new tax will be generated over the following four years.
At the end of 2009, a total of 429 500 people will be employed in IT-related functions. Between 2010 and 2013 - if the industry grows by between 5% and 8% - it is anticipated that 95 200 new IT jobs will be created.
Walker emphasised that these jobs demand high skills levels. "There will be a need for all these new jobs, but it will definitely be a challenge to find candidates," he said.
While software represents only 12% of total IT spending, it is responsible for 47% of the industry's job creation, Walker said.
- Sake24.com
For more business news in Afrikaans, go to Sake24.com.
