IT Services - South Africa

  • South Africa
  • Revenue in the IT Services market is projected to reach US$6.16bn in 2024.
  • IT Outsourcing dominates the market with a projected market volume of US$2.20bn in 2024.
  • Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 4.94%, resulting in a market volume of US$7.84bn by 2029.
  • The average Spend per Employee in the IT Services market is projected to reach US$245.00 in 2024.
  • In global comparison, most revenue will be generated in the United States (US$522.00bn in 2024).

Key regions: United States, China, India, Japan, Germany

Region comparison

Analyst Opinion

The IT Services market in South Africa has been steadily growing over the past few years, driven by various factors such as increasing adoption of cloud computing, big data analytics, and the Internet of Things (IoT).

Customer preferences:
South African customers are becoming increasingly tech-savvy and are demanding more advanced IT services to help them stay competitive in the global market. They are looking for solutions that can help them streamline their business processes, improve efficiency, and reduce costs. Additionally, there is a growing demand for cybersecurity services, as businesses are becoming more aware of the risks associated with cyber attacks.

Trends in the market:
One of the major trends in the IT Services market in South Africa is the increasing adoption of cloud computing. Many businesses are moving towards cloud-based solutions as they offer greater flexibility, scalability, and cost-effectiveness compared to traditional on-premise solutions. Another trend is the growing use of big data analytics, as companies are looking for ways to extract valuable insights from the large amounts of data they generate. In addition, there is a growing interest in the Internet of Things (IoT), as businesses seek to leverage the power of connected devices to improve their operations and gain a competitive edge.

Local special circumstances:
South Africa has a unique set of circumstances that are shaping the IT Services market in the country. One of the biggest challenges facing the industry is the lack of skills and expertise in certain areas, particularly in cybersecurity. This has led to a shortage of qualified professionals, which is driving up the cost of hiring and training staff. Another challenge is the country's relatively slow internet speeds, which can limit the adoption of cloud-based solutions and other advanced technologies.

Underlying macroeconomic factors:
The IT Services market in South Africa is also influenced by broader macroeconomic factors, such as the country's GDP growth, political stability, and foreign investment. The South African economy has been experiencing slow growth in recent years, which has impacted businesses across all sectors. However, the government has been taking steps to promote investment and boost economic growth, which could have a positive impact on the IT Services market in the future. Additionally, political stability is a key factor in attracting foreign investment, and any instability could have a negative impact on the industry.


Data coverage:

The data encompasses B2G, B2B, and B2C enterprises. Figures are based on enterprises' technology spending on products, consulting, and outsourcing services.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of key players in the industry, Statista's primary research and surveys, and IT associations. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, internet users, and telecommunication. This data helps us estimate the market size for each country individually.


In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing method is used based on the market data characteristics. The main drivers are the GDP and its sector composition, internet penetration, the level of digitization, and the attitude toward IT security.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.


  • Revenue
  • Key Players
  • Analyst Opinion
  • Global Comparison
  • Methodology
  • Key Market Indicators
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