The South African Information technology services market is expected to grow at a rate 1.5% in 2014 and 2% in 2015. The key drivers include IT outsourcing, cost cutting, application modernization, analytics and business intelligence, cloud computing and managed services.

1. Information Technology
Outsourcing in South Africa
How is the South African Information Technology
Market Shaping Up?
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2. South Africa Information Technology Market Overview
South Africa Economic Growth Rates
Source – IMF
Economic Overview – 2015 Expected to be Stronger than 2014
South Africa IT Services Growth Rates
Source – HCL Estimates
 2014 is expected to be sluggish for South African economy with continued labor
conflicts and electricity constraints.
 However, 2015 is expected to be better, with growth rates forecast pointing to an
uptick of 100 bps.
IT Services Experiencing a Recovery
 The South African IT services market, after experiencing a de-growth in 2013, is
expected to grow at a rate 1.5% in 2014 and 2% in 2015.
 With the economic pressures, the key drivers are managed services contracts,
rather than traditional outsourcing contracts.
 The key drivers include IT outsourcing, cost cutting, application modernization,
analytics and business intelligence, cloud computing and managed services.
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3. South Africa: Key Technology Drivers
Key Challenges Key Information Technology Priorities
Budgetary Pressures
Lack of IT Skills
Growing Regulatory Pressures
Cost Efficiency
Revenue Enablement
Modernization Initiatives
Cloud Computing / SaaS
Analytics and Business
Intelligence
Managed Services
Labor Issues
Mobility
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4. How is HCL Placed to Address the Changing Priorities of Customers?
Key Services
Local Strengths
Key Customers
Managed Services Model
HCL offerings in South Africa include IT outsourcing, applications development and maintenance,
infrastructure management, data center services, cloud computing, software development, mobility,
engineering services, business intelligence and analytics and BPO.
HCL Established South Africa Glocal Center of Excellence (GCoE) in Johannesburg to serve large South
African companies.
More than 400 professionals operate at offices in Cape Town and Johannesburg.
Key customers include Pick n Pay, Avis, UTI, Old Mutual, Shoprite, Engen, Makro, Afrox, Clicks, and
several large South African banks and telecommunications companies.
HCL is a pioneer of the managed services model, with 56% of revenues coming from managed
services/fixed price projects.
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