Microsoft sparks local IT industry, says IDC study
Microsoft-related IT activities in South Africa will be the source of more than 153 000 jobs in 2007, constituting 43% of the entire South African IT workforce, according to a study released today by the International Data Corporation (IDC).
IDC’s independent research, which was commissioned by Microsoft, examined the IT industry’s impact on local job creation, company formation, and tax revenues in 82 countries, representing 99.5% of the total IT spending worldwide.
IDC found that the Microsoft ecosystem – defined as people working at IT companies and IT professionals who create, sell, or distribute products that run on Microsoft platforms – plays a key role in driving the IT industry's overall contribution to job growth and economic development.
Over the next four years, IT-related jobs in South Africa are expected to increase by nearly 90 000.
The study also found that Microsoft serves as an economic catalyst in every country in which it operates. The revenues earned by partners working with Microsoft in South Africa far exceed the revenues earned by Microsoft itself. For every R1 that Microsoft earns in 2007, partners working with Microsoft will earn R9.69.
“Today, technology is a key factor for economic, social and technological progress, and for the sustainability of economies all over the world," said John Gantz, IDC's Chief Research Officer. "The IDC research underscores what we've always known to be true, that software provides a disproportionate contribution to a vibrant IT economy.”
In 2007 software revenues will grow by12.2% in South Africa, compared to 8.9% for the rest of the IT industry. According to the research findings, in 2007 over 6 000 vendors in the Microsoft ecosystem will make more than R23 billion in revenue, and invest billions more in research development, marketing, sales and support in local economies.
“IDC’s research quantifies the enormous power of software to create local jobs and grow economies around the world, in both developed and developing markets,” said Pfungwa Serima, managing director of Microsoft SA.
The study shows that spending on hardware, software and IT services in South Africa will reach R61 billion in 2007. Growth in the IT Services industry is expected to be around 9% a year for the next four years. The study also found that IT spending on software creates a disproportionate share of the skilled job growth.
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