Cloud computing is driving massive growth in IT, with IT job opportunities growing three-times faster than national job opportunities.
This is according to the IDC’s latest Economic Impact Model report “Economic impact of IT and Microsoft in South Africa”.
“IT spend is currently growing faster than the economy,” said Mark Walker, IDC associate vice president for sub-Saharan Africa, speaking at a media briefing in Johannesburg.
“On top of this, the IT workforce is growing three-times faster than the national average, specifically on the technology production side.”
The IT sector in South Africa is expected to reach R175 billion by 2022, at a 5-year compounded annual growth rate of 4.25%, according to the report, creating as many as 119,000 net new local job opportunities.
This growth is being driven largely by public cloud, said Walker.
“While the software market is expected to grow at a compound annual growth rate of 2.9% over the next 5 years, the cloud market is expected to grow at 21.9% to reach R11.53 billion.”
The increased adoption of cloud services in South Africa will create 112,000 net new job opportunities in the economy by 2022, driven by the benefits of cloud computing, such as lower capex, efficiency, scale, and flexibility.
“Microsoft will contribute to 44% of the available opportunities, offering 53,000 net new jobs in South Africa,” Walker added.
“And for each R1 of Microsoft revenue, there will be downstream revenue of R8.84 – with the hardware sector generating R2.94 in revenue, the broader software space generating R1.90, and the technology services sector generating R4.”
While these jobs will be available in South Africa, many of these opportunities run the risk of being lost to the country due to the current skills gap, Walker warned.
“It would be a shame if we don’t have skilled South Africans to fill these available jobs,” said Zoaib Hoosen, Managing Director Microsoft, speaking at the media briefing.
“At Microsoft, we are aware that there is a huge need for training, and we can’t rely on government alone. As such, we have been working with the Gauteng provincial government to offer free, online, self-paced courses to professionals,” said Hoosen.
This article was published in partnership with Microsoft.