Information Technology (IT) services provider Dimension Data on Monday announced that it has invested more than R1-billion in South African technology infrastructure over the past three years.

The spend on infrastructure included R984-million on a hosting and network infrastructure, R200-million towards the Seacom cable, a R20-million datacenter, a voice network, and the roll out of African points of presence to ensure that the company has a robust and comprehensive Pan-African network.

"Our investment in infrastructure, both here in South Africa and in other African countries, positions us to help organisations move smoothly and sensibly into a world of IT as a utility and, therefore, remain competitive and profitable throughout," said Dimension Data Middle East & Africa MD Jason Goodall.

Goodall added that the company's confidence in the future of the IT services business locally and in the rest of Africa drives it to stay ahead of the technology evolution curve and, thereby, ensure that its clients are enabled to be both globally competitive and significant contributors to their local economies.

He added that the global trend was towards more managed and hosted services as well as selective and comprehensive outsourcing. Organisations wanted to cut costs, boost productivity, tighten security, and ensure compliance by consolidating their own IT infrastructures and take advantage of the business process integration benefits of the convergence of IT and telecommunications.

Executives were questioning why they should spend money and time managing complex IT assets and highly specialised talent needed to keep their systems on par with the latest developments, when there are companies that have financial muscle, talent, close and influential vendor relationships, and global experience that could keep them at the cutting edge of IT, and business.

"Also, IT as a utility is no more than ten years away. Outsourcing and managed services are evolving steadily, through virtualisation of assets and software, towards cloud computing - which will allow organisations to buy IT services on a pay as you go basis. So, organisations need to start planning for a more services orientated approach to business enablement via technology," said Goodall.

According to a BMI-Techknowledge report, the South African IT services market grew by 25,2% in 2007 to a total value of R27-billion in 2008. The market was expected to grow to a value of R38,6-billion by 2013, at a rate of 7,4%. Outsourcing services accounted for the biggest portion - 40,4% - of the 2008 services market.