http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.22Change: -0.23
R/$ = 11.16Change: -0.09
Au 1240.10 $/ozChange: -4.17
Pt 1243.50 $/ozChange: -18.70
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Feb 05, 2010

Asian giants taking a renewed interest in African ICT prospects

Back
Integr8 Group joint CEO Robert Susman discusses the South AFrica ICT sector. 05.02.2010. Cameraperson: Nicholas Boyd. Editing: Darlene Creamer
ICT|Africa|Integr8 Group|PROJECT|Projects|Rental|Africa|Asia|Australia|South Africa|United Kingdom|United States|Communication Technology|Inadequate Infrastructure|Maintenance|Products|Service|Services|Infrastructure|Robert Sussman|Communication Technology|Indian And Chinese Information|Relatively High Bandwidth Costs|Broadband|Communication Technology
|Africa|PROJECT|Projects|Rental|Africa|||Maintenance|Products|Service|Services|Infrastructure|||
ict-city|africa-company|integr8-group|project|projects|rental|africa|asia|australia-country|south-africa|united-kingdom|united-states|communication-technology-industry-term|inadequate-infrastructure|maintenance|products|service|services|infrastructure|robert-sussman|communication-technology-product|indian-and-chinese-information|relatively-high-bandwidth-costs|broadband|communication-technology
© Reuse this



Despite South Africa’s inadequate infrastructure and relatively high bandwidth costs, Indian and Chinese information and communication technology (ICT) companies are showing an increased appetite to become involved and invest in the South African and African markets, Integr8 Group joint CEO Robert Sussman says.

Regulation of the sector has also been a challenge, but recent moves towards deregulation have seemingly increased the interest out of the two giant Asian eco-nomies.

South Africa

has seen an outflow of IT skills to more developed markets, but these are now return- ing, Sussman avers, adding that the country has some of the highest-quality ICT skills available internationally.

The challenges have not had a completely negative effect on the sector. “Innovation coming out of South Africa can compete on a global level, as any ICT company in South Africa has had to deal with challenges from the beginning, such as a lack of infrastructure, a lack of broadband and a lack of connectivity,” he says.

The global economic crisis has also affected the South African ICT industry, primarily by limit- ing companies in terms of expend- iture and capital outlay. This has resulted in companies holding back on innovative projects, rather using capital to invest in ICT services to make the business run more efficiently. There has been a shift in industry towards renting assets, such as hardware, software, services and implementations, allowing companies to still carry out projects, but not have to provide a large amount of upfront capital.

Sussman adds that the eco-nomic crisis has also levelled the playing field in the sector, as a few larger IT companies, which did not have strong underlying business strategies with good annuities, did not survive.

Meanwhile, Integr8 launched a new service in 2009 to assist clients to carry out ICT projects and innovation roll-outs – its ICT asset rental service, which offers clients a complete roll-out of a project, such as software and hardware implementation and maintenance, rented to them over 36 months. After this period, the client has the option to buy, return, or have the asset updated.

“The pressure on the economy resulted in new products and ser-vices for Integr8 to provide and new opportunities for its clients. A lot that was positive came out of the adversity,” he says.

In addition, Integr8 has noticed a significant adoption of software as a service. Sussman predicts that companies will use a mixture, or hybrid, of on-site and off-site ICT services, depending on the type and size of a company. He also predicts the use of purely pay-per-use software and day-to-day commoditised services. Continued pressure on telecommunication providers to lower the cost of telephone calls should result in a rapid decrease in the cost of bandwidth. This is in line with the companies’ multitiered hosted platforms.

In the future, innovation is key for ICT companies, not only to keep ahead of but to keep up with competitors. Integr8 employees spend 70% of their time on daily activities, and 30% on researching innovations and new products and services. Sussman adds that any company that is serious about doing business looks towards using IT, technology and communication to operate more efficiently.

The current year will see an aggressive drive targeted not only at existing and new clients but also at the public sector. The company has refined its service delivery model to the private sector over the past nine years and has already secured substantial contracts in the public sector. Substantial growth from this strategy is already under way and a strategic focus in this area is being promoted.

The group also plans to con-tinue its drive into Africa, as well as branch out to Australia, Asia, the UK and the US. It will also focus on social upliftment in the regions it expands to and aims to train, develop and uplift local people and form alliances with local equity partners.

“This is probably one of the most exciting times to be in ICT, South Africa and Africa. We think that the opportunity, to not only focus on organic growth, but also acquisitive and strategic company growth, is so huge that we are going to spend most of our time focusing on new services and innovation for the South African and African market,” concludes Sussman.

Edited by: Martin Zhuwakinyu
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other News This Week News
The broad-based black economic-empowerment (BBBEE) alignment process in the con-struction sector has begun, dur-ing which the sector codes of the Construction Sector Charter Council (CSCC) will be aligned with the revised Codes of Good Practice (CoGP), which come...
It is second time lucky for Toby Venter. Ten years ago he negotiated to buy the Kyalami racetrack, but “the deal did not materialise”.
Environmental solutions company I-Cat started construction work on its R22-million, 1 949 m2 environmentally sustainable office and warehouse facility, commissioned by I-CAT Environmental Solutions, at a launch event in October. The new sustainable I-CAT campus,...
More
 
 
Latest News
Trade union Solidarity warned on Wednesday that ongoing restructuring and retrenchments in the information and communication technology (ICT) industry continued to put employees in the sector under “immense” pressure. This as the union claimed it had received...
Directors of investment holding company Combined Motor Holdings (CMH) say they are satisfied with the results achieved in the six months ended August 31, during which time the local economic environment continued to battle impediments to growth and national dealer...
In the Medium-Term Budget Policy Statement Finance Minister Nhlanhla Nene has outlined concrete plans to consolidate South Africa’s pubic finances and restore macroeconomic balances. The proposed adjustments – lower than planned spending and increased tax revenues -...
More
 
 
Recent Research Reports
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
 
 
 
 
 
This Week's Magazine
The broad-based black economic-empowerment (BBBEE) alignment process in the con-struction sector has begun, dur-ing which the sector codes of the Construction Sector Charter Council (CSCC) will be aligned with the revised Codes of Good Practice (CoGP), which come...
It is second time lucky for Toby Venter. Ten years ago he negotiated to buy the Kyalami racetrack, but “the deal did not materialise”.
Environmental solutions company I-Cat started construction work on its R22-million, 1 949 m2 environmentally sustainable office and warehouse facility, commissioned by I-CAT Environmental Solutions, at a launch event in October. The new sustainable I-CAT campus,...
IAN EVANS AirWatch file synchronisation and sharing system was initially designed for a large airline company
Effective file synchronisation and sharing across an organisation’s structures can provide the basis for robust mobile-device and document management while maintaining proper backup, version control and content distribution. These are the lessons learned by complex...
Hotel group Carlson Rezidor currently holds the largest hotel pipeline in Africa with 30 hotels and 6 300 rooms under development. The hotel group develops and operates Radisson Blu in the upper upscale segment and Park Inn by Radisson in the mid-market segment. With...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks