South African Systems Integration Market, Forecast to 2021

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Systems integration (SI) makes up a significant portion of IT budgets in South Africa, as enterprises seek to accelerate their digital transformation. In the absence of an established leading technology platform across all operations, enterprises have mostly opted for best-of-breed systems. As a result, systems integration (SI) spend is being driven by the wide range of highly distributed systems and applications that enterprises are integrating in their operations.
In 2016, SI spend across seven verticals— banking and financial services (BFS), healthcare, manufacturing, mining, oil& gas, public sector, and retail—was estimated at R9.4 billion. The SI spend in these sectors is expected to grow to R10.5 billion by 2021.
This market insight provides an analysis of the current structure of the systems integration market, with an emphasis on the main service categories: infrastructure integration, application integration, and consulting services. Included in the report is a discussion of some of the main technology and industry-specific trends shaping the pattern of SI spending. Strategic action points are highlighted in response to the current and changing dynamics of the market.
The SI opportunity in the aforementioned verticals is expected to record a CAGR of 2.9% during the 2016–2021 period. BFS, which dominates the market (56%), along retail (18%) and the public sector (10%), will account for majority of the growth. Financial services providers and retailers, in particular, are digitising their operations to better serve an increasingly demanding customer base and a more mobile labour force. They are striving to leverage advanced analytics and mobility solutions in order to provide more personalised services and improve their engagement with customers.
The oil and gas and healthcare sectors are expected to have the highest SI spend growth, albeit coming off a very low base. The varying digital maturity stages at which the different verticals are will force SI providers to rely less on a one-size-fits-all approach and focus on adopting a strategic-partnership-oriented approach.
Whilst the hardware and software market is dominated by international OEMs and providers, local providers have become more competitive in the SI market. However, sectors such as BFS are keeping some of the development and management of applications in-house, as IT is increasingly becoming a more strategic differentiator in the industry. Of the three main SI categories, spend across the seven verticals is dominated by infrastructure integration, accounting for about 40% of the total SI budget. This is due to the continued spend on network and data centre integration, as enterprises invest in becoming more cloud-ready. During the forecast period, the contribution of integration consulting is expected to rise from 28% to 32%, as IT service providers adopt a more consultative selling approach.

Table of Contents

1. Executive Summary
Key Findings
Executive Summary
2. Research Scope and Definitions
Research Scope
Research Aim and Objectives
Market Definitions
Systems Integration—Service Provider Landscape
3. Industry Overview
Global Market Context and Impact on ICT
Digital Transformation—Impact on SI
4. Drivers and Restraints—Systems Integration Market
Market Drivers
Market Restraints
5. Forecasts and Trends—Systems Integration Market
Service Revenue Forecast
Systems Integration—Market Revenue Breakdown
BFS—SI Trends
Healthcare—SI Trends
Manufacturing—SI Trends
Mining—SI Trends
Oil and Gas—SI Trends
Public Sector—SI Trends
Retail—SI Trends
Verticals SI Spend Context
Service Revenue by Category
6. Growth Opportunities and Enterprises to Action
Growth Opportunity 1—Vertical-specific Applications
Growth Opportunity 2—Hybrid WAN Models
Growth Opportunity 3—Agile Infrastructure Deployment
Growth Opportunity 4—Consultative IT Selling
Strategic Imperatives for Success and Growth
7. Competitive Analysis
Competitive Landscape—Service Provider Evolution
Competitive Landscape
Systems Integration—Solution Process
Systems Integration—Key Technology Trends
8. Key Conclusions
Key Takeaways
Legal Disclaimer
9. Appendix
Abbreviations and Acronyms Used
10. The Frost & Sullivan Story

List of Figures & Charts

1. Systems Integration Market: Percent of Total IT Budget by Category, South Africa, 2016
2. Systems Integration Market: Key Service Providers, South Africa, 2016
3. Systems Integration Market: Historical Economic Growth (GDP), Global, 2015
4. Systems Integration Market: Key Market Drivers, South Africa, 2017–2021
5. Systems Integration Market: Key Market Restraints, South Africa, 2017–2021
6. Systems Integration Market: Revenue Breakdown Forecast by Vertical, South Africa, 2016, 2021
7. Systems Integration Market: Spend as Percent of IT Budget, South Africa, 2016
8. Systems Integration Market: Evolution of the Service Provider Landscape, South Africa, 2011–2020
9. Systems Integration Market: Changing Competitive Landscape, Global, 2014 and 2021
10. Systems Integration Market: Systems Integration Service Flow, South Africa, 2016
11. Systems Integration Market: Creating a Win-win Value Chain, South Africa, 2016

1. Systems Integration Market: Current and Forecast ICT Spend Category Growth, South Africa, 2016 and 2021
2. Systems Integration Market: Current Spend and Expected Growth by Vertical, South Africa, 2016–2021
3. Systems Integration Market: Key Service Categories, South Africa, 2016
4. Systems Integration Market: Digital Transformation Elements, South Africa, 2016
5. Systems Integration Market: Service Revenue Forecast, South Africa, 2014–2021
6. Systems Integration Market: Systems Integration Opportunity Analysis, South Africa, 2016
7. Systems Integration Market: Total Systems Integration Spend by Service Area, South Africa, 2016 and 2021




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