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South African demand for managed services growing

JOHANNESBURG – SOUTH Africa’s information technology (IT) channel partners delivered services valued at US$1,2 billion (R22,93 billion) in 2022.

This represents a year-on-year growth rate of over 17 percent, according to a global study commissioned by Cisco and conducted by Canalys.

The Shift to Managed Services Study surveyed 4 120 partners in South Africa, including managed service providers (MSPs) (12,1 percent), resellers, system integrators, and other channel partners (87,9 percent).

In 2022, there was a 0,5 percent year-on-year increase in the total number of partners delivering managed services in South Africa, and a 6,4 percent year-on-year increase in the number of MSPs.

“As this study shows, South African organisations see the value of MSPs,” said Hayward Rose, Partner Channel Lead for Sub-Saharan Africa at Cisco.

Going it alone is difficult when investing in enterprise IT and infrastructure, the official said.

Instead, organisations are accessing partners that are committed to meeting their technology needs and taking their operations to the next level.

“In turn, managed services become a profitable venture for channel partners, helping to grow a sector that’s becoming critical for modern-day business activities,” Rose said.

Despite global economic uncertainty, the projected outlook for managed services indicates worldwide growth of 12,7 percent, reaching a total value of $472 billion.

This growth surpasses the estimated 3,5 percent growth in overall IT spending.

Cyber security, expertise and demand for flexible consumption models are projected as key drivers.

Robin Ody, Senior Analyst at Canalys, said managed services were driving the global IT industry’s adaptability and growth.

“Our research underscores the substantial potential for companies selling managed services, opening up diverse avenues for them to thrive in a post-pandemic era,” Ody said.

– CAJ News

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