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Frost & Sullivan Sees New Markets Emerging for ERP Systems in South Africa - There is a sizeable client base for enterprise resource planning (ERP) among mid- and low-end enterprises in South Africa. This highlights a trend towards future requirements for less-expensive products
Frost & Sullivan Sees New Markets Emerging for ERP Systems in South Africa

 

PRZOOM - /newswire/ - Cape Town, South Africa, 2009/02/23 - There is a sizeable client base for enterprise resource planning (ERP) among mid- and low-end enterprises in South Africa. This highlights a trend towards future requirements for less-expensive products.

   
 
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New analysis from Frost & Sullivan (ITservices.frost.com), South African ERP Software Market, finds that the market earned revenues of $450.0 million in 2006 and estimates this to touch $885.0 million by 2013. The economic slowdown is however expected to keep growth at a constant rate though 2009.

If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants with an overview of the South African ERP software market, then send an email to Patrick Cairns, Corporate Communications, at patrick.cairns[.]frost.com, with your full name, company name, title, telephone number, company email address, company website, city, state and country. Upon receipt of the above information, an overview will be sent to you by email.

"The demand for ERP systems from South African users continues to rise," says Frost & Sullivan ICT industry analyst Lindsey Mc Donald. "This growth is boosted by the low cost systems available to the mid and low-end enterprise markets. With the increased saturation at the high-end, it is anticipated that more products will be developed to meet the needs of this market base."

Similarly, the development of new, value-added products and services will provide new revenue-generating streams from the high-end market. ERP providers that realise these needs and fulfil them early stand a better chance of accelerating growth across all enterprise types.

The mid- and low-end enterprise markets account for the biggest client base in the country. Over 700,000 enterprises are represented in this category, compared to less than 60,000 in the high-end enterprise market. At present, only a fraction of small and medium enterprises uses ERP systems.

However, barriers such as the slowdown in economic growth, high infrastructure and telecom costs, low speed of business transformation and integration complexities are inhibiting the growth of the ERP market. Small industry participants are further restrained by the strong branding of the big international vendors, which makes market penetration difficult to achieve.

"The ongoing business transformation is aggravating these challenges," states Mc Donald. "The ability to innovate or develop a unique differentiation factor is not moving at the speed required to ensure that companies can remain competitive in this industry."

Providers are still relying on differentiation factors such as market specialisation, short lead deployment time and spectrum of services. As the industry continues to push its products downstream, cost is becoming a critical factor.

South African ERP Software Market is part of the IT Services & Applications Growth Partnership Service programme, which also includes research in the following markets: Business Intelligence Markets in Africa, Mobile Content Services, Potential for RFID Applications in Africa, Analysis of African Fixed Telecommunications Service Providers' Capital Expenditure, Strategic Overview of the South African Open Source Market and South African Hosted IP Services Markets. All research included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants. Interviews with the press are available.

Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best in class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best practice models to drive the generation, evaluation and implementation of powerful growth strategies. Frost & Sullivan leverages over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from 31 offices on six continents.

South African ERP Software Market / M257

 
 
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Frost & Sullivan Sees New Markets Emerging for ERP Systems in South Africa

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