The local IT market could increase its annual revenue by R6 billion, by 2011, if it manages to reduce software piracy by only 10%.
This is according to the latest findings of the International Data Corporation (IDC), on the impact of piracy on the South African economy. The Business Software Alliance (BSA) commissioned the IDC study.
According to the research, nearly $9 billion (about R63 billion) is spent per year in SA on IT. This accounts for 3.4% of the country's gross domestic product. The sector is estimated to consist of about 14 000 companies, which creates a total of about 84 000 jobs and generates $2.9 billion (about R20.3 billion) in taxes.
However, the industry could create 1 200 more jobs in the next four years, generate R480 million more tax money, and improve its revenue by R6 billion if it reduces piracy, says the BSA.
"The research estimates that 35% of PC software installed on personal computers in SA in 2006 was unlicensed," says Alastair de Wet, BSA chairman. "When countries take steps to reduce software piracy, everyone stands to benefit."
He explains that for every rand spent on legitimate software, another R1.25 is spent on related services, such as installing the software and providing maintenance services.
"Most of these benefits accrue to locally-based software services and channel firms - meaning the greatest proportion of the economic benefits from lowering software piracy stay within the country," says De Wet.
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