Monday, 28 January 2008

BSA-IDC report pinpoints benefits predicted from reducing SA software piracy

According to an article in Moneyweb, the reduction of software piracy over the next four years in South Africa could create a stronger local information technology (IT) sector, generate new high paying jobs and contribute to the country’s economy. These conclusions are contained in a new study released today by the Business Software Alliance (BSA). The study, commissioned by BSA and conducted independently by International Data Corporation (IDC), notes that the IT industry already is a major contributor to jobs, tax revenues and South Africa’s gross domestic product. The South African IT industry is projected to deliver 99 000 jobs, R84 billion in economic growth and over R30 billion in tax revenues by 2011. According to the study,
"Reducing South Africa’s 35% software piracy rate by 10 percentage points would have a “multiplier effect” and increase those economic benefits, generating 1200 additional jobs, R480 million in tax revenues and R6 billion in spending in the local IT sector over the next four years".
The BSA-IDC study is available online here. It examines the bottom-line economic benefits of reducing PC software piracy in 42 countries. The cornerstone of the research is IDC's Piracy Impact Model (PIM), which takes inputs from IDC's market research around the globe on IT spending and software piracy, along with other information on IT employment levels and IT-related taxes.

Of the 42 countries examined, only 4 were from Africa -- the other three being Egypt, Kenya and Morocco.

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