Key IT Challenges Impacting South African Businesses in 2024

The South African economy faced a turbulent 2023, with GDP growth predicted to be below 1%. Freight and logistics disruptions, government concerns, energy constraints, soaring interest rates, and rising food and fuel prices exacerbated the challenges. These issues are expected to persist in 2024, compounded by the region’s sluggish growth. Amidst this economic backdrop, IT security companies play a crucial role in safeguarding businesses from cyber threats, ensuring data protection as organizations navigate these challenging times.

According to the Allianz Risk Barometer, the top five risks for local businesses in 2024 are cyber incidents, business disruptions, natural disasters, and the energy crisis. The research emphasises the importance of investing in infrastructure resilience and contingency plans to limit the possible effects of blackouts and other interruptions. In this article we will discuss the top IT challenges for South African Businesses.

Energy Crisis: Investment in Infrastructure Resilience

The energy issue is a major problem for businesses in 2024. The ongoing possibility of power outages and infrastructure breakdowns poses enormous hurdles for businesses, disrupting supply chains and affecting the broader economy. Businesses must continue to invest in alternate energy sources and create backup plans to mitigate the potential effects of blackouts.

The research emphasises the critical need for investment in infrastructure resilience and the creation of contingency plans to limit the potential consequences of blackouts.

Cybersecurity Protection Against AI-Based Cybercrime

AI is a transformative technology for many industries. Unfortunately, the same holds true for cybercriminals. Fraudsters’ techniques are becoming more complex as artificial intelligence technology evolve. AI-enabled scams are expected to become more advanced and personalised in 2024, with AI models successfully mimicking trusted sources. These scams may involve emails and communications that appear legitimate but are intended to phish for personal information such as ID numbers, bank data, and login passwords.

Business will need to step up the fight against these cyber risks by strengthening their present cybersecurity strategy and raising awareness of AI-based cybercrime inside the company.

Protecting the Integrity and Confidentiality of Data

The protection of data integrity and confidentiality has become a top priority owing to the growing volume of data being generated and stored. This has and will translate into the ongoing implementation of sophisticated cybersecurity measures, the assurance of adherence to data protection regulations, and providing guidance to users on safe data practices.

Attracting Top Cyber and IT Experts: The Lack of Skills Need Urgent Attention

The need for qualified cybersecurity experts is rising in tandem with the rate of technological advancement. Businesses are pouring resources into training and development programmes to provide employees the tools and skills they need to combat cyber threats. The concerning issue is that organisations are finding it tough to attract and retain talented people due to the large talent gap in the cybersecurity area and IT in general.

Increasing Expenses in Cloud Services

The cloud has become an essential service for numerous businesses worldwide. Regrettably, the ongoing impact of inflation and the continuous increase in storage costs have resulted in a rise in prices for cloud services. According to a report by International Data Corp, there is a projected global spending of over $1 trillion on cloud computing by 2024, with a compound annual growth rate of 16%. It is essential to identify strategies to reduce cloud expenses.

Recognising that the cloud is not the best option for every application, workload, and data type will help a company save down on cloud costs. Consider utilising a combination of cloud services and on-premises servers, co-location, and other non-cloud options to optimise the impact on business operations.

Integrating and implementing AI

The past few years have seen significant advancements in artificial intelligence (AI) with the emergence of generative AI tools, automation, and big data analytics. Regrettably, incorporating these advancements into a business may present some difficulties. First and foremost, implementing AI requires a strategic approach that is customised to meet the specific needs of an organisation. It is essential to develop a strategic plan that focuses on the critical areas where technology can generate the highest value.

To successfully incorporate AI into the business operations, also asks for careful thought on the effects on the workforce. This entails making sure the appropriate individuals are assigned to handle the technology and that the team is prepared for the change. It is important to ensure that a company’s current technology is compatible with AI or that owners and managers are open to investing in upgrading outdated systems. Otherwise, AI could end up being more of a hindrance than a benefit.

Harnessing the Power of Real-Time Data Analytics

The increasing need for real-time analytics capabilities is driven by businesses’ desire to make quick, data-driven decisions. Real-time analytics enables a company to offer valuable insights, facilitate decision-making, and improve business operations. However, to successfully implement real-time analytics, it is necessary to have streamlined data processing and analytics pipelines, along with reliable streaming technologies. Regrettably, such solutions can pose challenges in terms of complexity, scalability, and expenses.

To stay ahead of the competition and harness the power of big data and analytics, it’s worth considering collaborating with IT companies in South Africa. They can provide valuable assistance throughout the entire process. Companies that provide data analytics services can assist a business in establishing attainable objectives and offering valuable insights to guide it through the complexities of implementation.