"They're our biggest challenge, the fact is they are still the world champions," Elsom said on the eve of the game in Brisbane on Saturday.
Coach Robbie Deans said they had done as much research as possible on the Springboks, expecting them to send a hugely motivated side out on the field.
"We've done a thorough analysis, looking at trends and lots of statistics, and we know they are doing the same to us. I'm happy with our preparation and we understand the significance of this game. Because of South Africa's recent performance history, they will want to change their situation in this competition. I expect them to be fully committed and prepared," Deans said.
The New Zealand-born coach was also cautious when it came to popular opinion that this year's style of rugby had left the Springboks firmly on the back foot. Deans said it was difficult to be certain of this because the South Africans had clearly not been on song across the ditch.
"The rugby in the first couple of Tri-Nations games has been distinct, it has been more expansive than last year. But that was partly because of a conscious effort by the All Blacks to maximise what they have on their roster and also because they were relying on denying the Springboks any chance to get their game into gear.
"But it doesn't mean it can't be done, that the Springboks can't get last year's game back on track. They just haven't executed properly and if they are more accurate, who knows what might happen on Saturday?" Deans said.
Deans acknowledged that the pressure was on the Wallabies to return to former glories in the Tri-Nations.
"We've clawed our way back to number three on the rankings, but to push on we need to beat the top two teams [New Zealand and South Africa]. They've been some distance ahead of us, historically, but the will is there, without any doubt, to catch up on them."
Elsom added that his team could not afford to dwell on the Springboks' woes over the last two weeks.
"There've been plenty of theories about their performances on the last two weekends, but when we go out and play on Saturday, none of that will matter. What matters is the space between their ears, which is up to them really," Elsom said.