Australian IT Services Bucks Global Doom and Gloom, IDC Says

Sydney, Australia, August 17, 2009 -- The Australian IT services market currently stands contrary to global and regional expectations. A new analysis report from IDC indicates that the Global Economic Crisis has created an opportunity for organisations to address spiraling costs and review plans on the way their business should evolve to retain a competitive edge.

The report, titled Australia IT Services Market 2009-2013 Forecast and Analysis, reveals that companies are continuing to spend. However organisations are more cautious as to where and how it is spent. There is no doubt that there are price pressures and contract renegotiations, however the Australian IT services market remains a hub of activity and will continue to do so over the forecast period.

IDC states that the IT environment has become increasingly complex, with the convergence of network and IT infrastructure, the inherited mix of legacy systems against newer compliance and governance standards and security concerns.

"The challenge for customers is to contain costs in running and managing this environment. Customers want to optimise, consolidate and centralise systems and applications. They are looking at ways to rationalise IT support costs; revamp their networks to capitalise on the convergence of voice and data as well as turning to an array of outsourcing solutions, be it in the form of managed services, hosted services or embracing delivery models such as SaaS," said Marina Beale, Senior Market Analyst, IT Services at IDC.

"Expect to see organisations embracing newer delivery models or employing a hybrid mix of models to address pain points. Also expect to see an increase in uptake of managed services as well as a greater activity and presence of next generation networks and services.

"We are currently in a cost conscious time but that does not mean that customers are not thinking beyond this and keeping in mind more transformational projects," added Beale.

The report reveals that the total spending in the IT Services market stood at approximately, A$13 billion in 2008 and is predicted to grow at a five year compound annual growth rate (CAGR) of 4% over the forecast period 2009-2013.

Source: IDC