For further information on the Information Technology Services industry in Australia, please contact Commercial Specialist Duncan Archibald, U.S. Commercial Service Sydney on Tel: (+61-2) 9373-9212, Fax: (+61-2) 9221-0573, Email: duncan.archibald@N0SPAM.mail.doc.gov

Overview

In Australia, the information technology (IT) services industry accounts for approximately 35 percent of the total IT market and is valued at USD10 billion. Growth in the IT service market slowed through 2008-2009 but is showing signs of picking up pace. The Australian Federal Government is the largest public sector client of the IT services industry. Key clients include: Department of Defense, Australian Taxation Office, Centrelink, Veterans Affairs, Australian Customs, Medicare, and Department of Human Services. Federal Government spending on IT services has increased strongly this year, and will drive the sector for the next 18 months.

The major users of IT services in the private sector include: finance, insurance, retail, transport, mining, telecommunications, and media sectors. Local companies without technology expertise typically form strategic partnerships with IT service providers.

In Australia, the largest IT service companies include: HP/EDS (combined revenue of approximately USD3.8 billion), IBM (USD3.6 billion), CSC (USD1.2 billion), Unisys (USD700 million), and Fujitsu (USD600 million). IT service companies also include major accounting and consulting firms. Major local players include Kaz Computing (Telstra-owned) and AlphaWest (Singtel Optus-owned), each with revenues approaching USD500 million.

Indian integration and service companies, relatively new to Australia, have increased their shares in the local market. These companies include: Tata, Infosys, Satyam, and HCL. These firms have positioned themselves well by buying smaller, local IT services companies.

Best Products/Services

Large Australian companies have already implemented VoIP solutions. Small and medium enterprises will drive VoIP sales into the foreseeable future. Sub-sectors in the IT service industry that may experience growth include: IT infrastructure library (ITIL), corporate governance and compliance, storage over IP, fixed wireless broadband, document management, and wireless local area networks (LANs). Demand for IT security services show little sign of abating.

Opportunities

The Federal Government is planning to spend approximately US$30 billion rolling out a high-speed broadband network across Australia. Roll-out of the National Broadband Network (NBN) has started with sections of the Tasmanian population already enjoying high-speed Internet connections. The mainland Australia NBN project is in an evaluation phase, and it is unclear when the full implementation will take place. With a cost of US$35 billion, the NBN is one of the largest infrastructure projects undertaken by the Australian government. Excellent opportunities exist for U.S. vendors of networking equipment, and consulting services when the project goes ahead.

Trade Shows

CeBIT Australia 2010
Date: May 24-26, 2010
Location: Sydney Convention Exhibition Centre, Darling Harbour
Website: http://www.cebit.com.au

AusCERT Asia Pacific Information Security Conference 2010
Date: May 16-21, 2010
Location: Crowne Plaza, Royal Pines Resort, Gold Coast
Web: http://conference.auscert.org.au/