IDC Australia: Cost Cutting and Productivity Improvements Driving Government ICT Spending
19 Dec 2012
Sydney, Australia, December 19, 2012. IDC released a report on 'Australia Government ICT Market 2011 - 2015 Forecast and Analysis', which details IDC's analysis of ICT spending of the federal and state/local government verticals of the Australian ICT market. According to the report, ICT spending within the government sector is expected to reach A$6,481.2 million in 2012, increasing to A$7,053.9 million in 2015 and representing a compound annual growth rate (CAGR) of 2.7% for the forecast period.
According to the IDC report, ICT spending by the Australian Federal Government is expected to be cautious in the next 12 months due to the uncertainty of its ability to deliver a budget surplus of A$1 billion in 2012/13 from a budget deficit of A$44 billion in the previous period. "However, the government is committed to spend on new ICT projects with 30% of the ICT budget allocated to drive expansionary spending as oppose to maintenance spending from the upgrades and renewals of existing products and services." says David So, Australian Vertical Market analyst for IDC.
Based on the report, the government aims to generate significant cost efficiencies by deploying cloud-based infrastructure and a whole-of-government approach in its ICT procurement policy. "The 35 vendors that were selected in the multi use list for the government's Data Centre-as-a-Service (DCaaS) are well positioned to assist the government in achieving the A$1 billion cost savings from the procurement of cloud-based services" Mr So commented.
IDC believes that the Australian government is beginning to gain an appetite (although slower than the private sector) for new generation technologies based on cloud, mobility, social and Big Data. In addition, the leading ICT vendors in these areas will be able to capitalise on the government's ICT expenditure by formulating efficient strategies that can help drive public sector productivity provided that can alleviate the data security concerns. "These ICT growth pillars will not only significantly cut the costs of the government organizations but also will increase productivity and efficiency of the public servants. These productivity improvements should align with its strategic priorities of delivering better service, engage openly and improve government operations" David added.
For more information, contact:
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Alison Te Hira
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