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Nov 2017 - Market Presentation - Doc # AP43204617

1H17 Country Report on IT Services — Australia

Author: Lydie Virollet
Market Analyst
On-line Presentation


This IDC Presentation provides a detailed analysis of the market and competitive landscape in IT services in Australia from January to June 2017 (1H17). It covers the market size movements and growth trends in each of the macromarkets (i.e., project-oriented, outsourcing, and support and training services) as well as the key industries, such as finance, manufacturing and resources, public sector, distribution and services, and infrastructure. The report also provides a market and vendor analysis of 3rd Platform technologies as the key market drivers. The competitive analysis section includes key strategies and activities of large global and local IT services providers in the market.

The data and insights within this presentation are a part of the "Asia/Pacific Semiannual Services Tracker" research, which covers 14 foundation markets across 14 Asia/Pacific countries.

As products and services become more personalised, organisations that have gone through the route of pilot projects and enterprises learning now understand the scope is larger; there is a growing need for digital strategies that can remake or launch whole new businesses, products, or service systems, business models, and new forms of operations. In a survey of large enterprises in Australia in IDC's 2017 Digital Enterprise Survey, changing critical business processes and revamping product systems to incorporate digital offerings, innovation, and agile design were identified as the most relevant consulting skills that an SP needs to bring to the table.

Outsourcing remains the foundation market that has the largest revenue in the Australian IT services sector and is experiencing a steady growth because of the lack of relevant skills in the Australian workforce. Similarly, project-oriented contracts are experiencing a strong growth, mainly around digital transformation.

Cloud services have become more distributed, trusted, intelligent, industry- and workload-specialised, and channel-mediated. These significant changes in what clouds can provide in support of the rising digital transformation (DX) economy will greatly expand use cases and market opportunities. Increasingly, the massive investment in legacy on-premise infrastructure and legacy-outsourced infrastructure can now be cost-effectively migrated to either on-premise private cloud or hosted public cloud (HPC).

Internet of things (IoT) is increasingly becoming one of the top initiatives that organisations adopt in relation to their digital journey. This market is being driven by the organisations' need to capitalise on new technologies, such as connected devices, sensors, intelligent embedded systems, and artificial intelligence. Increased investments by the government in smart nation initiatives as well as a growing demand from the manufacturing, energy, utilities, transportation, and healthcare industries are also driving growth. The real value of IoT lies in its ability to combine generated data for deeper insights, real-time decision making, and generating new revenue streams. IoT solutions are significantly impacting every industry, creating new business models and new sources of operational efficiency.