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 services market will slow from 2008 through to 2010 as a result of the current world economic crisis. The Australian Federal Government is the largest public sector client of the IT services industry. In 2007, the Federal Government allocated 50 percent of its 200 tenders for IT services. Government agencies that spend the most on IT services include: Department of Defense, Australian Taxation Office, Centrelink, Veterans Affairs, Australian Customs, Medicare, and Department of Human Services.

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 USD3.5 billion), IBM (USD3.2 billion), CSC (USD1 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

Australia lags internationally in terms of speed and cost of broadband. There are approximately 5.4 million broadband subscribers and 2 million dial-up subscribers in Australia. The Federal Government plans to spend USD3.4 billion on a National Broadband Network (NBN). This will provide 98% of Australian homes and businesses with a download speed of 12 mbps via open access networks. The Federal Government also plans to spend USD180 million to fund the Australian Broadband Guarantee. This policy will subsidize internet services in remote areas. The NBN roll-out and the Australian Broadband Guarantee will be an opportunity for U.S. vendors of broadband equipment and solutions.

Trade Shows

CeBIT Australia 2009
Date: May 12 – 14
Location: Sydney Convention & Exhibition Centre, Darling Harbour
Website: http://www.cebit.com.au

The U.S. Commercial Service will organize a U.S. Pavilion in CeBIT Australia 2009 to provide a cost-effective platform for American companies to introduce their products and technology. We encourage companies new to the Australian market, as well as those with established distributor relationships, to participate. For further details about CeBIT and other events in Australia, please visit our website at: http://www.buyusa.gov/australia/en/eventsinoz.html.

AusCERT Asia Pacific Information Security Conference 2009
Date: May 17-22, 2009
Location: Crowne Plaza, Royal Pines Resort, Gold Coast
Email: auscert@N0SPAM.auscert.org.au
Web:  http://conference.auscert.org.au/