Australian firms spend more on IT outsourcing

 

Cloud cannibalises traditional infrastructure services.

Australian firms are expected to spend about $7.5 billion on IT outsourcing services this calendar year, according to analyst firm Gartner.

The figure represents a compound annual growth rate of 3.8 percent, Gartner vice president and distinguished analyst Rolf Jester told iTnews.

"It's still above GDP growth, so it's healthy, it's sustainable," he said. "It's not the sort of growth rates of decades ago but it's pretty good."

Jester identified a shift in the way Australian businesses consumed outsourced IT, with cloud-based infrastructure services beginning to cannibalise traditional infrastructure outsourcing.

Australian firms are expected to spend $235 million on cloud infrastructure services, such as infrastructure-as-a-service, this calendar year.

Although the figure represented only a small percentage of the total $7.5 billion IT outsourcing outlay, cloud infrastructure services spending was "growing by nearly half every year", Jester said.

That growth was expected to continue until at least 2016.

"We're then talking about a much more substantial proportion of the total [IT outsourcing market]," Jester said.

Cloud services could also begin eating into the data centre outsourcing market. Jester said customers in that space were already looking "beyond co-location" to managed infrastructure.

"They're [now] beginning to say that when it comes time to think about their next phase of sourcing they want to consider a cloud option," he said.

"They're not necessarily switching [everything] to Amazon, but they're considering other steps along the way such as infrastructure utility [compute services] or virtual private cloud."

Copyright © iTnews.com.au . All rights reserved.


Australian firms spend more on IT outsourcing
 
 
 
Top Stories
Meet FABACUS, Westpac's first computer
GE225 operators celebrate gold anniversary.
 
NSW Govt gets ready to throw out the floppy disks
[Opinion] Dominic Perrottet says its time for government to catch up.
 
iiNet facing new copyright battle with Hollywood
Fighting to protect customer details.
 
 
Sign up to receive iTnews email bulletins
   FOLLOW US...
Latest Comments
Polls
In which area is your IT shop hiring the most staff?




   |   View results
IT security and risk
  25%
 
Sourcing and strategy
  12%
 
IT infrastructure (servers, storage, networking)
  22%
 
End user computing (desktops, mobiles, apps)
  15%
 
Software development
  26%
TOTAL VOTES: 329

Vote
Would your InfoSec team be prepared to share threat data with the Australian Government?

   |   View results
Yes
  57%
 
No
  43%
TOTAL VOTES: 136

Vote