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
Toll Group to go Google
Poaches Woolworths project manager.
 
How News Corp's CIO tackled skills in his race to the cloud
What to do when your team’s talents are no longer needed.
 
Photos: How Thodey transformed Telstra
From turbulent Trujillo to Australia's leading telco.
 
 
Sign up to receive iTnews email bulletins
   FOLLOW US...
Latest Comments
Polls
Who do you trust most to protect your private data?







   |   View results
Your bank
  35%
 
Your insurance company
  5%
 
A technology company (Google, Facebook et al)
  8%
 
Your telco, ISP or utility
  8%
 
A retailer (Coles, Woolworths et al)
  4%
 
A Federal Government agency (ATO, Centrelink etc)
  18%
 
An Australian law enforcement agency (AFP, ASIO et al)
  15%
 
A State Government agency (Health dept, etc)
  7%
TOTAL VOTES: 3932

Vote
Do you support the abolition of the Office of the Information Commissioner?

   |   View results
I support shutting down the OAIC.
  27%
 
I DON'T support shutting the OAIC.
  73%
TOTAL VOTES: 1335

Vote