Aussie businesses spend big on software

Australian businesses spent $3.1 billion on software in the June quarter, an 8 percent jump on the same period last year and a new local record for software spend.

Australian software spending has been on the rise in recent years, according to seasonally adjusted gross domestic product data released by the Australian Bureau of Statistics, which reveals a steady climb in recent years. 

In June 2012 Australian businesses spent $2.9 billion on software products, and $2.7 billion in June 2011. The three months prior to June 2013, private software spend sat at $3 billion. 

Outsourced IT popular

The ABS also recently released its business use of IT data for the year ended June 30 2012.

It found Australian businesses are more inclined to contract out their IT support, with an average 32 percent of businesses handing IT support to contractors.

Over 21 percent direct IT support via internal IT specialists, 22 percent to internal non-IT specialists, and 18 percent relying on their hardware and software providers for IT support.

Twenty-four percent of businesses reported no IT support arrangements.

Businesses employing more than 200 staff were three times more likely to have contracted IT support than smaller companies with up to four employees. 

Mining and financial and insurance services companies were the largest users of contracted IT support, followed by wholesale trade and administration and support services.

Information media and telecommunications companies were the biggest users of internal IT specialists, followed by professional scientific and technical services businesses, and rental, hiring and real estate companies.

Construction companies were most likely to report having no formal IT support, as were agriculture, forestry and fishing organisations. 

For internal business processes, 86 percent of surveyed businesses use IT in some form in accounting processes, 52 percent for production processes, 77 percent for invoicing, and 65 percent in human resources and payroll.