IDC: Australian IT services market growth to reach $15B by 2011

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IDC: Australian IT services market growth to reach $15B by 2011

IT research group, IDC forecasts the Australian services market will grow 4.4 percent (compound annual growth rate). IDC believes the IT services market will be worth $15 billion by 2011.

According to IDC, the IT services market was worth $12.6 billion as of the second half of 2007. With the Australian outsourcing market contributing 50 percent to the total IT services market.

Margaret Banaghan, research manager of IT Services at IDC said, the outlook for both the broader Australian economy and the IT services market remains buoyant. End user organisations are addressing a range of business issues, which are expected to underpin growth in the IT services market over the five year forecast period.

“Executives are turning to IT services firms to assist with issues including Green IT, SOA (Services Oriented Architecture) and Web services, selective sourcing including offshoring and mobility services," said Banaghan.

Mark Stead, commercial director at Australian service provider, PK Business Advantage believes IT services is a very healthy market in Australia.

“The important thing for service providers to remember is you have to be able to differentiate yourself through the services and products you offer,” he said.

Stead claimed there is a need for the IT services market to offer SMB customers services specifically tailored for that sector.

“The SMB customer segment is not being properly addressed. It’s a challenge for a lot of service providers because of legacy issues. New companies like PKBA aren’t stuck with those problems and can tailor flexible packages directly aimed at the customer,” he said.

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