TECH SUPPLIER Nov 2019 - Market Presentation - Doc # AP45650519

1H19 Country Report on IT Services — Australia

By: Chayse GortonMarket Analyst, IT Services

On-line Presentation


This IDC Presentation provides a detailed analysis of the market and competitive landscape in IT services in Australia from January to June 2019 (1H19). It covers the market size movements and growth trends in each of the macromarkets (i.e., project-oriented services, managed services, and support services) as well as the key industries such as finance, manufacturing and resources, public sector, distribution and services, and infrastructure. The report also provides a market and vendor analyses of 3rd Platform technologies as the key market drivers. The competitive analysis section includes key strategies and activities of global and local IT services providers in the market.

The data and insights within this presentation are a part of the "Asia/Pacific Semiannual Services Tracker" research that covers 14 foundation markets across 14 Asia/Pacific countries.

The Reserve Bank of Australia lowered Australia's interest rate to a record low 1.0%. Low interest rates promote greater economic activity in Australia. The low interest rate environment provides the necessary fundamentals to encourage procurement of IT services by Australian companies.

There is a growing preference for organisations to be platform-agnostic. Hence, Australian organisations are upskilling to facilitate the utilization of multiple platforms. This will help organisations gain the ability to manage, orchestrate, and integrate multiple solutions from a variety of public cloud providers.

As the adoption of hybrid cloud grows, organisations are finding that there is a growing amount of north–south traffic on their network. Organisations that manage their network internally are facing visibility challenges, as many existing solutions are not adequate to manage a hybrid network. This will contribute to more organisations outsourcing network management to vendors equipped with specialized skills.

Technology buyers are leaning toward purchasing end-to-end services. These generally start in the project space and transition to a managed services agreement. This trend is prominent as Australian organisations often gain guidance regarding technology investment from their primary service provider.

Organisations are exploring integrating automation and AI capabilities into application life-cycle management activities. One of the key challenges in adopting automation is overcoming the difficulty of developing a business case. A lack of skills makes executing on the automation project even more challenging.

For low-complexity application projects, organisations are increasingly turning to low-code software. However, this is placing minimal pressure on the application development market as uptake of DevOps is immature; and often, custom work is driven by addressing functionality gaps in commercial off-the-shelf solutions (COTS). In contrast, organisations are increasingly taking specialized application development services from the market, which is helping to drive the growth of the market.


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