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Budget Bonanza for Hot Federal ICT Market

by Staff Writers •
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While last week’s Federal Budget saw increased spending on a number of targeted ICT initiatives, the big winners are incumbent IT service providers who are on long term or panel contracts. These will be called upon to support the plethora of new Government programs and initiatives as they roll out.

It is estimated that new programs and initiatives will drive an increase of 5,000 Public Service positions as well as significant increases in contractors and outsourced service provision.

These increases come on the back of an already hot ICT market. Intermedium recently released its detailed assessment of the 2005-06 Federal Government IT Services market. The Report finds that IT Services has grown to a massive industry worth $1.7 billion per annum. Big growth areas were found in Labour Hire (Contractors) at 14%, Managed Services (Outsourcing) at 11%, and Software Support at 16%.

Analysis so far of the 2006-07 financial year, indicates this will also be a big-spending year. The recent Federal Budget announcements now effectively lock in additional growth for future years.

A comprehensive review of Budget press coverage, analysis and its ICT implications is provided below in our ICT News at a Glance section

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Jurisdiction
  • Federal
Sector
  • Policy
Tags
  • federal budget
  • Federal ICT Market
  • ICT Initiatives