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EDS Seizes Top Spot Amongst Federal ICT Suppliers

by Staff Writers •
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EDS’ successful year in the Federal Government market saw it narrowly edge out the second place holder to seize top spot in Intermedium’s Top ICT Suppliers rankings this year.

EDS, which was placed 12th in the 2006-07 rankings, netted $333 million in Federal Government contracts in 2007-08. Its ranking in 2007-08 returns it to the ‘Big Three’ position it has typically held in previous years.

Telstra, another perennial ‘Big Three” place holder maintained its 2nd place ranking for the third year in a row on the back of major contracts for telecommunications services signed with Defence, DMO, ATO, Centrelink and DEEWR. Unisys, which rocketed 77 places up the rankings in 2006-07, (from 80th in 2005-06) due to two big contracts at DIAC, is once again in 3rd place.

IBM, which enjoyed the top ranking in the last two years, is now in fourth place. Others dropping down the rankings were Mincom, (which slips from 8th place in 2006-07 to 25th place in 2007-08), CSC, (from 4th to 8th place), Paxus (from 5th to 11th place), and the former Commander Group, (which jumped from 24th in 2005-06 to 6th in 2006-07, but is now back in 16th place.)

Despite a marked downturn in the total value of Federal Government ICT contracts this year, Government activity is still strong in some sectors. Companies with a clear market focus, targeted strategies and flawless execution continue to do well. Typically, these companies identify opportunities early and focus their efforts to win business.

EDS owes its top place in large part to the ongoing infrastructure outsourcing services it provides to ATO and the Child Support Agency (now subsumed by Department of Human Services). EDS also did some specialist IT Professional services work at DIAC and Defence. More recently, it won the redevelopment of the portal, demonstrating its capabilities extend well beyond outsourcing.

Unisys had a major win providing Defence with regional ICT support services, as well as some specialist systems integration and professional services at DIAC and AFP. It continues to do well supporting Customs in some areas where Unisys hardware remains deployed.

This year the market is more polarised than ever, with the top four suppliers (accounting for 73% of the market value) taking 46% more business than the remaining 16 in the Top 25 suppliers list.

Intermedium's Leader Board Top 5 for 2007-08

  1. EDS
  2. Telstra
  3. Unisys
  4. IBM
  5. KAZ

These rankings are based on Intermedium’s analysis of AusTender Contracts Reported data as at 30 September 2007. This and other more detailed market information is contained in Intermedium’s Federal Government ICT Market Report 2007-08. The report shows that following strong growth in recent years, the value of the market slowed by more than 16% during the 2007-08 financial year.

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