IBM’s huge year in the Federal Government ICT market saw it eclipse its nearest competitor by a massive $243m. IBM ranked 1st ahead of Telstra in 2nd place and Unisys in 3rd in Intermedium’s annual ranking of the Top 100 ICT suppliers to the Federal Government.
Telstra’s position in 2006-07 was unchanged from last year, but the big improver was Unisys. It rocketed 77 places up the rankings (from 80th in 2005-06) due to two big contracts at DIAC. Its 3rd placing has been achieved without the inclusion of an expected contract to outsource regional IT service delivery for 460 Defence bases and sites, announced in January 2007, but not yet signed.
Commander Group jumped from 24th in 2005-06 to 6th in 2006-07, predominantly due to the inclusion of Volante’s results (which were reported separately in the previous year). In other notable moves, Mincom rose from 29th to 8th.
Announcing the Top ICT Suppliers at Intermedium’s State of the Market 2007 briefing in Canberra last week, Intermedium Director, Judy Hurditch suggested that Intermedium is increasingly certain that the final results for 2006-07 will show a downturn in the total value of Federal Government ICT contracts.
It is too early to say by just how much, however, it is very clear that there has been a marked downturn in Defence. This is most likely to be due to the Defence Management Review and the absence of a permanent CIO than any reduction in budget.
As in the previous years, the market was highly polarised with almost half (48.5%) of the total market accounted for by 73 contracts, each worth over $5m. Between them, IBM, Telstra and Unisys accounted for almost a third (32.5%) of total new contract value and the Top 25 suppliers took 65% of the market.
Intermedium's Top 5 for 2006-07:
2006-07 Ranking Company Value of contracts
1. IBM 661.8m
2. Telstra 218.3.m
3. Unisys 158.8m
4. CSC 154.7m
5. Optus 123.8m
These rankings are based on AusTender Contracts Reported data as at 30 September 2007. More information about the supplier rankings and detailed information about the Federal Government ICT market are available in Intermedium’s Market Highlights Report 2006-07.
Intermedium’s analysis of the 2006-07 Federal Government ICT market data shows that:
- There was a significant downturn in contracts within the Department of Defence
- Defence’ share of the market dropped to 25% in 2006-07
- The number of ICT contracts fell by approximately 15%
- The average value of contracts rose to more than $256,000, compared with $185,000 the previous year
- The only growth in the market has been in IT Services