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IT Services top category in FY 2008-09; ATO top purchaser

by Staff Writers •
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In a market hit hard by the Global Financial Crisis (GFC) and still reeling from the Gershon Review, the IT Services category emerged as the leading category of financial year (FY) 2008-09, taking out 54 % of business in the Federal Government ICT Market, according to Intermedium’s Federal Government IT Services Report 2008-09.

The IT category is broken down into managed services, labour hire, system integration services, software support, business consulting, hardware support and training.

The report revealed year-on-year growth of 16% in the total value of contracts in the IT Services segment from 2007-08, making the value of IT Services contracts 143% higher than in the second largest category, telco services.

Since Intermedium began collecting and analyzing contract data in 2004, the total value of IT Services contracts has grown approximately 40%.  At the same time, the number of contracts has declined by 8%.  The marked trend over these six years is that the Federal Government is issuing larger contracts, but fewer of them and this trend is expected to strongly continue, according to Intermedium’s analysts.

The two sub-categories with the highest aggregate contract value are Managed Services and Labour Hire.  The value of Managed Services contracts was up 60% on 2007-08. 

The top IT Services purchaser by total contract value in FY 2008-09 was the ATO, followed by Defence and Defence DMO. 

The IT Services Top 25 Suppliers list featured managed services suppliers as well as a strong presence of labour hire companies.  There were two new entrants to the Top 25 – Datacom and Logica.   EDS Australia (now HP Enterprise Services) took out the top supplier position.

This is a very brief summary of the information contained in Intermedium’s 100 slide plus PowerPoint (published as PDF). More information >>

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  • Federal
  • IT Services
  • ATO
  • Datacom
  • Defence
  • Defence Material Organisation
  • DMO
  • EDS
  • HP Enterprise Services
  • Logica