This time last year in the medium, we reported the number of Federal ICT contracts published in 2007-08 was “the lowest in five years”. One of the stated aims of the Minister for Finance and Deregulation (Finance), Lindsay Tanner, is to consolidate contracts, and it appears this new policy may be bearing fruit.
Intermedium’s preliminary data for the 2008-09 financial year shows a further decline in the total number of ICT contracts - down almost one third on the number reported at the peak in 2005-06.
But while the number of ICT contracts is down in 2008-09, the average value of each contract is rising sharply. Average value has increased by more than 60 per cent in the period since 2005-06, and more than 50 per cent over the previous 12 months.
In part, this reflects the shift towards fewer, higher value transactions as agencies move to more strategic sourcing approaches.
Intermedium’s ICT contracts data also shows there is considerable variation by agency in the number of contracts published each year. This is in keeping with the cyclical nature of much ICT procurement, with contracts often in place for 3-4 years.
Preliminary analysis of 2008-09 data shows a significant decline in the number of ICT contracts posted by several of the largest agencies, while a number of other large agencies, including Immigration (DIAC), recorded an increase in the number of ICT contracts.
The Defence portfolio (including DMO) remained consistent overall, with a decline in ICT contracts in Defence offset by an increase in the number of DMO contracts.
The trend toward fewer contracts suggests competition will intensify as ICT suppliers jostle for the reduced opportunities.
Intermedium will announce the full 2008-09 Federal ICT market results in its Federal ICT Market Year in Review 2008-09 in Canberra 28 October. We'll announce the Top Suppliers overall and in specific categories and also present the Froggy Awards, recognising up and coming suppliers. This is an event not to be missed for anyone involved in the Federal ICT market!
Incorporating the Leaping Frog Awards
Acknowledging companies achieving the fastest growth in
ICT sales to the Federal Government over 3 years
- Which agencies were the largest buyers of ICT?
- How did your performance compare with that of your competitors?
- Which technologies are on the rise?
Cost $250 (inc GST) per person
$195 (inc GST) Government Employees
$1600 (inc GST) Table of 8 (with Company branding)
Wednesday 28 October 2009, 07:30-09:30am
Hotel Realm, Barton
For printable version click here.
For further information please contact sales on (02) 9955 9896.
Breakfast Briefing Packages available! More information here