As Budget season arrives, we are reminded that Federal Government ICT is a highly concentrated market.
In 2008-09 the Top 25 suppliers accounted for 73.1% of the market by value.
This is an even more concentrated market than was seen in 2007-08 when the Top 25 suppliers accounted for 63.4% of the market.
Intermedium’s Federal Government ICT Market: Supplier Overview Report 2008-09, revealed a continuing downward trend in total contract numbers.
EDS was the top ranked supplier in 2008-09 with $764.9 million in contracts, followed by IBM and then Optus. These suppliers all signed multi-year managed services agreements in 2008-09:
- EDS with the Australian Taxation Office (ATO) and the Department of Agriculture, Fisheries and Forestry;
- IBM with Medicare and the Department of Health and Ageing; and
- Optus with the ATO and Department of Immigration and Citizenship.
8 of the top 10 suppliers experienced an increase in average contract value echoing the broader market trend towards a smaller number of higher value contracts.
Intermedium’s Federal Government ICT Market: Supplier Overview Report 2008-09 is available now. Contact sales on (02) 9955 9896.