Australian government ICT spending is expected to grow by 1.7 per cent annually through to 2017, reaching $6.2 billion by 2018, according to new figures from analyst firm IDC Australia.
While IT services represents the largest spending category, valued at $2.75 billion, the strongest five-year compound annual growth rate will be for software, at 7 per cent.
The findings are outlined in IDC Australia’s report, Australian Government ICT Market 2014–2018 Forecast and Analysis.
IT investments aiming to drive consolidation, cost savings and efficiency gains will continue to be the primary focus, but improve service delivery through third platform investments – particularly in the areas of analytics and mobility – will be of increasing importance.
“Although overall ICT budgets are tight, Australian government organisations need to take advantage of the long-term benefits and cost saving opportunities offered by cloud and mobility for their organisations,” said IDC market analyst Bonnie Li. “Understanding how these technologies can support cost savings through process change, transformation road maps and education across the organisation is critical.”
Cloud investment has gained momentum in all State Governments over the last 12 months, with cloud-first policies now in place in most States. However despite these plans for eService transformation, many are taking more time to reevaluate their cloud investments due to immediate operational and organisational complexities that need to be addressed, highlighting a greater impetus for IT procurement accountability and transparency.
Recent security breaches have also placed pressure on government bodies to ensure cyber and data security measures are sufficiently robust to protect customer data.
Gerald Wang, research manager, IDC Government Insights, said that Australia government organisations need to be taking the long view.
“While ICT cost containment weigh strongly for current Australian federal government priorities, it is important to note that investments for future service transformations and sustainability are long-term priorities not to be neglected. Beyond transparency and accountability prerogatives, public sector agencies are also accountable for boosting domestic socioeconomic growth through innovative and sustained ICT investments,” said Wang.
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