By Eleanor Reader
An IDC report has revealed that Information and Communications Technology (ICT) spending across vertical markets within Australia is set to rise from $43,408.6 million in 2012 to $49,452.6 million by 2016.
The report titled ‘Australia Vertical Markets 2012-2016 Forecast and 2H12 Update’ states although the annual growth rate (CAGR) of 3 per cent for the forecast period is strong, the slow growth of Australia’s economy is impacting ICT spending.
“IDC has lowered ICT spending growth due to fiscal consolidation, political uncertainty, the high Australian dollar and at a period close to the end of a mining boom,” said David So, Australian vertical markets analyst for IDC.
ICT spending in Australia’s banking, finance and insurance sectors remains the largest vertical and will exceed the $10 billion mark in 2013, the report states.
The Australian government represents the second largest vertical.
According to report, the government’s ICT spending is mainly focused on generating significant cost efficiencies by deploying cloud-based infrastructure and a whole-of-government approach in its ICT procurement policy.
As a result, IDC forecasts the government’s ICT spending will grow by a CAGR of 3.2 per cent for the forecast period.
The communications and media industry is the third largest vertical, registering the fastest growth in terms of ICT spending with a CAGR of 4.4 per cent for the forecast period.
“We believe that this vertical is the most exposed to disruptive technologies/innovation and thus are required to increase more of ICT spending to mitigate the risk of being disrupted by emerging businesses,” So said.
“When we combine these top 3 verticals in Australia, they together represent half of total ICT spending in Australia.”
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