In 2014, the Australian government’s ICT spending reached A$5.8 billion, representing 8.5% of the total ICT spend. It is forecast to grow to A$6.2 billion by 2018. IT services represent the largest spending category valued at A$2.75 billion, but the strongest five-year CAGR growth is for software at 7%.
"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. Understanding how these technologies can support cost savings through process change, transformation road maps and education across the organisation is critical," says IDC Market Analyst Bonnie Li.
Australian state government organisations have given their ICT strategies priority within their service transformation roadmaps. However, their progress varies with Queensland, Victoria, and New South Wales leading the race in terms of transformation maturity and strategic agility. Smart city investments are developing, although at a slower pace as compared to peer Asia Pacific cities. These investments will be an increasingly important way to manage operational efficiencies while delivering improved service capability.
All state governments have taken big steps towards driving cloud investments within their overall ICT stack over the last 12 months and cloud solutions are gaining momentum, with cloud-first policies in place for most states. Despite these exiting plans for e-service transformations, most state governments are taking more time to re-evaluate cloud-first investments due to the immediate operational and organisational complexities that needs to be addressed, thereby highlighting a greater impetus for IT procurement accountability and transparency. In addition, security breaches are placing pressure on government bodies to enhance cyber and data security measures across all government and citizen datasets. This will continue to be a critical area of focus.
"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. Understanding how these technologies can support cost savings through process change, transformation road maps and education across the organisation is critical," says IDC Market Analyst Bonnie Li.
Australian state government organisations have given their ICT strategies priority within their service transformation roadmaps. However, their progress varies with Queensland, Victoria, and New South Wales leading the race in terms of transformation maturity and strategic agility. Smart city investments are developing, although at a slower pace as compared to peer Asia Pacific cities. These investments will be an increasingly important way to manage operational efficiencies while delivering improved service capability.
All state governments have taken big steps towards driving cloud investments within their overall ICT stack over the last 12 months and cloud solutions are gaining momentum, with cloud-first policies in place for most states. Despite these exiting plans for e-service transformations, most state governments are taking more time to re-evaluate cloud-first investments due to the immediate operational and organisational complexities that needs to be addressed, thereby highlighting a greater impetus for IT procurement accountability and transparency. In addition, security breaches are placing pressure on government bodies to enhance cyber and data security measures across all government and citizen datasets. This will continue to be a critical area of focus.
"While ICT cost containment weighs 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," says IDC Government Insights Research Manager Gerald Wang.
Interested?
Get more details from Document #AU251011, Australia Government ICT Market 2014–2018 Forecast and Analysis.
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