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Australia/New Zealand IT Services Market Estimated to be US$16.9B by 2011, finds Springboard Research

Market to grow at a CAGR of 6%, on the back of new investments in Datacenters, Remote Diagnostics & Smart Infrastructure

Published On: 3/25/2011
Geography: Australia/New Zealand
Technology: Services

Melbourne, March 25, 2011 – Springboard Research, a leading innovator in the IT Market Research industry expects that the total domestic IT services spending in A/NZ is expected to grow by 5.7% in 2011 over 2010. This is driven by strong momentum for application management and outsourcing services. In the latest Springboard Research report “Australia/New Zealand IT Services Report: 2010”, the market for calendar year 2011 is expected to reach US$16.9 billion, representing little less than a quarter of the overall APEJ (Asia Pacific excluding Japan) IT services market.

A/NZ has the highest proportion of outsourcing services contracts relative to the total IT Services market across APEJ. Outsourcing services contribute about 57% of total IT services spend. While complete outsourcing and BPO deals together constitute over 55% of the total outsourcing services market, application management and application outsourcing contracts are expected to generate the highest growth across the 2010-2015 forecast period.

Datacenter management services and cloud related investments are expected to help the A/NZ IT Services market maintain a healthy 6% growth rate over the forecast period. "Enterprises, particularly in the resource sector, are likely to invest in automation tools and information capturing solutions to manage, monitor and control their assets safely, securely and efficiently ", noted Seepij Gupta, Associate Research Manager, IT Services, Springboard Research.

As a result of a national focus on natural disasters (following the floods in Brisbane, Cyclone Yasi in far north Queensland, the Wellington earthquakes in New Zealand and the 2009 Victorian bushfires), renewed interest in business resilience and recovery is leading to an increased demand for Business Continuity and Disaster Recovery (BCDR) services.

Going forward, Springboard Research expects the IT services market in A/NZ to continue its stable development and maturation process.

Themes of “Collaboration” and “Automation” to Prevail

"Enterprises across the A/NZ region, but most specifically in Australia, have been rapid adopters of new information technologies within the APEJ market", noted Fred Giron, VP - IT Services, Springboard Research. "Post slowdown, an increased number of organizations have started looking at IT as a business enabler over cost and we can therefore expect much tighter linkages between IT and business”, Mr. Giron added.

Springboard Research believes that investments in technologies facilitating collaboration and automation will continue to grow as these help to manage, monitor and control assets (human and IT) safely, securely and efficiently.


About this Report

The Springboard Research report “Australia/New Zealand IT Services Report: 2010” provides a comprehensive outlook of the domestic A/NZ IT Services market in 2010. It analyses the prevalent trends in the IT Services market along with market sizing, forecasts, key service providers with rankings and key IT solutions trends. It also highlights the future “mega trends” that are expected to shape the IT Services market in 2011.            

About Springboard Research

With visionaries others pursue, methods others neglect and ideas others don’t consider, Springboard Research not only seeks to lead an industry – we seek to transform it. Leveraging our pioneering research model and industry thought leaders, Springboard provides greater insight, analysis, and innovation specific to global emerging markets. Working with leading technology vendors, IT professionals, and local channels, Springboard helps our clients lead, rather than follow, market trends.

Springboard has a global presence with research centers in Australia, China, India, Japan, Malaysia, Pakistan, Singapore, the UAE, and the US. We have been acknowledged as an emerging leader and for the last three years been named a “Rising Star” in the global IT market research industry by Outsell, the leading research and advisory firm for the information industry. For more information and access to Springboard’s research, please visit www.springboardresearch.com

Media Contacts

John Brand, Vice President, A/NZ Research
Springboard Research
61 (0) 3902-41703 
[email protected]  

Jonita Dhani, Marketing Executive
Springboard Research
[email protected]  

Frederic Giron, VP, IT Services Research
Springboard Research
[email protected]

Seepij Gupta, Associate Research Manager, IT Services Research
Springboard Research
[email protected]
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