Telstra has revealed the addition of almost one million new mobile services in the six months to December 2011, but Sensis revenues plummeted 24 percent in 12 months.
IT outsourcing services continue to be in demand from Australian businesses looking for cost efficiencies in the economic downturn, with a combination of onshore, nearshore and offshore outsourcing delivery models from vendors expected to be more prevalent as the market matures.
Last year the Australian IT outsourcing services
market continued its strong performance, reaching almost $6.5 billion
dollars by the end of December, and market analysts IDC say this growth
trend has continued in 2009 with key contract wins by vendors early
this year, including a billion dollar-plus outsourcing deal with
Telstra.
IDC in its latest report on the Australian ITO market says the market
growth has been fuelled by the top 10 outsourcing vendors and there
have been some major changes in position at the top tier level through
both organic growth and vendor acquisition.
IDC associate market analyst for the ANZ IT services market, Adam Lee,
cites HP's “leapfrogging-growth” achieved through its EDS acquisition
as one of the significant changes in the top tier, and he says several
other key vendors displayed strong organic growth in 2008, including
IBM, Accenture and Datacom.
Lee also says that market concentration at the top tier increased, with
the 10 largest vendors representing 51.8% of the total ITO marketshare
in Australia in 2008, up from 47.4% in 2007.
According to Justin Ee, co-author of the report and associate analyst
for IT services at IDC, the firm continues to see market demand for IT
outsourcing across the forecast period.
Ee says this is demonstrated by key contract wins early this year,
including Telstra's $1.2 billion 10-year network management contract
with the Commonwealth Bank, Optus’ $500 million, five-year network
management deal with ANZ Bank, and Fujitsu's $200 million, five-year
desktop management for Qantas Airways.
“The ongoing effects of the global financial crisis will continue to
drive more organisations to seek cost efficiencies through ITO
activities,” Ee forecasts, and he says that the use of blended
onshore/nearshore/offshore delivery models will also increase as the
vendors' maturing global sourcing strategies coincide with a period of
“increased acceptance of more cost-effective service delivery modes.”
David Bass
| For the fourth year in a row, IDC has placed content security provider Websense (NASDAQ: WBSN) at the top of the IDC Worldwide Web Security 2011 –…
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