EDS now top dog in downturn among Federal Government ICT suppliers

By Stan Beer
Sunday, 02 November 2008 14:26

Government Tech Policy

EDS has had a boom year in the Federal Government market, enabling the recently acquired ICT services provider to snatch the top supplier ranking for the first time, according to government sales advisory firm Intermedium. Despite a market downturn, the 2007-08 year has seen EDS climb back into its traditional berth in the top 3, while some of the biggest names have dropped way down the list.

According to Intermedium, EDS, which was acquired by HP for US$13.9 billion in May this year, netted AUD$333 million in Federal Government contracts in 2007-08, catapulting it from 12th place in 2006-07 to number one. Its ranking in 2007-08 returns it to the ‘Big Three’ position it has typically held in previous years.

Meanwhile some of the biggest ICT suppliers in the Federal Government game have been knocked of their respective perches, according to Intermedium.

IBM, which enjoyed the top ranking in the last two years, is now in fourth place. Others dropping down the rankings were Mincom, (which slips from 8th place in 2006-07 to 25th place in 2007-08), CSC, (from 4th to 8th place), Paxus (from 5th to 11th place), and the former Commander Group, (which jumped from 24th in 2005-06 to 6th in 2006-07, but is now back in 16th place.)

Telstra, a perennial "Big Three" place holder maintained its 2nd place ranking for the third year in a row on the back of major contracts for telecommunications services signed with Defence, DMO, ATO, Centrelink and DEEWR. Unisys, which rocketed 77 places up the rankings in 2006-07, (from 80th in 2005-06) due to two big contracts at DIAC, is now in 3rd place.

According to Intermedium Head of Research, Tim Conway, 2007-08 has not been a good year overall for Federal ICT suppliers, with a significant slowdown from the previous year.

"Despite a marked downturn in the total value of Federal Government ICT contracts this year, Government activity is still strong in some sectors," Mr Conway says.

CONTINUED Page 2