IDC Revises IT Value Forecast Down
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IDC expects the overall ICT business market in Australia to reach a value of almost $47 billion by 2012, down from the 2008 forecast of $48 billion, in a report made available today.

The analysis report titled Australia Vertical Markets 2009-2012 Forecast and Analysis, IDC has revised its verticals forecast compound annual growth rate from 4.0 percent to 3.6 percent over the period 2008 to 2012.

In tough economic times, the natural inclination for companies is to put major transformational initiatives on hold and focus on tactical optimisation of business operations. “However, in this slow ICT spending environment, it’s more important than ever for suppliers to identify and focus their businesses towards key customers, new offerings and new vertical industries that will yield the greatest opportunities in order to make the most of the economic downturn,” said Melissa Martin, Senior Analyst, IT Spending and Verticals.

“Suppliers that push too hard on the brakes will not only limit their viability in the long term but also miss key growth opportunities in 2009,” she added.

 


Ranking of the top vertical markets in Australia in 2009 remains unchanged: Banking, Finance and Insurance at $8.8 billion and 21.1 percent of the business market; Government at  $6,1 billion and 14.7 percent and Communications and Media at $5.3 billion and 12.7 percent.

However, it is the Government, Education and Construction sectors forecasted to experience the fastest increase in ICT investment in the next few years (with respective CAGRs of 6.1 percent, 5 percent and 4.7 percent in the forecast period) as the Government aims to stimulate the Australian economy by increased spending and incentives in these sectors.

The vertical industries that will be the biggest losers in current economic times will be Retail, Transportation and Business Services. A very large part of these industries in Australia produce or sell intermediary goods destined to be consumed by other industries.