EDS has become the top Federal Government ICT supplier, according to research company Intermedium.
Intermedium’s Federal Government ICT Market Report 2007-2008 placed EDS ahead of Telstra, Unisys, IBM and Kaz. Unisys was the other big mover of the last 12 months, jumping 77 places over last year.
Intermedium head of research, Tim Conway, said the key to EDS’ success was its ability to capitalise on the incumbency of outgoing contracts.
EDS netted $333 million in Federal contracts in 2007/2008. The company provides ongoing infrastructure outsourcing services to the Australian Taxation Office (ATO) and the Child Support Agency (now subsumed by the Department of Human Services).
It also provides specialist IT professional services work to the Department of Immigration And Citizenship (DIAC) and Defence, and it recently won the redevelopment of the aus.gov.au portal.
Meanwhile, Conway said Unisys’ success was tied to its marketing focus on selling to the department of Defence, where it won a contract providing Defence with regional ICT support services.
Federal spending had been down in the last 12 months, with the value of the market slowing 16 per cent in the 2007/2008 financial year, Conway said.
“The global financial crisis has some bearing, but the downturn of spending is artificially induced as a result of the change of government and review of programs,” he said. “I expect there to be an increase of activity from February/March onwards.”
Conway said all of the top ranked providers were well placed to capitalise on the incumbency of programs and expected increase of spending.
He also highlighted CSG as a potential big mover following its acquisition of Commander’s managed services business.
“CSG was well back in the list before, however Commander was in the top 10, so CSG is now well placed when it comes to renewal applications,” he said.
Commander sits in 16th place for 2007/2008 according to the report.