Australian IT services revenue is expected to reach $US21 billion by 2005, according to industry analyst Gartner Dataquest.
The analyst forecast Australian IT services to reach $12.1 billion in 2001, up 12.7 per cent over 2000 revenue of $10.7 billion.
While the global economic slowdown and the threat of terrorism are expected to stunt growth in 2002, demand will continue to experience double-digit growth from 2003 to 2005, the analyst claimed.
"Following 2002, increased confidence in the economy and business will present vendors with an opportunity to benefit from renewed demand among end users of IT services based on exploiting technology innovations," said Rolf Jester, a Gartner research director.
According to Jester, from late 2002, networking, security and telecommunications technology-related services, and e-business initiatives will be strong drivers of demand.
Growth in the Asia-Pacific services market, which is currently double the world average, will continue in the foreseeable future, the analyst said.
According to Gartner, development and integration, which is one of the largest segments within the IT services industry, will have almost doubled by 2005 to $4.1 billion.
As enterprises increasingly turn to external suppliers, the business process and transaction management services sector will also experience above average growth, Gartner forecast.
While economic and political unrest is expected to have the most detrimental impact on consulting, individual consulting areas such as security, business, continuity planning, networking and e-business-related work remain bright spots in the future, the analyst said.