The Australian government ICT spend is set to grow to a 1.7 per cent five-year compound annual growth rate (CAGR) in 2017, according to analyst firm, IDC.
In 2014, the Australian government’s ICT spending reached $5.8 billion, representing 8.5 per cent of the total ICT spend. IDC forecasts it to grow to $6.2 billion by 2018. It also mentioned IT services represents the largest spending category, valued at $2.75 billion. However, the strongest five-year CAGR growth is said to be for software, at 7.0 per cent.
IDC claimed, in a report, that IT investments aiming to drive consolidation, cost savings and efficiency gains will continue to be the primary focus, but improving service delivery through third platform investments – particularly analytics and mobility - is of increasing importance.
IDC market analyst, Bonnie Li, said although overall ICT budgets are tight, Australian government organisations need to take advantage of the long-term benefits and cost saving opportunities offered by cloud and mobility for their organisations.
“Understanding how these technologies can support cost savings through process change, transformation road maps and education across the organisation is critical,” she said.
In addition, IDC reported the Australian state government organisations have placed their ICT strategies centrally within their service transformation roadmaps; but their progress varies with Queensland, Victoria, and New South Wales leading the race in terms of transformation maturity and strategic agility.
“All state governments have taken big steps towards driving Cloud investments within their overall ICT stack over the last 12 months and Cloud solutions are gaining momentum, with Cloud-first policies in place for most states.
“Notably, despite these exiting plans for eService transformations, most state governments are taking more time to re-evaluate their Cloud-first investments due to the immediate operational and organisational complexities that needs to be addressed, thereby highlighting a greater impetus for IT procurement accountability and transparency,” Li said.
She added that recent security breaches are placing pressure on government bodies to enhance cyber and data security measures across all government and citizen datasets.
IDC government insights research manager, Gerald Wang, claimed this will continue to be a critical area of focus for governments that deal with customer data.
“While ICT cost containment weigh strongly for current Australian federal government priorities, it is important to note that investments for future service transformations and sustainability are long-term priorities not to be neglected.
“Beyond transparency and accountability prerogatives, public sector agencies are also accountable for boosting domestic socioeconomic growth through innovative and sustained ICT investments," he added.