Australian IT services revenue has been forecast to grow from $20 billion during 2019 to $24 billion by 2023 and it’s all thanks to security and the growth of hybrid-cloud.
According to new research from IDC Australia/New Zealand, revenue for Australian security-related services is expected to grow at a five-year compound annual growth rate (CAGR) of 19 per cent to 2023, responsible for 20 per cent of all IT services revenue share in 2023.
By comparison the non-security IT services market is predicted to grow at a five-year CAGR of 2 per cent in the same time frame.
The five year CAGR of 19 per cent, according to Chayse Gorton, A/NZ market analyst for IT services and blockchain at IDC, was underpinned by growth in hybrid-cloud.
"The growth in hybrid-cloud adoption is a key driver making Australian organisations aware they must tackle security from a holistic perspective, moving beyond perimeter-based security strategies to data-centric ones," Gorton said.
“The challenge of attracting and retaining security talent contributes to many organisations outsourcing security operations. However, Australian organisations are evolving from a total security outsourcing strategy towards strategic security sourcing, including co-sourcing for security."
IDC predicted particularly Australian organisations will utilise security vendors for consulting and professional services purposes, as the research firm claimed “they tend to understand the importance of security by design and trust by design”.
Additionally, security services are within the top external service providers organisations will utilise in the near-term, on par with data analytics services.
IDC research also found Australian organisations are mostly satisfied with security service providers, but this is no reason for security services vendors to sit on their laurels, according to Gorton.
"It is important for security services vendors to communicate their differentiators. This includes risk mitigation capabilities, detection capabilities, and responsiveness, as a way to stand out from competitors," Gorton said.