Australian IT services market to hit $23.4bn by 2023

The Australian IT services market grew to $19.5 billion last year and is on track to grow to $23.4 billion by 2023, according to IDC.

The research firm has slightly increased its five-year forecast for growth in the market — the company now expects a 3.8% CAGR through to 2023, up from the previous forecast of a 3.7% CAGR through to 2022.

IDC expects each of the three core IT services primary markets — project-oriented services, managed services and support services — to experience growth over the forecast period, with project-oriented services achieving the fastest CAGR.

Within the project-oriented segment, demand is being driven in part by organisations seeking to optimise and modernise key business systems.

Another key driver is organisations’ efforts to pursue competitive advantage through deployments of cloud, mobility, big data and social technologies, as well as emerging technologies such as AI, IoT and robotics.

IDC ANZ Market Analyst for IT services Chayse Gorton said IT service vendors seeking to capitalise on the growing market must strive to enable organisations to execute on their enterprise-wide digital strategies.

“End users will look to IT service providers for consultation on next-generation technologies. They will seek assistance in using these technologies to create new offerings, business models and relationships,” he said.

Image credit: ©Dario Lo Presti/Dollar Photo Club

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