Australian government IT spend hit $5.8bn in 2014

ICT spending by the Australian government reached $5.8 billion in 2014, representing 8.5% of the nation's total ICT spend, according to IDC.

Spending by Australian government organisations is forecast to grow to $6.2 billion by 2018, with growth driven by investments aiming to drive consolidation, cost savings and efficiency gains.

IT services represents the largest spending category, valued at $2.75 billion, but software is expected to display the strongest 5-year CAGR growth at 7%.

State governments are making ICT a central part of their service transformation plans and all state governments have taken big steps towards increasing cloud investments. Most states have cloud-first policies in place.

But most state governments are also taking more time to re-evaluate their cloud-first investments due to operational and organisational complexities that must first be addressed. IDC said this highlights the need for greater IT procurement accountability and transparency.

Investments in smart cities are also increasing, albeit at a slower pace compared to peer cities elsewhere in APAC.

Another critical area of focus will be improving cybersecurity in the wake of recent security breaches.

"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," IDC market analyst Bonnie Li commented.

"Understanding how these technologies can support cost savings through process change, transformation road maps and education across the organisation is critical."

Image courtesy of TradingAcademy.com under CC.