Earlier this year, IDC predicted that the Australian IT Services market is expected to have a compound annual growth rate (CAGR) of 3.8 percent through 2023, with Australian IT services revenue pegged at approximately AU$23,438 million in 2023, up from the 2018 estimate of AU$19,410 million.
IDC noted that enterprise-wide digital transformation initiatives continue to be key drivers for IT spending, deeper deployment for cloud, mobility, big data and social, and nascent spending on AI, IoT, and Robotics will achieve the highest CAGR for IT service providers.
That said, market watchers are predicting that Australia’s GDP will likely grow by around 2.5 percent in 2019 and will hold for 2020. It’s clear that 2019 is going to be a challenging year as the global economy slows due to uncertainty caused by the toxic cocktail of Brexit and the US-China trade war.
Maintenance key to minimizing risk
So, how are organizations spending their precious IT budgets? Extrapolating a recent report from Chartis as an indicator of how organizations are directing their budgets, we see financial institutions (FI) increasing their budgets by 5 percent on their risk IT expenditure between 2017 to 2018 (around US$77.8 billion).
To me, this makes perfect sense. Optimizing critical business systems will be a key driver for IT spending, and that means leveraging vendors to “modernize or replace legacy systems.” While there is no doubt that organizations are increasingly shifting to cloud services, most organizations don’t rely entirely on cloud services. The reality is that most companies still use a mix of cloud and on-premise data centers.
In light of the global economic uncertainty, the challenge, and I daresay, the opportunity for organizations, is to leverage IT to move the needle. That’s why I see this as a good time to seize the day—decide where to channel your maintenance and innovation budgets—and embark on the next stage of your DX journey.
That’s where a sound maintenance strategy will help you.
With the right third-party maintenance provider, you can modernize your fleet of IT assets or re-channel them for other uses in the organization, so you can prioritize your budgets for digital transformation projects that propel the business forward.
Curvature expands to better serve the ANZ region
The good news for organizations that wish to do this across Asia Pacific just found in Curvature a partner that’s got an even stronger presence in the region. We just expanded our footprint in Australia, with our main base of operations in Sydney, and a satellite office in Melbourne.
These offices will primarily serve customers in Australia, New Zealand & the Pacific Islands, so companies in these markets enjoy improved 24/7 support for increased speed to service and resolution, and complete IT asset life-cycle management as part of their consolidated IT Strategy.
We’re now closer to you, our customers, than ever with a presence in 12 countries, more than 100 service centers and more than 600 equipment parts locations around the world.
So, what’s your maintenance strategy and how has it helped you in your journey to digitalization?