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ICT Procurement Trends in Australia

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Product Synopsis

This report presents the findings from a survey of 85 Australian enterprises regarding their approach to Information & Communication Technology (ICT) procurement. The survey investigates the way that Australian enterprises like to purchase technology, as well as the major IT and business objectives influencing their IT investment strategies.

Introduction and Landscape

Why was the report written?
To highlight the criteria on which Australian enterprises select their ICT providers as well as the roles which have influence while making ICT purchasing decisions.

What is the current market landscape and what is changing?
Australian enterprises are expecting growth in their ICT spending in 2013 and their preference towards hosted services is also gaining traction.

What are the key drivers behind recent market changes?
Kable believes that the acceptance of hosted services amongst Australian enterprises is expected to grow as hosting delivers significant cost savings.

What makes this report unique and essential to read?
Kable Global ICT Intelligence has invested significant resources in order to interview CIOs and IT managers about their ICT Procurement. Very few IT analyst houses will have interviewed 80+ ICT decision makers in the Australian market in H2 2012.

Key Features and Benefits

Provides insights into Australian enterprises’ preferred buying approaches.
Comprehend the business objectives that Australian enterprises are looking to achieve through their IT investment strategy.
Appreciate the IT objectives that Australian enterprises are looking to achieve through their IT investment strategy.
Understand the factors that are influencing Australian enterprises’ decision to select an ICT provider.
Understand which organizational roles influence ICT purchasing decisions and signing off budgets.

Key Market Issues

Most Australian enterprises prefer to buy technologies direct from suppliers and then deploy them on site rather than hosted, primarily because of the confidentiality of the data or legacy systems already in place.
Kable believes that the improving economic conditions will have a positive effect on the Australian ICT market, which will be primarily driven by upcoming government contracts and regulatory requirements in the financial services sector.
The use of IT to support revenue growth is currently rated at the lower end of the IT objective list with an average rating of X on the scale of 1 to 4.
The indication of increasing ICT complexity is clear as very few enterprises (just X% of respondents) state that their ICT infrastructure is entirely standards based, where they operate with a small number of interoperable vendor solutions. Therefore, Kable believes that it is imperative for ICT vendors to showcase how their products and services meet enterprises’ requirements without adding to their ICT complexity.
The decision with regards to ICT investments is mostly influenced by higher authorities such as the CIO and the CEO. ICT vendors must understand the views of CEOs and CIOs with regards to technology investment decisions, and must work towards developing a relationship with these executives to enhance their business opportunities.

Key Highlights

Australian enterprises give increasing customer satisfaction and raising efficiency the highest average ratings of X on a scale of 1 to 4.
The survey responses reveal that the IT objectives of meeting internal service level agreements and aligning IT with overall business goals are at the top of enterprises’ lists, with average ratings of X on a scale of 1 to 4.
Australian enterprises give prime importance to leading-edge technology and specific functionality when choosing an ICT provider with an average rating of X on a scale of 1 to 4.
The CIO is the most important authority influencing ICT purchasing decisions amongst Australian enterprises, which is validated in the survey where enterprises rate CIOs as the most influential with an average rating of X on a scale of 1 to 4, followed by the CEO (X).
According to Kable’s survey, X% of Australian enterprises state that they operate with either somewhat complex or very complex ICT infrastructure.

For more information kindly visit :
ICT Procurement Trends in Australia - Enterprise ICT Investment Plans to 2013


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