Commonly known as IT consulting, industry firms primarily provide clients with IT expertise. Industry services include writing, modifying, testing or providing user support for software. Industry companies also plan and design computer systems that integrate computer hardware, software, cloud and telecommunications technologies. The industry does not include non-customised software publishing activities.
How is it distributed
How has it been going
What have been the significant changes
37.9% 24% 16.8% 13.6% 7.7%
Computer System Design
The industry derives the highest proportion of revenue from providing computer system design, analysis and programming services. This involves recommending improvements to existing data storage and retrieval systems, databases and computing procedures. Client companies regularly assess their IT operations to reduce costs or access more lucrative markets, and employ consultants to implement changes after recommendations have been made. Over the past five years, the industry has shifted towards providing custom computer systems application, design and development services. These services have expanded to include networks, security, website and cloud-related issues. Consequently, this product segment’s contribution to industry revenue is expected to increase over the five years through 2017-18.
Internet-specific services relate primarily to website design and development and assistance with data streaming, internet access, and cloud services. Over the past five years, this segment has expanded as a proportion of industry revenue due to the emergence of new online technologies and the expansion of cloud services. Areas of high demand include online data storage services, website redevelopment for smartphone use, and optimisation of Web 2.0 capabilities.
Computer facilities management refers to optimising physical space for computer systems. Industry operators that provide these services ensure that the physical space used for computer systems is well planned and does not put the computer systems at risk. Risk concerns relate to temperature, humidity, fire, power management, data wiring and physical security. Over the past five years, these services have declined as a share of revenue due to advances in hardware technology that have boosted automation and required less maintenance.
Help Desk Support
Computer assistance services relate to technical support services and computer systems training. This segment is expected to decrease as a share of revenue over the five years through 2017-18, as Australian businesses and employees become more computer-literate, reducing the need for outsourced training. Furthermore, many technical support services are shifting offshore, as operators in countries with lower wage standards offer many of these services remotely at a significant discount to domestic operators.
Other Computer Services
The industry offers other services, including disaster recovery and software installation. As firms have increased their awareness and knowledge of computer security and general IT use, these services have diminished in prominence. As a result, this segment has declined as a share of revenue over the past five years.
49.8 12.1 9.3% 8.1% 7.2% 6.9% 6.6%
The industry is fragmented and includes several multinational companies that service large corporate contracts, as well as numerous smaller firms that specialise in specific skills or geographic areas. The industry’s low barriers to entry have contributed to its fragmented nature. In 2017-18, approximately 98% of businesses in the industry are expected to have fewer than 20 employees. The industry’s scope of services, combined with the presence of small specialist firms, has contributed to the industry’s low concentration.