Infosys, Wipro, TCS, HCL Technologies, IBM, HP and Capgemini are targeting five big IT contracts worth A$2 billion in Australia.
IT services growth drivers in Australia
IDC says the Australia IT services market is forecasted to grow from A$15 billion in 2012 to A$17.6 billion in 2017 at a CAGR of 3.2 percent for the 5 year period 2013-2017.
Australia Managed Services Study in June 2012 by IDC said organizations are looking to move to a utility-based model when their current outsourcing managed services contract expires.
More than 40 percent of Australian organizations will be shifting a portion of their outsourcing / managed services activity and spending to cloud services in the next 12 – 24 months. This is confirmed by the growing number of outsourcing contracts that are already being moved to the cloud.
Raj Mudaliar, senior market analyst of IDC’s Australia IT Services Research Group, said: “Investments will incorporate the different elements of a digital services supply chain that includes a larger footprint of cloud datacenter infrastructure; an app store for services; an integrated, policy-based management system for services procurement, a cloud factory; an ‘independent’ testing service; and/or sense-predict-respond capabilities, to name a few.”
Indian and foreign IT service firm targets Australia
The request for information (RFI) and request for proposal (RFP) for incremental IT outsourcing work are coming from Sydney Water, Rio Tinto, Jetstar, Aurizon and Transport for NSW, a Times of India report today said.
IT vendors IBM, Infosys and Accenture have sought RFIs and RFPs to participate in mining firm Rio Tinto’s A$750 million IT-BPO contract for managing HR, analytics, engineering and logistics. Rio Tinto had previously outsourced procurement to Infosys, finance & accounting (F&A) to IBM, ERP and application support to Accenture and IT infrastructure to CSC. These previously outsourced 10-year contracts were worth A$3 billion.
Wipro, TCS and Genpact are participating in the RFIs/RFPs of Jetstar, a subsidiary of the Qantas Group, that will be outsourcing work related to ticketing, customer loyalty program, analytics, HR and F&A.
Jetstar is currently using Lincom for virtual desktop support. It has been subcontracted through Tech Mahindra. Jetstar’s customer support is partially outsourced to Teleperformance and Convergys.
Last year, Infosys, Wipro, HCL and TCS, as also HP and IBM, participated in the EoI for bagging an IT deal from New South Wales (NSW) Transport for server and webhosting, data centre infrastructure and end user computing.