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JB Hi Fi Commercial To Benefit From Lift In Government Spending

JB Hi Fi Commercial To Benefit From Lift In Government Spending

The Government IT market is expected to grow 2.2 percent to reach more than AU$9.5 billion in 2013, according to a new report by market research firm Gartner.

HB Hi Fi is predicting that their commercial supply division, which caters to schools and Government departments and currently has 70 staff, will be a $500M business by 2015. 

IT spending in Australia is forecast to reach A$10.7 billion. This includes spending on software, IT services, telecommunications, devices, data centres and internal IT services, mainly staff costs.

These findings are part of a global survey of government IT spending conducted by Gartner, dubbed User Survey Analysis: IT Spending Priorities in Government, Worldwide, 2013.

The Australian result, despite the tepid growth rate of 2.2 percent for 2013, is far better than the general picture across the globe, where Gartner is actually forecasting a decrease in spending – though at US$449.5 billion in 2013, the drop from 2012 is only 0.1 percent.

Despite the overall drop, Gartner has noted that mobile technologies, IT modernisation and cloud computing are the top three focus areas for 2013. Strong interest continues to grow in professional services and big data, it adds.

“Cloud computing, in particular, continues to increase compared with prior years, driven by economic conditions and a shift from capital expenditure to operational expenditure, as well as potentially more important factors such as faster deployment and reduced risk,” said Christine Arcaris, research director at Gartner.

Survey respondents say they are adopting public and private cloud-based services at an increasing rate, with 30-50 percent of government organisations expecting to have an active IT services contract in place within the next 12 months.