Post Election Briefing 2007 
Expert analysis of the post-election landscape and what the future holds for ICT
 

Canberra, 5 December
More information

Issue No: 112 (5 November 2007)

The Medium - Your Channel To Government ICT Information
I announced the top suppliers for 2006-07 during Intermedium's State of the Market briefings in Canberra and Sydney last week, and there were a few surprises!  We also announced the Froggy winner and I was delighted to see how enthusiastically the audiences applauded the efforts of the winner and the finalists. Clearly they recognise just how hard a supplier has to work to achieve this sort of success so quickly.

Our congratulations to all those that achieved success in the difficult Federal Government market during the last financial year. 


Top 5 Contracts
Telstra was the big winner this week with three contracts reported worth a total of $24m ($11.16m at DMO, $6.7m at DVA, $6.2m at ATO).  DCITA reported a $6.73m contract with Multi-Service Networks, and Centrelink a $5.2m contract with Acer.

Regards

Judy Hurditch
Director - Intermedium 

www.intermedium.com.au 
 

Intermedium Reveals Top Ranking in Federal Government ICT Top 100 Suppliers
IBM’s huge year in the Federal Government ICT market saw it eclipse its nearest competitor by a massive $243m. IBM ranked 1st ahead of Telstra in 2nd place and Unisys in 3rd in Intermedium’s annual ranking of the Top 100 ICT suppliers to the Federal Government. 

Telstra’s position in 2006-07 was unchanged from last year, but the big improver was Unisys. It rocketed 77 places up the rankings (from 80th in 2005-06) due to two big contracts at DIAC. Its 3rd placing has been achieved without the inclusion of an expected contract to outsource regional IT service delivery for 460 Defence bases and sites, announced in January 2007, but not yet signed.
Commander Group jumped from 24th in 2005-06 to 6th in 2006-07, predominantly due to the inclusion of Volante’s results (which were reported separately in the previous year). In other notable moves, Mincom rose from 29th to 8th.
Announcing the Top ICT Suppliers at Intermedium’s State of the Market 2007 briefing in Canberra last week, Intermedium Director, Judy Hurditch suggested that Intermedium is increasingly certain that the final results for 2006-07 will show a downturn in the total value of Federal Government ICT contracts. 

It is too early to say by just how much, however, it is very clear that there has been a marked downturn in Defence. This is most likely to be due to the Defence Management Review and the absence of a permanent CIO than any reduction in budget.
   
As in the previous years, the market was highly polarised with almost half (48.5%) of the total market accounted for by 73 contracts, each worth over $5m.  Between them, IBM, Telstra and Unisys accounted for almost a third (32.5%) of total new contract value and the Top 25 suppliers took 65% of the market.

Intermedium's Top 5 for 2006-07:

2006-07 Ranking Company Value of contracts

1.

IBM

661.8m

2.

Telstra

218.3.m

3.

Unisys

158.8m

4.

CSC

154.7m

5.

Optus

123.8m

These rankings are based on AusTender Contracts Reported data as at 30 September 2007. More information about the supplier rankings and detailed information about the Federal Government ICT market are available in Intermedium’s Market Highlights Report 2006-07.

Intermedium’s analysis of the 2006-07 Federal Government ICT market data shows that:
  • There was a significant downturn in contracts within the Department of Defence
  • Defence’ share of the market dropped to 25% in 2006-07
  • The number of ICT contracts fell by approximately 15% 
  • The average value of contracts rose to more than $256,000, compared with $185,000 the previous year
  • The only growth in the market has been in IT Services
BMC Software Named Top Froggy of 2007
BMC Software was awarded the inaugural Intermedium Leaping Frog Award in Canberra last week. The award recognises companies in the Federal Government ICT market that achieved the fastest rate of growth in sales of ICT products and services to Federal agencies, in the three years to 30 June 2007.  Read more
ATO’s ICT Sourcing Program Raises Ideas for Other Agencies
As Greg Farr stepped to the podium at last week’s vendor briefing, interest from vendors clearly went beyond the business at hand. Farr was recently confirmed as the next CIO at Defence and he will be charged with modernising Defence ICT, along the lines recommended in the Defence Review earlier this year. Some of his comments about the ATO approach to ICT purchasing may well have implications for other agencies.  Read more
Did you Guess the Top 5 Suppliers?
How successful would you have been at guessing the Top 5 Federal Government ICT suppliers for 2006-07?  Intermedium invited attendees at the Canberra State of the Market 2007 briefing to list the Top 5 suppliers, in order, and the results are very interesting!  Read more
Project Management a Priority for APS

Despite advances in project management and programme implementation in the Australian public sector, it seems that the APS has not yet 'turned the corner', but is learning from developments in project management that should lead to an increased rate of project successes.  Read more

ICT NEWS AT A GLANCE

A weekly round-up of Government ICT news from Australia and the world. Simply click on the headlines listed below to read more!

Hot Topics

Broadband
 
Federal
 
Defence
 
 
Other
 
State
  
QLD
 
VIC
 
NSW
 
Solutions
 
Software
 
IT Services
 
Vendor
 
 
General
 

 

EVENTS

INTERMEDIUM

Events Calendar

The Post Election Landscape 
Analysis of the post-election landscape and what the future holds for ICT
-  ICT business opportunities arising form election promises
-  The sales outlook for 2008 
Click for more information


** February 2008  **
Winning Tenders
We'll help you understand the tender process in government, and provide you with skills to prepare a winning response.
Click here to register your interest


2008 Events
Intermedium's 2008 training and events calendar will be available shortly. 
Click here if you'd like to receive a copy as soon as it is published.


  

    

 

  

  

TENDER SPOT

Tender Spot
is a list of significant Federal and State ICT tenders currently open.  Tender Spot should not be regarded as a substitute for your usual tender notification service/s eg
TenderLink because it is only a weekly update.

Highlighted Tenders
Finance Appointment of a Group Training Organisation (GTO) to administer the Australian Public Service (APS) Information and Communications Technology (ICT) New Apprenticeship Programme 23-11-07
Defence Standing Offer Panel for External Service Providers and Project Management and Support Services 15-11-07
AFP Provision of IT Application Development Services 23-11-07
VIC Police iFace 05-12-07


Click the following 'read more' icon  for the complete listing and full description of all tenders, including those due to close in the coming week. 
Read more


FEDERAL GOVERNMENT CONTRACTS PUBLISHED THIS
WEEK


Each week, Intermedium analyses all ICT contracts as reported by all federal government reporting agencies and as published in AusTender. This contracts data is built into a comprehensive series of reports.

Each month, Intermedium updates the ICT procurement plans released by the federal government agencies in its scout IT spreadsheet analysis. More information. For a sample of scout IT click here.

Each week, the Medium Newsletter gives you access to all government reported contracts valued at more than $250,000 as published in AusTender for the previous week. Click to download file.

The table below lists the five largest contracts reported for the week ending 1 November 2007:     

 

Supplier Name

Contract Value

Agency

Contract Date

TELSTRA 

11,161,800

DMO

29-10-07

MULTI-SERVICE NETWORKS

6,728,112

DCITA

15-10-07

TELSTRA

6,660,966

DVA

09-11-06

TELSTRA

6,178,435

ATO

24-09-07

ACER COMPUTER AUSTRALIA

5,218,092

CENTRELINK

01-11-07

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