Defence downturn impacts federal government ICT spending

The market grew by around six per cent during the 2006/07 financial year, a growth rate similar to that recorded the previous year.

While the total value of ICT contracts reported by federal government agencies increased, the number of ICT contracts fell by approximately 15 per cent during the 2006/07 financial year.

As a result, the average value of contracts rose to more than $256,000 in 2006/07, compared with $185,000 the previous year.

There was also a drop in the number of suppliers who secured federal ICT contracts, from around 2,200 in 2005/06 to just over 1,800 in 2006/07.

Intermedium director, Judy Hurditch, said the market has been sustained by strong growth in IT Services.