Industry overview

The technology industry is one of the fastest growing and most innovative in the Australian economy with a sustained average annual growth rate approaching 12 per cent. This is more than two and a half times the average growth rate of the Australian economy as a whole.

Information and communications technology (ICT) is a significant industry for Australia, accounting for around 10 per cent of gross domestic product (A$70 billion). Small businesses, employing fewer than 20 persons, dominate the industry with 96 per cent of all ICT businesses classified as small. These businesses account for approximately 24 per cent of employment and 12 per cent of total income.

Australia has a small core of internationally competitive ICT manufacturing and software development firms. The latest statistics suggests that R&D expenditure for the sector is A$1,380 million per annum.

The ICT industry exports around $3.3 billion annually. However, large and growing demand for ICT hardware and software means that Australia is actually a net importer of technology. Enthusiastically embracing the world's best technology has enabled Australia to achieve significant economic and productivity growth over the past 10 years.

Internet usage and e-commerce

Australians are among the world's most intensive users of advanced technology, ranking fourth among OECD countries when comparing ICT expenditure to Gross Domestic Product (GDP). An estimated 9.2 million adults (66 per cent of Australia's adult population) access the internet and 10 per cent of Australian adults (1.3 million) used the internet to purchase or order goods or services. Four out of every five businesses use computers, just under three in every five access the internet while about one in every six businesses have a website.

Government use of PCs and the internet is high for all levels of government, with 100 per cent of Federal Departments using PCs and the internet.

Australian capability

As one of the world's most IT-savvy nations, Australia is a recognised source of expertise in information and communications technologies. Cutting-edge research and development, strong early adoption of new technologies and resourceful sales and marketing capabilities all contribute to a thriving Australian ICT sector.

Use of IT enabling technologies is high throughout the entire Australian economy, and this is a crucial factor in the country's strong economic track record. Throughout the last decade, Australia has consistently outperformed most comparable OECD economies in terms of economic growth and productivity gains. A study by the Productivity Commission found that, during the 1990s, around one-third of the nation's productivity growth — and a quarter of its overall output growth — came as a result of strong IT adoption.

Australia also has an enviable record in technological R&D and commercialisation of IT-based products and services. Today, Australia's services and high-tech industries contribute to almost 80 per cent of GDP and are considered some of the most the innovative and dynamic in the world.

In particular, the following areas represent fields of world-class expertise and potential commercial partnerships:

• Banking and finance
• E-government
• E-learning
• E-security
• Smart-cards
• Intelligent transport systems
• Wireless
• E-health
• Computer games
• Forensics
• IT consulting

Click on each link for more detailed information (in English).

IT consulting and services

Information technology consulting and integrations services are one of the powerhouses of Australia's information economy. Consultancy services and systems integration work act as agents of change for organisations, helping to promote more efficient business practices and increased productivity. Strategic deployment of IT solutions based on strong consultancy advice is a major reason for Australia's current economic strength.

Throughout the last decade, Australia has consistently outperformed most comparable OECD economies in terms of economic growth and productivity gains. A study by the Productivity Commission found that, during the 1990s, around one-third of the nation's productivity growth — and a quarter of its overall output growth — came as a result of strong ICT adoption.

The Australian computer consultancy services industry, which includes system integration, has an annual turnover of A$1.1 billion, according to Ibisworld. Thousands of IT services and consultancy firms operate throughout Australia, ranging in size from single-person operations to growing businesses with footprint across the Asia Pacific region. Among the more successful Australian IT services players are Amcon Solutions Group (ASG), Citec, Kaz Group, Planit, Powerlan, Praxa, SMS Management Consulting and Volante Solutions.

Australian companies are also actively engaged in developing new software products both for domestic and export markets, particularly in the Asia-Pacific region. Services contribute the bulk of export revenue in the ICT sector, with major services including:

• consultancy, analysis and programming services
• data processing services
• storage of data
• document management and bibliographic services
• computer maintenance and repair services.

For further information, visit the Australian Computer Society (the peak association for IT professionals) and Ibisworld for its report on business consulting.

Government bodies

Australian Government Information Management Office

Government strategy and online services
Website: www.agimo.gov.au

Commonwealth Scientific Industrial Research Organisation (CSIRO) — Information Technology Division

Commonwealth Government research and development department
Website: www.csiro.com.au

Department of Communications, Information Technology and the Arts

Providing policy advice to the Australian Government on the arts, information technology and communications issues.
Website: www.dcita.gov.au

Networks and associations

Australian Electrical and Electronic Manufacturers Association

Represents the ICT, electronics and electrical manufacturing industries in Australia.
Website: www.aeema.asn.au

Australian Information Industries Association

An industry body that encourages the supply of ICT goods and services domestically and internationally.
Website: www.aiia.com.au

Australian Interactive Multimedia Industry Association

Represents the Australian interactive multimedia industry nationally and internationally with government, media, customers, suppliers, financiers, distributors, and content owners.
Website: www.aimia.com.au

Australian Venture Capital Association

Australian venture capital financing industry body.
Website: www.avcal.com.au

Internet Industry Association

Australia's national industry body for Internet commerce, content and connectivity
Website: www.iia.net.au

Multimedia and Internet Network

Online community for ITC startups, small and medium enterprises (SMEs) and students operating in the Australian multimedia and Internet industry
Website: www.min.com.au

Service providers

The Australian IT (newspaper)

Australian technology news
Website: www.technology.news.com.au

Fairfax IT Newsflash

International and Australian ICT news
Website: www.it.fairfax.com.au

Internet.com e-newsletters

The 'Australia News' newsletter provides today's Internet news relevant to Australia
Website: http://australianit.news.com.au/channels/0,7203,industry_news,00.html

ACNeilsen.consult

Weekly newsletter that provides information about market size, growth rates, historical trends, industry activity and the impact of new technologies
Website: www.consult.com.au/newsletter/index.shtml

Subscription services

Australia Information Industries Association

ICT news and events with a focus on Australian Business
Website: www.aiia.com

Australian Electrical and Electronic Manufacturers Association

Fortnightly publication of the Australian Electrical and Electronic Manufacturers' Association, with news for Australia's ICT, electrical and electronic industries
Website: www.aeema.asn.au