Monday, 02 November 2020 05:59

IT spending across Australian industry seen growing by 3.6% in 2021 Featured

IT spending across Australian industry seen growing by 3.6% in 2021 Image by Annick Vanblaere from Pixabay

IT spending across all industry sectors in Australia will grow by 3.6% to reach $95.8 billion in 2021, the technology analyst firm Gartner says, adding that this follows an expected 2.8% decline in 2020.

The latest forecast was made at the Gartner IT Symposium/Xpo APAC last week, where analysts made presentations about industries including banking, utilities, education, government, insurance and manufacturing.

The company said while all sectors were feeling the economic impact of the coronavirus pandemic, utilities, government, education and healthcare had proven to be the most resilient when it came to tech spending in Australia this year.

The three industry sectors hit the most had been transportation, manufacturing and natural resources.

Kristian Steenstrup, distinguished research vice-president, explained that the COVID-19 response in the resources and manufacturing industry differed from other industries because it was not always physically possible to shut down a site.

gartner australian it spend 2021

“These companies are in the top three sectors for technology spending in Australia, but as they are designed for continuous operation they simply can’t respond to external factors as quickly as a retailer, for example,” he said.

“The physical nature of asset intensive industries makes it harder for employees to work from home. Looking ahead, we’re seeing strong interest from CIO clients in technologies such as proximity tracking to enable fast response to outbreaks and in the longer-term remote monitoring and control of equipment.

"Analytics, artificial intelligence and the Internet of Things will also attract investment next year."

The company pointed out that some airlines had grounded 95% of their fleet due to the government curbs on international travel. This had affected the transportation sector badly and it had had to cut back on IT spending by 15.5% in 2020.

IT spending on education was expected to grow by 8.6% to more than $3.1 billion next year because of increased purchases of laptops, tablets, communication and collaboration technologies to support online learning.

"In addition to learner investment needs, education institutions are also investing in COVID-19 testing and contact tracing. Many research institutions as well as public health schools are contributing to COVID-19 related research and development worldwide," Gartner said.

IT spending on healthcare in Australia was forecast to grow by 8.2% in 2021. "The healthcare provider industry will continue to optimise its spending on legacy technology, prepare the organisation for digital transformation and accelerate investment in key technologies that enable data-driven decision making," the firm said.

"COVID-19 has catalysed the adoption of IoT technologies (like virtual care and remote patient monitoring) and further spurred the already growing interest in BI/analytics and AI projects."

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Sam Varghese

Sam Varghese has been writing for iTWire since 2006, a year after the site came into existence. For nearly a decade thereafter, he wrote mostly about free and open source software, based on his own use of this genre of software. Since May 2016, he has been writing across many areas of technology. He has been a journalist for nearly 40 years in India (Indian Express and Deccan Herald), the UAE (Khaleej Times) and Australia (Daily Commercial News (now defunct) and The Age). His personal blog is titled Irregular Expression.

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