The IT services market in Australia is on track to reach $23.4 billion in the next four years, according to research published by IDC.
The market analyst predicts that revenue from IT services will grow at a rate of 3.8 percent through to 2023, a marginal increase on its previous prediction of 3.7 percent growth to 2022. IDC estimated the market to be worth $19.4 billion in 2018.
ANZ market analyst for IT services Chayse Gorton said "technology suppliers must enable organisations to execute on their enterprise-wide digital strategies" if they're to ensure that IT services providers reap the benefits of the market boom.
"This is imperative because execution of a digital strategy is critical in helping the organisation achieve its business transformation and to compete in the digital economy. IT service providers are increasing taking on the role of a business consultant by leveraging their IT consulting pedigree," IDC stated in its report.
IDC broke down the market into three core areas: project-oriented, managed services and support services.
Project-oriented services were predicted to be the biggest growth segment thanks to customers' attempts to deploy new technology platforms like cloud, mobility, big data and social in order to gain a business advantage, as well as the need to optimise their critical business systems.
"End users will look to IT service providers for consultation on next-generation technologies. They will seek assistance in using these technologies to create new offerings, business models, and relationships," Gorton said.
IDC said service providers would be challenged to differentiate themselves from the competition given the impending market growth.