IT Managed Services Companies in 2016/2017

ATO published their annual tax data for Australian companies earning over 100 Million in Revenue, and again, it is very eye opening in regards to the IT Industry in Australia.


I did this analysis back in 2015, but decided to do it again in 2018 to see how it has changed.


And change it has. About 10% of the revenue value appears to have been wiped off the industry. In 2013/14, the combined Managed Services biggies appeared to pull in $15.7 billion. Now it is only $14.2 billion. That's destruction of $1.5 billion out of the industry. Huge.


And its easy to see who the biggest losers are. IBM and HP.


IBM Australia went from having revenues of $4.6 billion in 2013/2014 to $3.3 billion in 2016/2017. A drop of 28% over 3 years. HP Australia was worse though...revenues of $3.1 billion in 2013/2014 down to 1.6 billion in 2016/2017. A drop of 48%!


And its interesting to see the various strategies being employed by those MS providers to survice. It appears Accenture and Data3 have picked up a bit of work...growing their revenue over 30% And the pure play Indian outfits of Infosys, TATA and Wipro have definitely gained acceptance.


Here are the stats.