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ICT Suppliers Come to the Rescue for Australian Financial Institutions, According to New IDC Report

  • 30 October, 2008 11:06

<p>Australian financial institutions rely heavily on their ICT suppliers to provide them with the products and solutions that enable them to survive and thrive</p>
<p>SYDNEY, 30 October 2008 – A new report from IDC predicts investment by the Australian Banking, Financial Services and Insurance (BFSI) market in ICT will grow to over A$10 billion by 2012.</p>
<p>"The U.S. subprime situation should serve as a warning to any Australian banks that have operated under a loose risk management regime. The pursuit of effective risk management will be unrelenting, even if other high-cost and high-priority projects come into picture. The threat of a slowdown has made IT investment committees more discerning of IT investments and focus on improved performance benchmarking and project governance," says Melissa Martin, Senior Analyst for Vertical Markets at IDC.</p>
<p>The report titled Australia Banking, Finance, and Insurance Information and Communication Technology Market 2008–2012 Forecast and Analysis shows that BFSI sector spending on ICT reached A$8.4 billion in 2007 and accounted for a 21.3% share of the total Australian ICT market. The BFSI market has historically been the largest spender on ICT products and services in Australia. (The next largest vertical industries are Government at 14.3%, followed by Telecommunications &amp; Media at 12.7%).</p>
<p>"The market will see an iterative approach to core banking upgrades rather than big-bang transformations. Emphasis will be made not so much on scalability but rather on product-to-market capabilities, along with process efficiency. In any case, the upgrade of core banking and financial systems will certainly drive up technology spending among banks," adds Martin.</p>
<p>IDC research has found the key business priorities for the banking sector in Australia in 2008 are: predictive analytics for management and risk management, user authentication, mobility (banking/payments), core systems replacement and the hiring of staff in offshore locations.</p>
<p>The key business priorities for the insurance sector in Australia in 2008 are sales force management, business process &amp; document management, risk management &amp; underwriting, accounting reporting &amp; compliance and agent applications and commissions.</p>
<p>The IDC study focuses on the BFSI sector in Australia. The report provides an overview of where short and long term opportunities can be found and highlights purchasing patterns for products / services by market, actual ICT market sizing and ICT market shares for 2007, along with forecasts for 2008 through 2012. The IDC study is part of a series of reports focusing on specific vertical markets.</p>
<p>This report is now available. To purchase this report, please contact Lady Gueco, Business Development Manager on +61 2 9925 2261 or</p>
<p>On IDC's website,, this media release relates to document AU386102Q, Australia Banking, Finance, and Insurance Information and Communication Technology Market 2008–2012 Forecast and Analysis.</p>
<p>Melissa Martin has recently joined IDC's IT Spending and Vertical Markets team. IDC covers a variety of vertical markets including Banking &amp; Insurance, Government, Education, Media, Health, Utilities and Retail &amp; Wholesale. Melissa is available for analyst briefings and to meet clients. To talk to Melissa send an e-mail to</p>
<p>For press enquires please contact:
Melissa Martin
Senior Market Analyst, IT Spending &amp; Vertical Markets, IDC
+61 2 9925 2258</p>
<p>Sally Taylor-Phillips
Marketing Communciations Manager
+61 2 9925 2234</p>
<p>About IDC
IDC is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community make fact-based decisions on technology purchases and business strategy. More than 1000 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends covering over 110 countries worldwide. For more than 44 years, IDC has provided strategic insights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. You can learn more about IDC by visiting or</p>

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