This IDC study presents a third quarter update on the Australian outsourcing market forecast (first presented in the study Australia IS Outsourcing and Network and Desktop Outsourcing Services Market 2005-2009 Forecast and Analysis [IDC #AU221229M, June 2005]) for the period of 2005-2009 with detailed forecast assumptions and market trends to help service providers gain an in-depth understanding of the total spending across the various outsourcing and services markets.

"Large IT outsourcers in Australia are faced with a series of changing conditions that are impacting their ability to continue healthy sustained growth in the coming years. These conditions include increased customer use of discrete IT outsourcing, reduced average size of deals, continued downward price pressures resulting from the adoption of easier-to-use and cheaper technologies, and offshore service delivery. It has thus become extremely critical to develop a strategy for internal transformation and investments to align with customer transformation to newer technologies and service models," says Aprajita Sharma, senior analyst, Outsourcing and Business Process Outsourcing (BPO), IDC Australia.