This IDC study presents the five-year forecast for the Australian IS Outsourcing market within 16 vertical markets. The purpose of this study is to identify recent trends that are influencing the outsourcing opportunities within vertical industries so far in 2004 and discuss their impact over the five-year forecast.

During the five-year forecast period, IDC is anticipating above-average increases in spend on IS outsourcing from the following industries government, insurance, retail, transportation and utilities.

"Outsourcing vendors in Australia should explore new vertical markets for opportunities. By focusing on growing vertical markets, vendors can enjoy bigger profit margins, develop unique and valuable vertical market expertise and shelter themselves from the intensely competitive landscape of the major three sectors? (Banking, Government, and Communications)," Phillip Allen, Senior Analyst ? Services.