From a macro level, the technology outsourcing industry will increase in size but at a much slower pace, Philip Allen, IDC senior analyst for services said.
In 2002, the market was worth AU$3.8 billion and by 2007, it will reach AU$5.5 billion. This represents a compound annual growth rate of 7.5 percent as opposed to a decade of double-digit growth, Allen told reporters at an IT conference in Brisbane.
He cited three main reasons for the decline:
The average length of contracts has also shrunk, he said.
Seven- to 10-year deals were commonplace in the outsourcing heyday but last year, more than 50 percent of contracts in Australia were for three years or less, Allen told ZDNet Australia.
