Up to code: Strong demand for cloud computing services has driven revenue growth

The Computer System Design Services industry comprises businesses that develop and implement information technology services, programming systems and business solutions. The industry has steadily expanded over the past five years as computers and IT in the workplace have required regular upgrades and enhancements, with many businesses outsourcing non-essential systems operations. Furthermore, increased online connectivity has driven the industry's growth over the period, with financial services providers such as banks and insurers remaining the industry's largest clients.Due to strong demand, industry revenue is expected to increase at an annualised 3.0% over the five years through 2018-19, to $53.5 billion. This includes anticipated revenue growth of 3.1% in the current year...read more.

Industry Statistics & Market Size
Revenue
$54bn
Annual Growth 14-19
3.0%
Forecast Growth 19-24
Profit
Employment
212,300
Businesses
52,656
Market Share of Companies

Industry Threats & Opportunities

  • Business and community reliance on the internet and related technologies underpins industry growth
  • High industry competition has limited price growth, contributing to lower profit margins
  • Industry employment is projected to increase as demand for IT specialists grows steadily
  • Industry Report - Industry Investment Chapter

    The Computer System Design Services industry has low capital intensity, as wages account for a significantly higher proportion of revenue than capital. For each dollar required for labour inputs in 2018-19, industry operators will invest an estimated $0.07 in capital equipment. The high proportion of revenue attributed to labour reflects the industry's service-oriented nature and the high education requirements for employees. The industry's major firms typically employ more highly skilled staff and therefore have a higher wage to cost ratio. Larger firms are therefore more labour-intensive and benefit from reduced depreciation and capital expenditure due to economies of scale...purchase to read more.

    Additional Insights for the Computer System Design Services Industry

    IBISWorld has determined the most important Key Success Factors for the Computer System Design Services are:

  • Having marketing expertise
  • Development of new products
  • Ready access to investment funding
  • IBISWorld analysts also discuss how external factors such as Capital expenditure on computer software and Capital expenditure by the public sector in the Computer System Design Services industry impact industry performance..

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    What's in this report

    What is the Computer System Design Services Industry?

    Commonly known as IT consulting, industry firms primarily provide clients with IT expertise. Industry services include writing, modifying, testing or providing user support for software. Industry companies also plan and design computer systems that integrate computer hardware, software, cloud and telecommunications technologies. The industry does not include non-customised software publishing activities.

    Industry Products
  • Computer hardware and software services
  • Computer facilities management
  • Internet-specific services
  • Labour-based computer assistance services
  • Other computer system services
  • Industry Activities
  • Hardware and software consulting
  • Computer programming
  • Internet and web design consulting
  • Developing custom software
  • Installing software
  • Analysing systems
  • Managing computer facilities
  • Software simulation and testing
  • Designing computer systems
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Capital expenditure on computer software
  • Capital expenditure by the public sector
  • Business confidence index
  • Internet subscribers
  • IT and telecommunications adoption

  • Current Performance
  • Revenue and growth trends
  • Increasing connectivity
  • Cloud technology
  • Rising competition
  • Chart: Revenue Growth

  • Industry Outlook
  • Future technology trends
  • Industry structure changes
  • Opportunities and threats
  • Table: Computer System Design Services Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Computer System Design Services Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Securitisation Vehicles
  • General Insurance
  • Telecommunications Services
  • Professional Services
  • National and Regional Commercial Banks

  • Key Selling Industries
  • Computer and Software Retailing
  • Data Storage Services
  • Internet Publishing and Broadcasting

  • Products & Services
  • Computer hardware and software services
  • Internet-specific services
  • Labour-based computer assistance services
  • Computer facilities management
  • Other computer system services
  • Chart: Computer System Design Services Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Financial services providers
  • Professional services providers
  • Government agencies
  • Telecommunications companies
  • Other sectors
  • Health and education sector
  • Retailers and wholesalers
  • Chart: Major Market Segmentation for the Computer System Design Services Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Wages
  • Purchases
  • Rent and utilities
  • Depreciation
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Computer System Design Services

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Computer System Design Services Industry

  • Industry Globalization
    IBM A/NZ Holdings Pty Limited,
  • Table: IBM A/NZ Holdings Pty Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Computer System Design Services Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Computer System Design Services Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Cloud System
  • A series of remote severs and software networks that allows users to access data and information from any location.
  • Managed Services
  • The combination of hardware provision, software development, installation and oversight, often in the form of a start-to-finish service.
  • Systems Management
  • Oversight of hardware and software used to automate new processes or any kind of data processing service.
  • Voice Over Internet Protocol (Voip)
  • Telephony and other communications services that are provided via the internet.
  • Web 2.0
  • A term to describe the way web sites are developed and used.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Computer System Design Services market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Computer System Design Services:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Computer System Design Services market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Computer System Design Services, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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