IT Services in Australia

Australia in Focus: A Hub of Digital Transformation and Economic Prosperity

Contents

Australia is not only known for its vast landscapes and rich cultural heritage but also for its rapidly expanding technology sector. IT services in Australia play a crucial role in the country’s economy. It is contributing significantly to business growth, innovation, and digital transformation. With a thriving market for managed IT services, cloud computing, and cybersecurity solutions, Australia has positioned itself as a leading hub for technological advancements in the Asia-Pacific region. This article explores Australia’s economy, IT outsourcing trends, key software development companies, and the institutions shaping the future of IT services.

Australia as an Economy

Australia is a developed country with a diverse economy. In 2023, it ranked as the 14th-largest economy by GDP and is both a major exporter and importer of goods. The service sector, including IT services in Australia, plays a key role, contributing over 60% of the GDP and employing most of the workforce.²

Once seen as a land of farming and wool exports, Australia’s economy has evolved since World War II to focus more on manufacturing, services, and minerals. Today, the country is embracing its economic ties to the growing Asia-Pacific region and adapting to globalization and deregulation.³

The economy of Australia at a glance

	Gross Domestic Product	Data (Year)
	Annual GDP	USD 1.73 Trillion (2023)
	GDP Per Capita	USD 64,821 (2023)
	Income Category	High Income (2023)
	People	Data (Year)
	Population	27 Million(2025)
	Literacy Rate	96% (2024)

	IT Sector	Data (Year)
	IT Services Market Size	USD 38.5 Billion (2025)
	IT Outsourcing Market Size	USD 15.4 Billion (2025)
	Number of Registered Software Companies	64,500+ (2025)
	Business Environment	Data (Year)
	Ease of Doing Business	Score: 81 \| Rank: 14 (2020)
	Political Stability and Absence of Violence/Terrorism	Percentile Rank: 80 (2023)
	Corruptions Perceptions Index	Score: 75/100 \| Rank: 14/180 (2023)

The Market of IT Services in Australia

The Managed IT Services market in Australia is set to reach $38.5 billion in revenue, mainly driven by IT outsourcing, which is expected to hit $15.4 billion from 2025 to 2029. With a steady growth rate of 5.82% from 2025 to 2029, this market is projected to grow to $48.3 billion by 2029.

While the U.S. leads globally, Australia’s IT market is growing with increasing demand for cloud computing and cybersecurity. Australia’s unique geography with vast land and a scattered population has led to a higher demand for remote IT services. Additionally, strong ties to Asia are driving the need for IT solutions to support business expansion in the region.⁴

IT Outsourcing Market in Australia

Australian businesses are increasingly turning to third-party providers for IT outsourcing to cut costs and boost efficiency. This shift has driven higher demand for managed IT services such as cloud computing, cybersecurity, and data analytics. Moreover, the push for digital transformation is gaining momentum as companies modernize their operations to remain competitive in a fast-changing market.

A notable trend in the Australian IT outsourcing market is the move towards nearshoring. Businesses are increasingly outsourcing IT services to nearby countries like New Zealand, the Philippines, and Indonesia, benefiting from similar time zones and cultural compatibility. This approach enhances communication and collaboration. Additionally, the rise of automation and artificial intelligence (AI) is reshaping the market. With a growing demand for IT services in Australia, companies are leveraging AI and automation to boost efficiency and cut costs, leading to a focus on outsourcing tasks such as data entry, customer service, and software development.

The Australian IT outsourcing market is steadily expanding, driven by cost reduction, improved efficiency, and access to specialized skills. Australia’s unique geographical location and small population have led to a shortage of skilled IT professionals. This has made outsourcing IT services a popular choice for many Australian businesses.⁵

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Discover Companies

Top Software Development and IT Employers in Australia

We have sorted a list of top companies that employ the highest number of IT professionals in Australia. We have analyzed publicly available information on IT companies and sorted a list of the top 10 firms based on employee count in Australia. While our emphasis was on employee quantity, it’s worth recognizing that certain companies, although esteemed for their quality in the market, may not appear on or rank highly in the list due to their smaller employee size.

Company	Total Employees	No. of Employees in Australia	% of Employees in Australia
Amazon	701,932	7,108	1.0%
Tata Consultancy Services	651,830	3,993	0.6%
Accenture	615,824	3,875	0.6%
Amazon Web Services (AWS)	138,340	3,763	2.7%
Atlassian	16,443	3,710	22.6%
IBM	329,550	3,638	1.1%
Infosys	338,771	3,592	1.1%
Microsoft	239,079	3,401	1.4%
Google	300,535	3,236	1.1%
DXC Technology	87,496	3,189	3.6%

Software Industry Associations in Australia

Several organizations are instrumental in driving the growth of IT services in Australia. These include:

Australian Information Industry Association (AIIA)

The Australian Information Industry Association (AIIA) serves as the primary representative body and advocacy group for digital ecosystem professionals in Australia. As a not-for-profit organization, it benefits its members, with membership fees being tax-deductible. Established in 1978, the AIIA has focused on fostering the growth of the digital ecosystem, enhancing business conditions for its members, and contributing to Australia’s economic prosperity. Given the number of tech professionals employed by these companies, the AIIA represents a significant portion of the more than 900,000 individuals working in Australia’s technology sector.⁶

Digital Service Providers Australia New Zealand (DSPANZ)

Digital Service Providers Australia New Zealand (DSPANZ) is a non-profit industry association that represents the top-tier business software sector in Australia and Aotearoa New Zealand, which plays a pivotal role in IT services in Australia. The organization helps the software industry grow by sharing knowledge, building strong networks, and working with the government to shape policies and highlight important industry issues. Additionally, they facilitate consultations with their members on G2B and B2B projects that require technology-driven solutions and changes to business processes, while also connecting industry and government to collaboratively address challenges.⁷

Australian Computer Society (ACS)

Australian Computer Society (ACS) is a professional association representing Australia’s technology sector, advocating for the technologies, people, and skills essential to the nation’s future. Its mission is to drive positive change through technology by supporting the growth of diverse and highly skilled technology professionals. The association creates value for its members, businesses, and society by offering community, advocacy, and professional development opportunities.

Reputed Institutions for Higher Education in IT in Australia

Here is a list of the top universities in Australia, ranked according to their research achievements in Computer Science. The rankings were determined using a dataset of 27 million citations from 1.06 million academic papers published by 39 Australian universities. These citations were used to calculate publication ratings, which were then adjusted for release dates and incorporated into the final scores. For information about the degrees offered, please refer to the university page, but always verify details on the university’s official website.⁸

Please note that the alumni in engineering roles may include other engineering domains other than computer science or software engineering since we have taken the filtered count from their LinkedIn pages.

Institution	Rank in Australia	Total Alumni	No. of Alumni in IT & Engineering Roles	% of Alumni in IT & Engineering Roles
University of Melbourne	1	64,616	29,502	11.1%
University of Sydney	2	51,797	26,811	10.6%
University of New South Wales	3	59,863	41,635	16.0%
University of Queensland	4	91,257	24,459	12.8%
Monash University	5	93,365	37,032	12.6%
Australian National University	6	83,281	9,763	10.5%
University of Adelaide	7	116,407	14,872	12.8%
University of Western Australia	8	115,525	14,439	12.5%
Queensland University of Technology	9	88,333	27,206	14.4%
Macquarie University	10	65,279	14,847	9.0%

Conclusion

Over time, Australia has shifted from an agricultural-based economy to one that excels in services, manufacturing, and technology, including a booming IT services sector. With its strategic location in the Asia-Pacific region, Australia is well-positioned for trade and digital innovation. The growing demand for IT outsourcing, cloud services, and cybersecurity is further enhancing its global competitiveness. Supported by a strong education system and a thriving IT ecosystem, Australia is an attractive destination for businesses and professionals in digital transformation.

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