John Ridge

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John Ridge Past President Australian Computer
Society
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What is Current in the IT World ?

• An Historical Perspective -
• The Current Situation
• Future HOT Prospects

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But first a word from our sponsors

• Or rather my sponsor

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Australian Computer Society

• Formed in 1966
• 8 branches
• 16,000 members
• Recognised as the national Society for IT
  professionals
• Member of Professions Australian (previously
  ACP), IFIP, SEARCC...

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ACS Foundation

• Formed in August 2001 - DGR
• To support IT scholarships and research
• Raised over 3 million
• 2 million in scholarships
• 110 scholarships, including 9 RMIT
• Supported by the ACS (gt 700k) and the IT
  industry, especially Compuware
• All money for scholarships and RD goes to
  recipients

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What is Current in the IT World ?

• Historical perspective -
• Current situation
• Future HOT prospects

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IT World

• What is the IT industry ?
• How Big is it / IT industry ?
• What has been happening ?
• What is going to happen ?

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IT Industry

• IT or ITT or ICT ?? doesnt matter !!
• Unique Industry
• Horizontal as well as vertical

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IT Industry

• Employed in IT Industry 240,000
• Total IT people employed 700,000
• Twice as many outside the industry than inside
  !!!
• Annual trade deficit - 15 billion

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(No Transcript)
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Size of Australian ICT Industry

• 250,000 275,000 employed directly
• 600,000 750,000 in total
• 8 of GDP
• 2001-02 - 14.4 billion deficit a figure
  equivalent to 65 of current account deficit

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Total ICT imports cost almost 20 billion

• Imports of motor vehicles (non-industrial) cost
  9.9 billion
• Fuels and lubricants imports 8.8 billion
• --------------------------------------------------
  ------
• Textiles, clothing and footwear imports 4.8
  billion
• Food imports 4.7 billion
• Imports of books, toys and leisure goods 3.2
  billion
• Household electrical goods imports 3.2 billion

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ICT Trade Deficit it will double by end of 2010
and exceed 60 billion by 2020
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IT Industry

• Downturn at least 3 times before
• Each time accompanied by an economic downturn
• Each time bounced back and became stronger
• But how many more times .
• Students not pursuing a career or
• enrolling in IT are short sighted

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IT Industry

• Current downturn longer and deeper than
  previous ones.
• But the industry will turn around, and be bigger
  and better than ever
• But maybe different

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What is the IT Industry ?

• It really is
• The greatest but most ignored national and
  global economic barometer and indicator .
• John Ridge

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Australias Bright Spot Results - Houghton

• ICT SERVICES
• Deficit - 725 million (3b v 2.3b)
• Exports grew 7.4
• Computer Consultancy and Implementation Services
  - 514 million
• Surplus grew by 27 pa (93-94 to 01-02)

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F3 Identified Opportunities Foresighting WG

• Informatics
• Games ICT based
• Bio-informatics
• E-Security
• Health
• Education

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F3 Identified Positives Foresighting WG

• Great Strengths in specialist s/w development
  areas
• High skill levels
• Specialised manufacturing
• Contract research projects
• World-class capabilities
• Product design and development

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F3 Identified Opportunities - McKinsey

• Games
• Supplying applications horizontally across
  sectors, eg security services
• Specialised Technical Outsourced ICT Services
• Specialist skills and services in support of MNCs
  eg RD

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Identified HOT Opportunities - Ridge

• Games developing not playing
• Security IT and physical
• Specialised Technical Outsourced ICT Services
• Specialist skills and services in support of MNCs
  eg RD
• Project management
• More business skills marketing, management,
  business analysis
• More personnel skills people management

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Leveraging Effect Data

• Jobs between 18 and 25 lost for every 1m spent
  overseas
• Output multiplier 1.51 1.86
• Value multiplier - 1.46 1.49
• Welfare payments saved 212,000
• Tax revenue lost - 318,000

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Framework Review

• Australias ICT industry is not capable of being
  competitive - WRONG !!!
• Small local market greater local support and /
  or go global
• It is not just sufficient for Australia to be a
  good user of any other nations technology or ICT
  services
• Need a focused effort to continually update
  domestic capacity in both innovation and
  production
• More support locally from both government and
  private sectors

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The Main Priority for Action

• Support and grow the Australian ICT Industry !!

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Australian Computer Society Level 3, 160 Clarence
Street Sydney NSW 2000 Tel [phone] Fax
[phone] Email info_at_acs.org.au
www.acs.org.au