Brennan sees big opportunity in mid-market

The Australian mid-market is ready for outsourcing and is willing to open up their wallets, with average spending reaching into $300, 000 per year on IT&T according to a joint IDC and Brennan report.

According to the Australian Bureau of Statistics there are 26, 200 mid-market companies in Australia with an average spend of $196,000 in IT and $102,000 in fixed data telecommunications per year.

Dave Steven managing director of Brennan said these companies want to be differentiated from the enterprise and SMB market which they are constantly being lumped into.

“These companies are in a good position financially thanks to a strong economy and are cashed up and ready to invest in their IT,” he said. “These companies are finding a lot of solutions have only been developed for the enterprise level or that lower SOHO level and want products to be developed for them.”

Stevens said at least one-quarter of these mid-market companies perceive IT&T as a major source of competitive advantage.

“The mid-market sees value in outsourcing as a way to boost productivity through operational enhancements and deliver cost savings to the business,” he said.

The report also shows that more than one third of the local mid-market businesses using outsourcing of some form and this figure is set to increase with the majority surveyed (57 percent) associating outsourcing with cost reduction. Access to skills/resource (40 percent) and reduced risk (35 percent) were also cited as major benefits related to outsourcing.

The research findings in this report were based on seven market surveys conducted by IDC in 2006. Respondents employing between 50-499 staff were selected for the results.