Leasing and technology spell bad news for computer maintenance demand
Melbourne, Australia (PRWEB) December 06, 2012
Few people in Australia are comfortable repairing their own computer. Consumers continue to view internal operations of computers as complicated, although this has not translated to booming demand for the Computer Maintenance Services industry in Australia. Businesses today have made two clear shifts in operations that spell trouble for the long-term viability of computer maintenance providers. According to IBISWorld industry analyst Craig Shulman, “the tendency to lease computers rather than buy them often means that computers are replaced when, or before, they malfunction”. Furthermore, the increasing presence of comprehensive, in-house IT teams means that many repairs can be conducted at minimal cost. An influx of IT specialists occurred in the late 1990s due to the dot-com crash. Subsequent consolidation of the IT industry has meant abnormal growth in the number of firms offering maintenance services as many operatives established their own repair companies after being retrenched from a downsizing industry.
As a result, the Computer Maintenance Services industry in Australia is facing an uncertain future, especially after a difficult past five years. During the five years through 2012-13, industry revenue has contracted at an annualised rate of 0.2%. In 2012-13, industry revenue is forecast to increase by 1.3% to $1.8 billion. “The rapid pace of technological advancements, the growing need for faster processing speeds and the falling price of consumer electronics mean that replacing a faulty machine is often more economical than repairing it”, adds Shulman. In the aftermath of Australia's economic downturn, companies are resorting to maintain servers and other peripheral equipment, and households are also following suit with their personal computers.
Today, while the IT industry at large has recovered, the need for repairs is falling and appears set to continue a downward trajectory. Industry revenue is forecast to decline in the five years through 2017-18, as private households become increasingly willing to lease computers, and as the price of consumer electronics continues to drop, resulting in decreased demand for repairs. The largest four operators are Hewlett-Packard Australia, IBM A/NZ, UXC and Symantec Australia, and account for the majority of industry revenue. IBISWorld expects that over the past decade, market share concentration has declined as the number of suppliers of computer equipment increased, and larger computer vendors outsourced some maintenance functions. The industry is becoming increasingly fragmented, as smaller firms specialise in skills that are in higher demand.
For more information, visit IBISWorld’s Computer Maintenance Services report in Australia industry page.
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IBISWorld industry Report Key Topics
Competitors in this industry provide computer maintenance and repair services, including the repair of computer peripheral equipment such as servers. Repairs also include diagnostic efforts on poorly designed or installed software and hardware.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
About IBISWorld Inc.
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every Australian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Melbourne, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com.au or call (03) 9655 3886.