Wednesday, July 24, 2013

BC IT Outsourcing 2012/13

It's hard to believe a whole year has gone by! And yet, it has. July is here, the BC 2012/2013 Public Accounts have come out, so it's time to update my tracking of IT outsourcing spending with another year's data points!

Last year the government's "private sector partners" notched up 8% year-over-year growth to extract $393,603,233 from the treasury, setting another all-time record! While growth has slowed from last year's 21% pace, IT spending growth is still above both the rate of inflation and the overall growth rate of the budget. Suck on that, children and sick people!

In the individual category, HP Advanced Solutions continues to rule the roost, posting 19% growth to notch a league-leading $130M in billings. At this point, nobody else is even close. Former champ IBM continues to shed billings, and now lags even Maximus with only $59M in billings.

My favourite systems integrator, Deloitte & Touch, has plateaued at $36M in billings, but with potential new builds in natural resources to add to the social services sector, they could surprise on the upside next season: get your bets in early.

Update: I figured out what last years mysterious entry for "Oracle Microsystems" is. Somehow, Sun Microsystems won a big services contract to build components of the eHealth systems (a pharmacy system and an electronic health record). So, the totals and growth rate numbers have been updated. And here I thought Sun was a hardware company (perhaps somebody knew somebody). Once Oracle bought Sun, we have a name change to "Oracle Microsystems", but still a healthy $20M annual services spend. And a new seam of IT boondogglery to investigate: eHealth must be the grand-daddy of them all.

1 comment:

Steve Golden said...

I recently heard this story on NPR and it reminded me of your many blog posts regarding the high cost, but failing IT projects.

"The Defense Department developed a new computer system, but according to Paltrow, "They worked on it for roughly 10 years and ended up spending a billion dollars on it, and in 2010 they decided it had been a failure, that it just wasn't going to work. They pulled the plug on it and so the billion dollars spent on the program went down the tubes, and the military was left with this antiquated system that hadn't been updated at all in more than a decade because everyone was anticipating this new, now canceled, system to come online."

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