Wednesday, July 16, 2014

BC IT Outsourcing 2013/14

"O frabjous day! Callooh! Callay!"

The BC Public Accounts came out today, so it's time to update the statistics and see how the IT consulting racket shaped up in BC last year. Judging from the sharp suits on the streets and general perkiness of the local IT labour market, I'd guess "pretty peachy", but there's something to be said for actually checking the numbers.

Totalling up all the Usual Suspects, I am pleased to report that 2013/14 was another record-breaking year in technology outsourcing: a $435,350,420 spend, that's up 11% over last year! Rockin' it!

Let's put that in perspective, shall we?

  • IT sourcing rocked it with an 11% gain.
  • Overall government spending was up $174M on a budget of $43B, for a gain of 0.4%.
  • The government recently offered the teachers a contract with a 1.1% (average) annual wage lift.
  • Canadian inflation in 2013 was 1.24%.
  • BC education spending increased 2.6% over last year.
  • BC health care spending increased 2.1% over last year.

I said it last year, and I'll say it again this year: suck on that, children and sick people! Who's the boss? IT people are the boss!

Once again, in the individual category, HP Advanced Solutions reigns supreme, billing out $138,407,858, a 6.8% gain. HP's growth is slowing though and my favourite systems integrator, Deloitte, just closed a monster year with 51% year-over-year billings growth and a take of $54,294,507. Look out HP, someone hungry is on your heals!

I recently discovered that there's a significant government IT spend in the health authorities, so I'm looking forward to adding some new stats over the summer. In addition, I feel like leaving Telus out of the accounting is an increasingly hard call: while much of their billing is infrastructure stuff like group cell phone plans and connectivity, they also have a huge new outsourcing arm doing all sorts of not-at-all-like-a-telephone stuff: Telus Health, anyone?

Until next year, keep on spending, British Columbia!

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