BC IT Outsourcing 2023/24

OK, it has been a while since the last time I published this data, but I have a valid excuse.

The most striking feature of the 2024 chart is the zero’ing out of IBM’s piece of the pie. Big Blue, which once billed the government $107M in a year, has been reduced to a billing rate of less than $5M per year over the last two years.

Everything else feels more or less the same. After seven years of NDP government, the overall trajectory of outsourcing growth has beeen flattened, but in no way reversed. It is a smaller proportion of overall spend, but the substantial change wrought by the Campbell Liberal government starting around 2005 has been durable – BC IT has a huge outsourced component still.

The initial surge in smaller local companies after 2017 stalled out by 2021 and had been flat since.

The most consistent grower is now CGI, which entered the Victoria market around 2005 and has grown to $60M/year in billings with consistent year-over-year increases.