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IDC Finds Healthcare Has Under Invested in Technology

  • 14 August, 2007 17:15

<p>SYDNEY, 14th August 2007 - IDC's new analysis titled, "Australian Healthcare ICT Market 2007," examines Australian healthcare technology spending. The report provides a comprehensive analysis of technology budgets and spending priorities, and highlights Australia's healthcare sector as a late adopter.</p>
<p>Phillip Allen, Research Manager for Vertical Markets said, "The Australian healthcare industry has under-invested in technology for a decade. The healthcare sector struggles with the reallocation of budgets to raise sufficient funds for new spending initiatives and as a result, providers remain classified as late adopters."</p>
<p>"In the next five years we are not expecting a big improvement, the health sector is forecast to remain at A$2,029 million by 2011, which is a very similar level of spending to now," added Allen.</p>
<p>IDC is seeing key investment areas for the healthcare sector focused around updating infrastructure. "The current infrastructure is old and needs updating. It's at a point that many institutions need to upgrade their infrastructure in order to operate more efficiently and reduce operating costs," commented Allen.</p>
<p>Investment in technology remains consistent, and in 2007 IDC forecasts healthcare firms will spend A$2,055 million on ICT. The majority of this spending will be spent on IT hardware, software and services, which will take total IT spending to A$1,472 million with an additional A$583 million being spent on communications including; fixed and mobile voice and data.</p>
<p>While spending remains similar during the forecast period, there are shifts in the mix of spending. Currently, 46% of ICT budgets are being consumed by hardware, and in the next 5 years this is forecasted to fall to 39% as spending shifts towards software, IT services and communications.</p>
<p>IDC predicts growth in some key areas, as healthcare providers look towards technology investment and process redesign as methods of improving productivity, reducing costly medical errors, and increasing patient satisfaction.IT providers will be critical in helping healthcare providers reach their goals and have a big role to play in helping advise, educate, and implement solutions.</p>
<p>If you would like further information about this press release please contact: Belinda Johnson, IDC's Marketing Director on ph: 02-9925 2236 or email: or to purchase IDC research, please contact Gary Clarke, IDC's Associate VP of Sales via ph 02- 9925 2226 or email</p>
<p>Phillip Allen,
Research Manager, Vertical Markets
Ph: 02-9925-2276
or via email:</p>

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