Computer service industry booms

THERE was a 52 per cent increase in businesses operating in the computer service industry in the three years to June 1999, with 14,731 businesses fitting into this category, according to recent Australian Bureau of Statistics data.

This represents an annualised growth rate of 15 per cent over the three years.

The industry was dominated by small business during 1998-1999, with 14,414 businesses (98 per cent) having fewer than 20 people employed.

Businesses in the computing

services industry generated $10,474 million in income during the same period, which was a 30 per cent increase since 1995-1996.

The main components were the provision of bundled computer

services ($3,354 million), non-bundled customised software services and solutions ($2,556 million) and computer processing services ($1,106 million).

In 1998-99, the operating profit before tax for the industry was $836 million, representing an operating profit margin of 8.2 per cent.

At the end of June 1999, there were 74,395 people working for businesses in the computer services industry, which was a 35 per cent increase since June 1996. More than three quarters were computing and technical staff.

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