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Irene Pimentel

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Irene Pimentel is an IBRS analyst who focuses on news and information on the global IT Outsourcing market. Irene provides IBRS clients with up to date information on all outsourcing deals that are taking place helping our clients understand who is winning business in what markets. With over 10 years experience as a management consultant, Irene has worked with some of Australia's largest blue chip companies and public sector organisations. Irene has also worked as a research manager for an IT sourcing consultancy, providing clients with targeted intelligence and advice for their specific IT sourcing transactions.

Conclusion: This month has seen a rise in mid-high level IT management appointments and departures. These types of shifts are especially prominent in times of change and uncertainty when companies search for staff to provide new skills, experiences to support critical IT and business operations. With an impetus to expedite digital transformation and other projects, companies must focus on increased standards for selecting, deploying and managing infrastructure and highly skilled professionals to implement plans. Vendors must be prepared to support customers when leaders with different priorities or focused on streamlining and enhancing business operations are brought in.


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Conclusion: This month, the first anchor tenant signed up to the new Sydney Innovation and Technology Precinct. The NSW Government first announced plans for the Tech Central precinct, located in Sydney’s CBD, in 2018. The precinct is expected to provide 50,000 square metres of space for startup and scale-up businesses and promote industry expansion, innovation and collaboration. These types of initiatives are critical to stimulating the ICT service industry, and ensuring the ongoing development of offerings and delivery models that shift quickly and are sensitive to external influences, such as new technologies or the pandemic. The Tech Central precinct is expected to facilitate the evolution of the industry in Australia and allow for high quality and advanced products and services that customers demand, and vendors require to remain relevant in a highly competitive environment.


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Conclusion: This month there have been increased discussions regarding the security services sector, marketplace expansion and triggers for growth. New market conditions, operating frameworks and the rapid adoption and integration of new services and technologies have resulted in a demand for security offerings that cater to the new environment. However, it has also given rise to new threats posed by new offerings and technologies, such as ageing devices which can cause vulnerabilities with changed operations, configuration changes and under-skilled staff. Security service vendors need to target offerings to individual company needs and strategic objectives as well as specific industry needs.


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Conclusion: This month there has been a focus on the impact of the current economic environment on managed service providers. Declines in vendor service uptake, or difficulties experienced by existing customers, have resulted in the need for providers to adapt in an uncertain environment. New measures adopted by vendors when dealing with customers have included the revision of traditional business and payment models, increased flexibility with service contracts, and client support packages. Internally, vendor strategies include tightened cashflow management and regular communication with suppliers to mitigate disruptions that can have flow-on effects to their own customers. Whilst there has been a growth in demand for vendors to provide new and more complex solutions to cater to new work practices and business operations, vendors must work to maintain the integrity of their services. The re-diversion or loss of staff can impact on a vendor’s capacity to provide quality managed services, resulting in vulnerabilities. Vendors must adapt customer engagement practices in order to cater to both internal and external pressures caused by the highly variable and uncertain economic environment.


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Conclusion: This month, there has been a particular focus on business continuity plans amidst COVID-19-driven uncertainties. Businesses are updating and activating, or establishing business continuity plans to minimise operational disruptions. Broad-based business continuity programs to ensure solid internal operations, avoid supply chain disruptions, support customer liquidity needs and mitigate risks associated with a volatile industry have become critical. Vendors must focus on managing partner and customer relations during market shifts and changes to strategic plans which are expected to be ongoing.


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Conclusion: This month, discussions regarding the COVID-19 outbreak and the range of impacts on industry have been prominent. While extreme and unforeseen impacts of seemingly small events have been common for vendors and their customers in the past, this pandemic has triggered a wide range of effects, with potentially long-term implications. In all circumstances, vendors need to have strong, yet highly adaptable foundations to accommodate sudden shifts in the market, and adequately support their customers. The outputs and responses to this pandemic will be unique; however, customers will still require experienced vendors to provide services which support changes to business operations, long-term strategies and external issues, such as fluid supply chains, new government regulations/frameworks and economic uncertainties.


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Conclusion: This month has seen a surge in merger and acquisition transactions, and discussions regarding the increased level of acquisitions in the past year. A growing trend of private equity firms investing in service providers was also flagged. This represents a shift in the market, as vendors become more established, profitable and more attractive to private equity investors. The opportunity to drive greater profitability, and demand for specialised technologies and services, also act as incentives for investment and provide vendors with resources to develop and offer a wide range of targeted, high-quality services to their customers.


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Conclusion: This month, security issues that concern businesses have been prominent. In particular, high profile security incidents in 2019 have resulted in a greater awareness of challenges faced by vendors and businesses when preparing for and responding to security concerns. One particular vulnerability flagged is that security initiatives and responses have trouble keeping step with new threats, technologies and security frameworks. It is necessary for both vendors and customers to view security as part of a framework that can adapt to change quickly, and accommodate challenges that arise with highly unexpected variables. Security specialists and frameworks can provide a good basis for strategies and response measures, but the capacity to recognise and respond to unforeseen incidents and threats is also critical.


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Conclusion: This month, regulatory frameworks for the ICT industry and their interaction with IT businesses and customers have been prominent. The private sector has been more vocal about the need for government involvement and the government has been searching for industry input in areas of interest. Areas that are vulnerable and require government protocols and standards, as well as regulations, must be flagged. In addition, frameworks that may have negative impacts on local industry or global trade efforts if other market standards conflict must also be considered. It is critical that vendors, agencies and advocacy groups work together when setting frameworks in order to produce new and better business outcomes, as well as support government regulatory functions.


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Conclusion: This month, the launch of plans to develop new data centres have been prominent. The market has experienced a heightened demand for storage and associated services, with adoption driven by increased awareness amongst business users and evolving technologies specifically targeted to perform functions, such as the protection of critical assets and data. New unified technologies to meet a higher demand for the integration of applications, data and management solutions have also prompted growth. It is necessary for vendors to identify market gaps and offer new solutions to customers to stay relevant in an environment that is constantly changing. The development of new solutions to cater to customers who demand new ways to store, manage and use their data is essential, and an ongoing process.


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In the News

New cyber security rules reset $8b cloud marketplace - Financial Review - 26 July 2020

Philip Nesci, IBRS adviser and former CIO, has warned that agencies will need to get their information management sorted out to capitalise on the new rules. ‘‘Agencies need to identify their...
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Australia can build a culture of employee-led innovation - DropEverything - 24 July 2020

IBRS advisor Dr. Joseph Sweeney discusses why it falls to individuals to look at improving their work in a post-COVID world. Dr. Sweeney comments on the need to build a culture of innovation that...
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Outdated work from home policies bog down Aussie businesses - Computer Reseller News - 6 April 2020

IBRS analyst Dr. Joseph Sweeney provides best practice-advice on working from home in the current pandemic situation. Dr. Joseph Sweeney discusses current working from home policies which are...
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Centrelink crashes under demand for crisis payments - Australian Financial Review - 23 march 2020

IBRS workforce transformation advisor Joseph Sweeney said many government departments had to navigate difficult IT environments that were only part-way through their digital transformations, with...
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Inside EY's security work at ANZ - Australian Financial Review - 3 March 2020

"There is more security work to go round than there are resources. So I don't think the market is that crowded. It's important to remember that security is not something you buy and then it's done;...
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