Industry Analysis & Industry Trends
The Computer System Design Services industry comprises businesses that develop and implement programming systems and business solutions. The industry has expanded rapidly as computers and information technology in the workplace require regular upgrades and enhancements, with many businesses outsourcing non-essential systems operations. The industry has grown over the past five years due to increased online connectivity, with financial services providers such as banks and insurers continuing to be among the industry's largest clients. Over the five years through 2015-16, industry revenue is expected to grow at an annualised 3.3% to total $45.3 billion. This includes forecast growth of 2.2% in 2015-16... purchase to read more
Industry Report - Industry Investment Chapter
The industry has a low level of capital intensity, as wages account for a significantly larger proportion of revenue than capital. To calculate the capital intensity level, IBISWorld uses data from the industry cost structure. Depreciation is used as a proxy for capital, and wages are used as a proxy for labour. In 2015-16, depreciation is estimated to account for 2.8% of industry revenue, with wages accounting for 40.6%. This shows that for each dollar required for labour inputs, an estimated $0.07 will be invested in capital equipment during the year.
The high proportion of revenue attributed to labour reflects the service-oriented nature of the industry and the high education level of employees... purchase to read more