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8669.0 - Computing Services Industry, Australia, 1995-96  
Previous ISSUE Released at 11:30 AM (CANBERRA TIME) 15/10/1997   
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Computing services industry doubles, profits fall


Data released by the Australian Bureau of Statistics today showed that, at the end of June 1996, there were 9,679 businesses in the computing services industry, which was almost double the 4,894 businesses in the industry at the end June 1993.

The ABS publication Computing Services Industry, Australia 1995-96 (cat. no. 8669.0) stated that businesses in the industry generated $8,088 million in income in 1995-96. The main single source of this income was from software consultancy services ($2,099 million), which represented 26 per cent of total income of the industry. The other major source of income was the sale of computer and communication hardware, which accounted 13 per cent ($1,048 million) of total income.

Although the majority of indicators showed growth in the industry, the operating profit margin declined from 9.3 per cent in 1992-93 to 5.7 per cent in 1995-96.

During the period 1995-96, businesses in this industry incurred $7,642 million in expenses. The major item of expenditure was labour costs which accounted for 36 per cent ($2,727 million) of total expenses. Payments made to subcontractors and consultants accounted for a further 12 per cent ($892 million) of total expenses.

There were 55,046 people employed in the industry at the end of June 1996, of which 27,797 employees were computer and technical staff. Since June 1993, employment in the industry rose from 30,056. This represented an 87 per cent rise in full-time employment and a 71 per cent rise in part-time employment.

At the end of June 1996, 88 per cent of businesses in the industry employed less than 5 people. These businesses accounted for 27 per cent (15,006) of people employed in the industry and generated 14 per cent ($1,157 million) of total income. There were 51 businesses in the industry with employment of over 100 people, accounting for 42 per cent of employment and contributing 59 per cent of total income.

Businesses operating in the computer services industry were concentrated in New South Wales and Victoria. They accounted for 77 per cent of people employed in the industry and 81 per cent of the total income.

Details are in Computing Services Industry, Australia 1995-96 (cat. no. 8669.0) available from ABS bookshops.

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