Thinking of Buying a Computer/IT Services Business in Australia? Here Are 3 Vital Questions to Ask

The Australian computer system design services industry is valued at $84.4 billion in 2025, employing 287,000 people across 62,800 enterprises.

Profit margins average 10.8%, generating $9.1 billion in profit.

Revenue is forecast to grow at an annualised 5.2% through 2031, reaching $114.4 billion, driven by cloud adoption, AI integration, government digital transformation, and rising demand for cybersecurity and automation.

However, intensifying competition, offshore outsourcing, and ongoing labour shortages remain critical challenges for buyers to assess.

1. Is the Business Financially Sustainable and Profitable?

Why It Matters:

Computer/IT service businesses rely on steady streams of consulting, systems integration, software design, and cloud-based services.

Profitability depends on managing high labour costs, adopting advanced technologies, and differentiating services in a crowded market.

What to Check:

• Revenue mix – Identify reliance on high-value services like AI, cybersecurity, and cloud consulting versus routine IT support.

• Labour intensity – Wages are the largest expense, totalling $32.1 billion in 2025.

• Profitability trends – Compare the firm’s margins against the 10.8% industry benchmark.

• Capital investment – Review whether the business uses advanced tools like BIM, automation platforms, or AI-driven analytics to enhance efficiency.

2. How Competitive is the Business’s Market Position?

Why It Matters:

The industry is highly fragmented, with no firm controlling more than 3% of the market.

Large global players like DXC Technology, Accenture, Oracle, and IBM compete alongside thousands of small and specialised consultancies.

What to Check:

• Client base – Assess whether the business serves government, financial services, or high-growth industries such as healthcare and education.

• Reputation and trust – IT services depend heavily on long-term relationships and client confidence in security and delivery.

• Geographic positioning – NSW and Victoria dominate activity, while Canberra provides stable demand from federal government contracts.

• Exposure to offshoring – Routine IT support is increasingly outsourced to low-cost regions, so differentiation in specialist services is crucial.

3. Is the Business Aligned with Industry Trends and Future Growth?

Why It Matters:

Future growth is tied to cloud computing, AI-driven solutions, automation, and rising cybersecurity demand.

The Australian government’s Digital Transformation Strategy and large-scale corporate investment in cloud and data analytics will continue driving demand.

What to Check:

• Cloud adoption – Confirm whether the business provides hybrid or multi-cloud architecture and ongoing managed services.

• AI and automation expertise – Assess whether the firm is positioned to deliver AI-powered analytics, machine learning, and predictive cybersecurity.

• Regulatory compliance – Ensure adherence to APRA Prudential Standards, GDPR, and other data security frameworks.

• Sustainability of talent pipeline – Evaluate recruitment strategies, as Australia faces a shortage of over 100,000 IT professionals by 2027.

Ready to Invest in a Thriving Computer/IT Services Business?

With revenue growth supported by digital transformation, cloud infrastructure, and AI adoption, the IT services sector is one of Australia’s strongest long-term industries.

However, success depends on securing skilled talent, maintaining competitive differentiation, and aligning services with rapidly evolving client demands.

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