The Australian Tech Index

THE AUSTRALIAN TECH Monitoring the Health of the Australian ICT Economy The Australian Tech Index is a quarterly service developed to provide important insights into the current and future state of the Australian technology economy. The index incorporates various indicators including quarterly measurements of local CIO confidence. INDEX Q3 2012 presented by now incorporating SkillsMatch Data E longhaus CIO POLLING ICT TRADE ICT PROFESSIONAL ICT VENDOR MARKET VALUE CONSUMER DEMAND EMPLOYMENT comprises Longhaus' CIO Confidence Poll of 50 senior ICT decision makers in Australian sourced from ITCRA's SkillsMatch data (ICT Placements) and DEEWR's Internet vacancy index for ICT Professionals. It provides indications as to the overall level of filled and unfilled demand for ICT labour. These are key indices in the Tech Index. sourced from the ABS's retail trade data as well Australian National Accounts. It provides an indicator as to movements in sourced from ABS International Trade of Goods and Services (5388.0) - service credits and debits for computer and information services. These provide a measure of supply (ICT services exports) and demand (ICT services imports) for Australian based ICT activity. These are key indices in the Tech Index. sourced from the Australian medium to large organisations. The CIO polling is designed to assess CIO's confidence for the coming quarter and forms the statistic for the green line (see Tech Index graphic) or CIO forecast. Stock Exchange's Information Technology Index (XIJ), is a quarterly average of overall market value of Australian listed technology companies. It is useful to indicate overall movements in investor (stocks) confidence and market capital. This is an important indicator to the Tech Index. consumer demand and again is a constituent element to the Tech Index statistics. Q3 2012 INDEX 127.00 Remains Steady from Q1 2012 SLOWER BUT STEADY 140.00 CIO's remain optimistic for Quarter 3 2012 Higher rates of turnover amongst ICT contractors than permanents 133.00 133 00 130 00 131.00 128.00 •.. Q3 2012 CIO Poll Forecast 127 00 Longhaus CIO Poll of 50 ICT decision makers in medium to large Australian organisations indicates that CIO's are no less optimistic in Quarter 3, 2011 than over the preceding 12 months. They expect there to be slightly more turnover in ICT contractors, than previous quarters. 124.00 03 2012 18 month trend forecast 2009 2010 01 2011 02 2011 Q3 2011 04 2011 01 2012 Q2 2012 Q3 2012 Forecast VENDOR HEALTH 117 PPT PPT ASX:XIJ DEEWR:IVI DEMAND FOR EMPLOYMENT IS SOFTENING n Monitor AUSTRALIAN STOCK EXCHANGE : XIJ Shown is the XIJ price index as calculated by Standard and Poor - the index value is the quotient of the total available market capitalisation of the index's constituents and its divisor. The index reached a high-point in first quarter 2010, reaching 736 (daily) in late March 2010 and as of mid-August 2012 is around 550 02 2012 76 ICT PROFESSIONAL VACANCIES (DEEWR IVI) DEEWR's Internet Vacancy Index, which records job advertisements in Australia's SEEK, My Career, CareerOne and Australian JobSearch. Shown is the data for ICT Professionals, the index has recorded a prolonged decline in the number of advertisements since Quarter 1,2011 to present. Q2 2012 Trace Mem 1 ASX:XIJ ON UP LOF ON boWN DEEWR:IVI UR Mem 2 DOWN Mem 1 Trace Mem 2 OFF IMPORT/EXPORT IMPORTS OF ICT SERVICES STEADY VOLUME-PRICE OVER 3 YEAR TREND EXPORTS TREND DOWN SLIGHTLY BUT WITH AN UPTURN IN Q2 2012 Computer and Information Services Imports and Exports is sourced from $399m $362m data collected by the ABS, shown is an index based on dollar figures (current prices) for the value of computer services and information services. The index is baselined at early 2001. There is significant fluctuation in the quarterly figures, however the value of exports has trended down slightly over three years, while imports has remained steady. IMPORTS QUARTER TO QUARTER/PRICE PER MILL EXPORTS DURING THE NEXT BUSINESS QUARTER QUARTER THREE 2012 How will your organisation's number of ICT staff change? PERMANENT STAFF 2% 4% 48% 24% 22% Significantly Decrease Slightly Decrease Stay The Same Slightly Increase Significantly Increase 4% 20% 30% 30% 16% CONTRACTING STAFF The Index is composed of four dimensions: 1) demand forces including ICT spending and ICT importing. 2) supply forces including labour supply, 3) strength of vendors indicated by market value and 4) consumer factors. The forecast index THE AUSTRALIAN TECH INDEX measured by quarterly CIO polling SOURCES Tech Index: Longhaus Tech Index ITCRA SkillsMatch and Longhaus 2012 00Confidence Poll Vendor Health: Department of Education, Employment and Warkplace Relations - Internet. Vacancy Index and The Australian Stack Exchange Import/Export: Australian Bureau of Statistics - intermational Trede in Goods and Services CIÓ Canfidence Pall and Quarter by Quarter staff change: 50 Senior ICT Decision Makers from Medium to Large Australian Organisations E longhaus SkillsMatch ICT Labour Market Analysis ITCRA © 2012 Longhaus Pty Ltd