FDI into the software and IT services sector in Australia has shown a steady increase from 2009 to 2013. According to greenfield investment monitor fDi Markets, the beginning of the upward trend dates back to 2009, when 43 software and IT services projects were recorded in Australia. This figure has increased since 2009, peaking when 94 projects were recorded in 2013. A total of 401 projects have been recorded in the five-year period.
In line with this, capital expenditure and job creation levels in the Australian software and IT service sectors have also been on the rise between 2009 and 2013. In 2009, $232.80m of inward investment in the sector was tracked, resulting in the creation of 1752 jobs, compared with $897.80m of investment and 3844 jobs created in 2013.
Data from fDi Markets shows that Sydney was the most targeted city, with 211 projects recorded and 8192 jobs created in the five-year period. Its nearest rival, Melbourne, was some distance behind with 92 projects recorded and third-placed Brisbane was even further behind with 19 projects.
The US has emerged as the main source of Australian-destined software and IT services FDI, contributing 231 projects over the five-year period with overall capital investment of $2.09bn, resulting in the creation of 8722 jobs. The UK follows in second position with 48 projects and 1810 new jobs.
So far in 2014, 60 new projects have been recorded in the sector in the first six months since January. The first quarter of the year accounted for 22 projects and the second 38 for projects. If this trend continues for the remainder of 2014, Australia-destined FDI in the software and IT services sector has the potential to surpass 2013 levels.