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Victorian Government ICT Industry Plan 2005 – 2010

Reprinted October 2007

Reprinted October 2007

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Minister’s Message

You can’t stop progress – nowhere is this contracts with government. In partnership priorities to continue working with the
more apparent than in the ICT industry, with the Australian Industry Group and the industry and education sectors to ensure
where the pace of change is outweighed only Australian Information Industries Association, that industry demand for ICT skills can be
by the scope of technological advancement. we launched an ICT Skills awareness met with high quality Victorian graduates.
With ICT holding the key to solving some campaign – ICT: Start Here. Go Anywhere
Having a strong supply of ICT workers in the
of the biggest challenges facing the world - which has been adopted as a national
State also has a flow-on effect for innovation
today, there should be no doubt that locally, brand. We helped establish the world-class
and productivity and in supporting other
the ICT industry remains one of the Victorian motion capture facilities at Deakin University,
growing areas like advanced manufacturing,
Government’s key priorities. which are being used for research, teaching
biotechnology, nanotechnology and all
and commercial development. In addition
In the two years since the Victorian service industries. With Victoria facing an
to this assistance, since December 2005,
Government’s ICT Industry Plan 2005 – increasing need to foster economic growth
we have awarded nearly 500 grants to local
2010 was first released there have been through innovation, the ICT workforce will
ICT companies as encouragement to attend
far-reaching technological developments, have a central role in our future growth
overseas trade fairs, resulting in projected
including the emergence of web 2.0 and success.
exports worth $571 million.
platforms for networking, collaboration and
Already technologies such as sensors
syndication. Coupled with advances in The best endorsement of the ICT sector
and RFID are playing a role in improving
broadband capabilities, these developments in Victoria and its continuing world-class
environment and resource management, and
will underpin future changes to business performance comes from the market itself,
I am keen to see Victorian ICT products and
operations, personal communications, and the strong rate of ICT investment
services at the centre of initiatives to reduce
entertainment and household technology here. As further demonstration that we
greenhouse gases, improve our use and
use. are operating in a global market, we have
conservation of water and combat terrorism. I
had recent new investments not only from
I believe that we are on the verge of another know we have the drive and the talent to lead
multinationals such as Hewlett Packard,
wave of social and economic change that will the world on these issues and I look forward
Computershare and AXA, but also through
herald valuable opportunities, and I call on to playing a supporting role in achieving this
the expansion of local companies such as
the local ICT industry to be ready to respond. vision.
games developer IR Gurus.
While individual businesses must take
responsibility for their own success, I am proud of what the Government and
the Government remains committed to a industry have achieved collaboratively over
raft of support measures that can help to the last few years, but there is much more
reduce barriers. hard work required to maintain growth and
meet future market challenges. One such
Victorian Government support for the
challenge is the potential skills shortage,
local ICT industry has been significant. The Hon Theo Theophanous
indicated by rising jobs demand, and a
In the last two years, we have assisted in Minister for Information and
general decline in enrolments for ICT courses
establishing new industry clusters focused Communication Technology
and graduate numbers. The Government’s
on security (SECIA), mobile applications
ICT skills programs have assisted students
(Mobility Mesh) and spatial applications
to gain practical industry experience as part
(Spatial Victoria). In an Australian-first,
of their ICT courses, enhancing employment
the Government has implemented ICT
opportunities, and providing industry with
procurement policies that give vendors
job-ready graduates. It is one of my highest
ownership of intellectual property created in

Victorian Government ICT Industry Plan 2005-2010 1

Minister’s Message 1

Growing Tomorrow’s Industries Today 4

Achievements 5
Time for review 7

The ICT Landscape 8

Current environment 8
Victorian ICT capability 8
Future environment 10
Playing to current and emerging strengths 12

Victorian Government ICT Industry Plan 14

ICT industry plan 14
Framework 14
Strategies 15
Working with industry 15
Measuring success 15

Playing on a Global Stage 17

Current situation 17
Role of Victorian Government 18
Strategies 18
Current initiatives 18
New initiatives 19

Encouraging Strategic Collaboration 21

Current situation 21
Role of Victorian Government 22
Strategies 22
Current initiatives 22
New initiatives 23

Linking with the Domestic Market 25

Current situation 25
Role of Victorian Government 26
Strategies 26
Current initiatives 26
New initiatives 26

Investing in Innovation 29
Current situation 29
Role of Victorian Government 30
Strategies 31
Current initiatives 31
New initiatives 31

Building the Skills to Succeed 33

Current situation 33
Role of Victorian Government 34
Strategies 35
Current initiatives 35
New initiatives 35

Delivering Infrastructure Capability 37

Current situation 37
Role of Victorian Government 38
Strategy 38
Current initiatives 38
New initiatives 39

Contributions 40

Victorian Government ICT Industry Plan 2005-2010 3

Growing Tomorrow’s Industries Today
In 2001, the Victorian Government released Growing Tomorrow’s Industries Today,
a 10-year plan for the information and communication technology (ICT) industry.

Growing Tomorrow’s Growing Tomorrow’s Industries Today

Industries Today
Vision Medium-term targets
Growing Tomorrow’s Industries Today was the
most comprehensive ICT industry policy ever By 2010, Victoria is a globally recognised • The Victorian Government is
released by a Victorian Government. ICT industry hotspot. successfully targeting emerging
clusters of excellence.
It recognised the opportunities for Objectives
economic development in the State from the • The Victorian ICT industry is
• The Victorian ICT industry generates
production and consumption of ICT. It also recognised as a supplier of goods
substantial exports, jobs and wealth
identified the Victorian Government’s strong and services to key global industries.
for the State.
commitment to work with the local industry
• Victorian investment and export
to help it become a significant player in the • Victoria is home to internationally
performance reflect the increased
international ICT sector. recognised and globally competitive
integration of ICT product into global
ICT companies that are integrated
Growing Tomorrow’s Industries Today outlined supply chains.
into global industry supply chains.
a long-term vision for the ICT industry and
Long-term international targets
areas critical to its growth. It identified the • Victoria is an internationally recognised
Government’s objectives for the industry centre for ICT research, development • The value of Victorian ICT exports is
and set targets by which success would and commercialisation. more than $1.5 billion each year.
be measured over time. Finally, Growing
• Victorian industry fully leverages • Significant increases in the number
Tomorrow’s Industries Today identified a
the advantages provided by ICT. and success of Victorian start-up
broad range of current and future initiatives
companies and Victoria recognised
to help the local industry grow and reach Short-term targets
as a global centre of ICT innovation.
its potential.
Each year, the Government
• The importance of the ICT
directly facilitates:
industry trade and employment to
• More than 800 new ICT jobs the Victorian economy surpassing
global benchmarks.
• ICT investment in the State worth more
than $150 million

• ICT exports valued at $150 million.

4 Victorian Government ICT Industry Plan 2005-2010

Achievements Growing Tomorrow’s Industries Today: highlights
Growing Tomorrow’s Industries Today
was released before the full impact of the Short-term targets prototype development and idigital
global downturn in ICT was felt. In these audience development.
Since 2001, the Government has
circumstances, it has provided a strong
directly facilitated: • Game Plan: Game On, building
foundation for government and ICT industry
on previous Victorian Government
activity over a turbulent period. • Creation of more than 5,000 jobs
initiatives to assist local electronic
Critically, the commitment of the Victorian • $700 million of new ICT investment games developers.
Government to the local ICT industry outlined
• More than $900 million in exports. • 10 industry networks and clusters
in 2001 has proved to be at a time when
established, including in emerging
that support was most needed. Having a Highlights
areas of:
comprehensive plan in place for the sector
• Establishment of Computershare
enabled government and industry to remain RFID – radio frequency
Global Headquarters and Operations
focused on outcomes and to ensure the identification
Centre with more than 1,250 jobs.
industry would be well prepared for recovery.
ITS – Intelligent Transport Systems
• Major investments by Hewlett-Packard,
The level of investment in the local ICT
SingTel Optus, NEC, IBM, Hitachi, eLearning.
industry has been a major achievement of
Satyam, Infosys, Bosch, Birlasoft,
Growing Tomorrow’s Industries Today. Since • More than 40,000 students informed
Foxtel, TCS and Fujitsu (Atos).
2001, there have been substantial investments about ICT careers in 370 secondary
made in the State by local and international • Eight of the top 15 Indian ICT schools.
businesses. These include the establishment companies now located in Victoria.
• National ICT Australia Victoria
of the Global Headquarters and Operations
• More than 300 companies involved in Research Laboratory established with
Centre of Computershare — a leading
trade fairs and missions with expected $8 million in funding provided by the
provider of registry services and solutions
export sales of more than $260 million. State Government.
— in Abbotsford in 2003, which brought
more than 1,250 new jobs to the State. • 1,700 Victorian ICT companies listed • NEC Next Generation Broadband
Significant other investments have included on VicIT, a database allowing local Research and Development
Hewlett-Packard, IBM, SingTel Optus, Satyam, companies to market their capabilities Centre established.
NEC, Infosys, Foxtel, TCS, Birlasoft, Pacific to an international audience.
• eServices Panel – more than $30 million
Internet, Bosch, Hitachi and Fujitsu (Atos).
• ICT use encouraged and supported transacted; 70 per cent of projects won
The Victorian Government has been through a suite of programs under by Victorian companies.
successful in attracting strategic investment Victoria’s eCommerce Advantage,
• More than 500 companies
from companies in emerging markets such including funding for eCommerce
attended government and industry
as India. Today, eight out of the top 15 Indian Roadshows providing training to more
ICT symposiums.
ICT companies have a presence in Victoria. than 2,000 businesses across the State.
• More than 200 companies exposed
Programs and activities under Growing • $3.7 million announced for projects
to collaborative ICT projects under the
Tomorrow’s Industries Today have been well under the Digital Media Fund,
eCommerce Exhibition Projects Program.
received by industry and have led to a broad including digital animation, game
range of successes.

Victorian Government ICT Industry Plan 2005-2010 5

The Government has helped more ICT research and development (R&D) in the
Aconex companies achieve export success through State was provided with a significant boost
initiatives such as its Trade Fairs and Missions with the establishment of the National ICT
Established in Melbourne in 2000,
and Spotlight on Victoria programs, which Australia Victoria Research Laboratory.
Aconex has quickly become a leading
together highlight the capabilities of Victorian NEC Australia also made a major commitment
global ICT provider, offering online
ICT small to medium enterprises (SMEs) to to continue to grow its globally orientated ICT
information management solutions
a global audience. R&D effort by establishing its Next Generation
to the construction, resources and
Broadband R&D centre in Victoria.
property management industries. There have been concerted industry
and government efforts to drive industry Making it easier for local industry to do
The Aconex web collaboration system
growth through supporting and promoting business with government has also been
enables companies to share, track, filter
key existing Victorian ICT strengths and a focus of activities. For example, the
and archive all project documentation
capabilities. The Government has worked Government has refined and updated its
and correspondence via a secure
closely with the electronic games sector on eServices Panel and held regular ICT-
internet login, saving time and money on
the development of a series of dedicated government symposiums to give industry the
projects through increased control and
strategies, the latest being Game Plan: opportunity to liaise directly with government
Game On. The State is now host to more departments and agencies about their future
Aconex has been recognised as one of than 10 industry clusters, focused on new procurement needs.
Australia’s fastest growing companies, and emerging areas of ICT.
The Government has also supported innovative
ranking in the top 15 in the BRW Fast
Victoria retained its position as the leading and collaborative use of ICT by other industry
100 and Deloitte Technology Fast 50
state for ICT graduates during the period. The sectors such as through the eCommerce
Awards for two years running.
Government helped the industry attract and Exhibition Projects Program.
Currently, more than 20,000 companies retain the skills it needs through initiatives
In recognition of the critical role that
are using Aconex on projects valued at such as the New Realities awareness
communications infrastructure plays for the
over $45 billion worldwide. campaign and its PositionMentor online
ICT and all other industries, the Government
careers and course information resource.
Major projects managed on Aconex announced its Broadband Framework in 2005.
include the Dubai International Airport,
City University of Hong Kong, White City
in London, and Eureka Towers, the tallest ‘AEEMA commends the Victorian Government for its
residential building in the world,
in Melbourne. initiative in recognising the importance of a strategic
Aconex has its head office and research approach to the development of its ICT industry.’
and development facilities in Melbourne,
Australian Electrical and Electronic Manufacturers’ Association
with offices in London, Dubai, Kuala
Submission, August 2004
Lumpur, Hong Kong, Shanghai, Vietnam,
India, Singapore, South Africa, Auckland,
and throughout Australia.

6 Victorian Government ICT Industry Plan 2005-2010

Time for review stakeholders in industry and the education
Computershare sector. A series of round tables in late 2004
As a long-term plan for a dynamic sector, the
was attended by more than 60 practitioners.
Since establishing in Melbourne in Government is committed to regular reviews
1978, Computershare has become of its ICT policy to ensure it continues to The views of the industry have been central
a leading technology provider for the respond to changing needs. to the Government’s deliberations on new
global securities industry, providing initiatives and directions to further assist the
As part of this commitment, the Government
registry services and solutions to listed industry’s growth in pursuit of the long-term
began a formal review process in July 2004.
companies, investors, employees, targets identified in Growing Tomorrow’s
An issues paper released at this time
exchanges and financial institutions. Industries Today.
drew submissions from a broad range of
In 2005, it had a market capitalisation
of $4 billion and offices in 21 countries.

Computershare announced in 2003 that ‘AIIA would like to commend the Government for the
it would locate its Global Headquarters
and Operations Centre in Melbourne, energy it puts into promoting Victoria as a location of
creating 1,250 new jobs. The Centre is choice for ICT companies.’
expected to deliver an $800-million boost
to the Victorian economy by 2009. Australian Information Industry Association
Submission, August 2004
Computershare cited access to relevant
skills, the safety of the Australian
environment and the lifestyle in Victoria
as critical factors in its decision to invest
in the State.

Victorian Government ICT Industry Plan 2005-2010 7

The ICT Landscape
ICT remains a key enabling tool for the development of an innovation economy.

56 per cent to 74 per cent.3 Victorian productivity growth in the services sector
Current environment
communities also increased their use of ICT, over the past 20 years is attributable to ICT.7
The importance of ICT has not been
with household internet access rising from
diminished by the market instabilities ICT is also increasingly converging with
32 per cent in 2000 to 53 per cent in 2003.4
of the early years of this century. other industries and other scientific
ICT remains one of the key enabling disciplines to create completely new
Global growth in ICT usage presents
technologies for business. As the OECD has streams of opportunity such as
significant opportunities for a local
argued, investment in ICT capital by business bioinformatics and nanotechnology.
industry that is globally focused and
provides a continuing means of innovation that
internationally competitive.
is not delivered by any other form of capital.5 Victorian ICT capability
Global investment in ICT products and Local ICT capabilities remain vital. A local
Deep usage of ICT across the whole economy
services was recently estimated to be industry that is responsive to market demand
continues to contribute to productivity
$3 trillion and expected to continue for new products and services has the
growth. ICT was responsible for an estimated
growing at 8 per cent a year to at least potential to make a significant contribution to
contribution of 0.1 to 0.2 per cent to the
2007.1 This reflects the enduring importance the economy in its own right. The experience
acceleration in the high multifactor productivity
of ICT to consumers, businesses and of the industry over the past few years shows
growth experienced in Australia through the
governments across the world. It also that a focus on innovation and business
1990s and is expected to continue this role.6
provides significant opportunities for the fundamentals is necessary to ensure these
In some industries, the role of ICT has been
Victorian ICT industry. opportunities are not taken for granted.
particularly significant, with recent research
The industry instability of the early 2000s indicating that between 60 and 80 per cent of
inevitably shook market confidence in the
ICT sector. The leading markets in the USA
and Europe suffered the largest losses, but ‘Computershare is committed to Victoria and
the impact was also felt acutely in Australia
and Victoria.
the future of the local ICT industry. As a local ICT
Against this, the use of ICT has continued
company that has achieved scale and global reach,
to rise in Australia. Business ownership of we can make a strong contribution to an innovative
a computer rose from 76 per cent to 85 per
cent between 2000 and 2004.2 Businesses
and internationally competitive local ICT industry.’
with an internet connection rose from Chris Morris, CEO Computershare

World Information Technology and Services Alliance, Digital Planet 2004 (figures for 2003).
Australian Bureau of Statistics (ABS) Business Use of Information Technology, Catalogue No. 8129.0, 2003–04.
ABS Household Use of Information Technology, Catalogue No. 8146.0, Sept. 2004.
OECD, The Economic Impact of ICT, Measurement, Evidence and Implications, p.146, 2004.
Productivity Commission, ICT Use and Productivity: A Synthesis from Studies of Australian Firms, 2004.
Department of Communications, Information Technology and the Arts, Productivity Growth in Service Industries, Occasional Economic Paper, April 2005.

8 Victorian Government ICT Industry Plan 2005-2010

The Victorian ICT industry has shown strong Key Victorian ICT statistics, 2005 (% of national)
resilience in this period. Key industry-wide %
statistics are showing a return to levels 45
of prosperity comparable to those before
2001. Industry revenue, employment and 40 Victoria represents 25 per cent
exports are all climbing, and industry of the national population
sentiment suggests a period of growth
for the medium term.

In broad terms, Victoria accounts for 30

one-third of the Australian ICT industry
which in turn represents 1 to 1.5 per cent
of the global market. With revenue in excess
of $20 billion, annual exports worth around
$1 billion, and strong levels of R&D,
the Victorian ICT industry continues to be
an important contributor to the economic
Revenue Employment Private R&D University Enrolments in ICT
performance and wealth of the State.

Growing Tomorrow’s Industries Today

As ICT becomes a core part of the business • ICT professionals and ICT tradespeople
reported employment in the ICT industry
of other sectors in the economy, the ICT representing around 3.6 per cent of the
in 2001 at 65,000 people. The most
industry continues to blur at its edges. ICT Australian workforce10 which is higher than
recent statistics show Victorian ICT
capabilities and production are now evident Europe (about 2.5 per cent) and the USA
industry employment at around 71,000.8
in many industry sectors with: (about 2.8 per cent).
These statistics and Commonwealth
Government research suggest that ICT • around 55 per cent of Australia’s Victoria has retained its position as the
industry employment has now settled into approximately 355,600 ICT leading producer of ICT skills over the period,
a more sustained pattern after marked falls professionals and ICT tradespeople with the highest proportion of university
through 2001.9 Victoria’s share of national employed by firms outside the enrolments ranging from 35 per cent of the
employment in ICT has remained steady at traditionally defined ICT industry; and national figure in 2001 to 39 per cent in 2004.
30 per cent — a strong result for the local Overseas students consistently make up about
industry over a period of sustained downturn. one-third of all enrolments in Victoria.

Whitehorse Strategic Group, July 2005. Whitehorse employs ABS statistical categorisations to model ICT industry employment. The ABS adjusted its statistical
categorisation for ICT employment in 2003; it is not directly comparable with the 2001 figure.
Commonwealth Department of Education and Workplace Relations, ICT Vacancy Index, January 2002–August 2005; DEWR Vacancy Report, August 2005.
ABS, Quarterly Labour Force Survey, November 2004 and A Willi Petersen, Peter Revill, Tony Ward & Carsten Wehmeyer, Towards a comprehensive European
e-skills reference framework: ICT and e-business skills and training in Europe, Final synthesis report, Cedefop 2004.

Victorian Government ICT Industry Plan 2005-2010 9

The strength of the local higher education all sizes around the world. The emergence
IR Gurus Interactive sector and the graduates that it produces of software standards and accreditation
remain key reasons for international will place further pressure on local ICT
IR Gurus Interactive is an electronic
companies to locate in Victoria, as well as companies to measure up. The limited size
game developer excelling in the
high levels of experienced local and migrant of the domestic market will make it critical
fastest growing segment of the
ICT workers. for enterprising and innovative Victorian ICT
worldwide entertainment industry –
suppliers to compete internationally.
entertainment software. Founded in Victoria remains home to a significant
1996, it has gained a foothold in a number of large companies – including The recent emergence of Asia as an
US$40 billion industry dominated by many foreign-owned multinationals – either influential ICT region will present new
major US publishers and Hollywood headquartered or with offices here. However, partnering opportunities and new pathways
licensed product. like most industry sectors, the ICT industry into overseas markets. Spending on ICT in
overwhelmingly comprises small companies Asia is projected to grow at an average of
IR Gurus is one of Australia’s most
with fewer than 20 employees. more than 9 per cent over the next few years.11
successful game studios – responsible
Victoria is well-placed to take advantage of
for the development of Australia’s
Future environment regional growth with the presence of eight of
top-selling AFL football games and
With signs of ICT industry recovery and growth the top 15 Indian ICT companies in the State.
the world’s first computer game based
in recent years, and an overall business This may well prove to be one of the future
on Gaelic football – both for Sony
environment that has experienced five years strategic advantages for the local ICT
Computer Entertainment.
of strong economic and employment growth, industry. Asian-based companies operating
The company has also broken into the local companies can feel optimistic about the in Victoria will provide a valuable link for local
international mainstream with Heroes of future. While these conditions are favourable companies into global supply chains as well
the Pacific, a World War II aerial fighter for the local industry, there will continue to as skills and employment opportunities for
simulation game. be significant challenges ahead to meet the local ICT workers.

A key to IR Gurus’ success has been needs of local and export markets. Exploiting the strategy of many technology
its ability to retain intellectual property The Victorian ICT industry will continue to users to ‘globally source’ ICT, Indian
rights in its titles, allowing it to build face strong competition from companies of companies in particular have been successful
on previous successes and create
franchises rather than one-off games,
thereby supporting its growth from 30 to
more than 60 staff since early 2004.
‘We wouldn’t have been able to sell “Heroes of
the Pacific” internationally without the assistance
of the Victorian Government’s Game Development
Kit Program.’
Ben Palmer, Executive Producer
IR Gurus Interactive

World Information Technology and Services Alliance, Digital Planet 2004 (figures for 2003)

10 Victorian Government ICT Industry Plan 2005-2010

in attracting outsourced work from Australia
and other markets. While there have been Hitwise
concerns about the difficulty for local
Melbourne-founded ICT/Online
companies in competing with the mix of
Competitive Intelligence company
capability, capacity and low wages offered
Hitwise is the world’s leading provider
in Asia, it is too early to conclude whether
in its field.
Australia will be a net beneficiary or loser from
this trend. Most commentators agree that an Founded in 1997 in Melbourne, Hitwise
effective way to offset the movement of jobs founders targeted a niche market for the
offshore is to ensure that workers have access measurement of website visitors.
to the means to continually upgrade their
Hitwise came up with the idea of
skills so as to stay ahead of the overseas
tracking marketing data at the ISP level,
talent. The ICT industry will need to work
and developed software that rests
hard to ensure that it continues to develop,
with the ISP and monitors a volume of
attract and retain the high-end technical and
sites that could not be achieved by a
business skills that it needs in such a fluid
traditionally small review panel.
employment environment.
The company’s proprietary data
At the same time, users will continue to
capture, analysis, processing,
develop an increasingly sophisticated
aggregation and categorisation
understanding of the role of ICT in business,
technologies took years to develop and
and be more strategic and demanding of
are constantly updated to keep pace
vendors when making ICT investment. There
with a rapidly evolving industry.
will be increasing emphasis on solutions
addressing security, privacy and reliability The company now has more than 1,000
issues. The investment market will also be clients worldwide, and has expanded
more exacting of ICT companies and require internationally from its Melbourne
more rigour and discipline in the industry’s base into New Zealand, Hong Kong,
efforts to raise capital and fund new ventures. Singapore, the United Kingdom and the
USA. Hitwise claimed the Information
ICT will continue to evolve rapidly, with a
and Communications Technology
constant stream of new technologies and
Award in the 2005 Governor of Victoria
applications emerging in shorter time frames.
Export Awards.
The time from development to commoditisation
of technology will tighten so that the local
industry must move quickly to bring products
to market before its competitors.

Victorian Government ICT Industry Plan 2005-2010 11

Playing to current and Table 1. Victorian ICT industry strengths
emerging strengths
Products/Services Research Findings
To compete effectively, Victorian companies
must continue to distinguish themselves
from overseas providers by exploiting current This is a key strength for Victoria, taking in the provision of
areas of competitive strength and by using telephony and data services. It encompasses the operations of
innovation to establish new ones. This means Communications Telstra, Optus, Primus and other carriers and represents a large
the industry must not only capitalise on services proportion of the ICT employment and revenue for the State.
current strengths but ensure it is aware of Demand for communications services, particularly broadband
competition and market developments that services, is likely to experience continued growth.
shape the major opportunities for the future.

Independent research commissioned by This subsector includes the provision of ICT consultancy services
the Victorian Government in 2004 suggests and the installation, integration and maintenance of business ICT
Victoria’s ICT strengths have evolved since systems. Developing on the back of trends to outsource functions,
2001 and that there continue to be areas Business systems
local providers are well-placed to develop combined technology
where the Victorian ICT industry can be solutions
and service solutions that allow businesses to carve out whole
globally-competitive (see Table 1). business functions at reduced overall cost. Companies currently
operating in Victoria include IBM, EDS, Infosys and Oakton Ltd.

There is broad scope in software development for local

suppliers to continue to develop markets in specialised industry
sectors, such as financial services, health or transport. Solutions
are often highly specialised or customised to meet particular
Vertical applications
sector needs and rely on a deep understanding of the target
market. The level of specialisation required has led to a large
number of Victorian companies such as Retail Directions Pty
Ltd, Ocean Software Pty Ltd and Aconex Pty Ltd successfully
developing vertical applications.

Microtechnology refers to technology with features near one

micrometre in size. It underpins the main capabilities for
a diverse range of applications and sensor technologies,
including consumer electronics, automotive, health and defence.
Victoria has strong microtechnology research capabilities and
manufacturers in significant vertical sectors such as automotive
(Robert Bosch, Siemens, GM Holden), communications (NEC,
Agilent, CEOS) and biomedical (Compumedics).

12 Victorian Government ICT Industry Plan 2005-2010

Products/Services Research Findings

Exponential growth in web applications is expected over the

coming years as demand rises for seamless connectivity within
and between businesses. Victoria’s strength in web applications
is enhanced through expertise in two of the major development
Web applications
platforms – the Java-based J2EE and Microsoft’s .NET as well as
more general capabilities in open source software. Victoria has
a substantial base of development capability in these platforms,
including three industry clusters with a combined membership of
around 300.

The global electronics games industry has been growing rapidly

for the past two decades with global revenue now surpassing
cinema box office sales. Victoria is home to most of the Australian
Electronic games games industry with production companies such as IR Gurus
Interactive, Torus Games and Tantalus Interactive, the national
headquarters of the Game Developers’ Association of Australia
and the annual Game Developers’ Conference.

Photonics refers to the technology of generating and harnessing

light and other radiant energy. It is the basis for developments
in fibre-optic communications. Victoria’s main strengths are at
Photonics the R&D end of the market where there is a focus on high-end
technical skills and the development of intellectual property.
The presence of facilities such as NICTA, REDlab and COLT
underpin world-class activity in the State.

Horizontal applications solutions also require specialisation but,

unlike vertical applications solutions, they are relevant to users
Horizontal across sectors. Examples include eSecurity solutions, human
applications resources solutions and eLearning solutions. The most prominent
solutions example of Victorian capability in horizontal applications solutions
is Computershare, which provides share registry and related
solutions across industry sectors.

Victorian Government ICT Industry Plan 2005-2010 13

Victorian Government ICT Industry Plan
The Victorian Government believes the ICT industry will continue to play a critical role in
the economic development of the State.

ICT Industry Plan The new framework does not distinguish

between local and international markets but
most likely to occur. This could be through
new R&D activities between the research
The local industry is ultimately responsible operates in a global context. It recognises sector and ICT companies. It could also be
for its own future. However, the Government the increasing complexity of the ICT industry in new collaborative activities between the
can play a valuable role in ensuring an as it becomes more integrated with other ICT industry and other economic sectors with
environment that supports the growth of the sectors of the economy. It illustrates the global reach – such as financial services.
ICT industry and the application and use of growing linkages between the ICT industry
advanced ICT across the economy. The Government recognises that it can
and other industry sectors. It highlights
play a role in expanding innovation through
The Victorian Government’s ICT Industry the key importance of Victoria’s research
facilitating relationships, encouraging more
Plan 2005-2010 reflects industry changes and education sector to the industry’s
collaboration, influencing skills development,
since 2001 and re-commits the Government future growth. It also recognises that, to a
supporting the establishment and access to
to its vision and objectives set out in its large degree, all sectors rely on common
key infrastructure and promoting R&D.
10-year industry plan — Growing infrastructure such as skills, communications
Tomorrow’s Industries Today. and capital. The new framework will guide the
Government’s strategies and activities in
The plan is consistent with the strategic Importantly, the Government considers that
continuing to support the development
issues identified in Growing Victoria where these elements intersect is where
of the ICT industry.
Together – the Government’s vision for innovation and competitive advantage are
Victoria to 2010 and beyond:

• more quality jobs and thriving,

innovative industries across Victoria

• high-quality education and training for ICT Industry

lifelong learning.

It also reflects the identification of ICT as a

key strategic priority in the Government’s
Innovation Statement, Victorians. Bright N NO
Ideas. Brilliant Future, and will contribute VA T

to the implementation of the Government’s



broader industry development policies as



set out in Victoria: Leading the Way and Skills


Opening Doors to Export. Capital





To achieve the Government’s vision and

objectives for the ICT industry, Growing

Tomorrow’s Industry Today included a Research and Industry

Framework for Growth to guide government Education Sector Users of ICT
activity. This analytical framework has been
refined to take account of changes in the
market environment over the period.

14 Victorian Government ICT Industry Plan 2005-2010

Strategies Working with industry
Under the ICT Industry Plan, the Government Delivering on these strategies will require a
will pursue the following strategies: partnership between industry, government
and the research and education sectors.
The Government is committed to working
Focus Strategy
with the key industry associations in areas
where there are common objectives and
• Promote Victorian ICT industry capabilities in key
broad-based benefits to industry.
international markets.
Playing on a Since 2001, the Victorian Government has
• Pursue strategic ICT investment in Victoria.
global stage provided substantial support for the work of
• Encourage local companies to be more innovative and industry associations. Under the ICT Industry
globally focused. Plan the Government will look to these
associations to form more strategic alliances
with the Government and between themselves
Encouraging strategic • Encourage the Victorian ICT industry to be more
to achieve mutually desired outcomes.
collaboration collaborative.
Measuring success
The Victorian Government will continue
• Ensure that government ICT procurement practices
to measure the success of its policy
encourage competition and innovation while pursuing
Linking with the approaches to ICT industry development by
value for money.
domestic market the measures originally set out in Growing
• Facilitate greater understanding by the ICT industry of Tomorrow’s Industries Today. In a rapidly
opportunities in strategic industry sectors. changing environment, such measurement
remains vital to ensure government activity is
well focused and achieving results.
• Support the establishment of future infrastructure for
The Government will also work with the
advanced ICT research and application.
Investing in innovation Commonwealth and other State and Territory
• Maximise opportunities for industry engagement with local Governments to improve the availability and
research institutions. timeliness of ICT-related data to track the ICT
sector’s performance.

Building the skills • Help education and training providers to align their courses
to succeed with industry needs.

• Ensure the Victorian ICT industry has access to world-class
infrastructure and services.

Action and initiatives under these strategies are identified in the following sections.

Victorian Government ICT Industry Plan 2005-2010 15

Playing on a Global Stage
Victorian ICT companies will need to be globally focused to grow and prosper.

Current situation successful in attracting outsourced work links with universities, research institutes and
through a combination of scale, competitive innovative local companies. Over time, these
In international terms, the Australian market
wage rates and strong credentials in software links will help local companies make inroads
is relatively small, with Victorian investment
development. Victorian companies will into Asian and other markets.
in ICT accounting for less than 1 per cent of
increasingly face this type of competition from
global demand. The market for ICT products Victorian companies can be more
emerging markets in Asia and elsewhere,
and services is global and open, and high competitive in a global market through
but can reap benefits from global sourcing
levels of ICT uptake make Australia an standards and accreditation. Capability
strategies in other countries. It is significantly
attractive market for foreign ICT suppliers. Maturity Model Integration and the ISO
cheaper to operate a business in Australia
What few barriers foreign companies face to group of standards provide ways to
compared to the USA or Western Europe.
selling here are continually being reduced demonstrate capabilities in software
Victoria has people with advanced ICT and
through free trade agreements or by engineering that can be important
business skills as well as cultural similarities
advances in technology. In this environment, credentials for some markets. Underpinning
with major overseas markets. These strengths
local companies need to understand and these types of standards is the discipline of
must be fully exploited by the local industry
benchmark themselves against international software metrics which provides the tools
and effectively promoted overseas.
competition from the outset. for organisations to measure, benchmark
International companies in Victoria, whether and improve software engineering process
As ICT use spreads internationally, new markets
part of the ICT industry or not, can provide and projects over time. Victoria has world-
continually emerge. These can be country
entry into global supply chains. ICT leading expertise in software metrics and is
markets – such as the growth of China as a
multinationals can help to build the skill base the birthplace and home of the International
market of interest to Australian ICT – or global
of local suppliers, drive cutting-edge R&D, Software Benchmarking Standards Group
markets for particular technologies – such as
provide opportunities for collaboration and ( Where markets require,
environmental technologies. To make the most
stimulate innovation and productivity. The software process improvement and
of these markets, the local ICT industry needs to
experience of Indian companies locating in accreditation have the potential to deliver
know them deeply, be able to access them, and
Victoria has already shown some of these substantial economic benefits through
be aggressive in pursuing opportunities.
benefits. The Government has worked hard to improved project management and
The local industry will also need to match embed such investments by helping establish better products.
or better the skills of their international
competitors in accessing new and traditional
markets. Company leaders, particularly
in small organisations, will need strong
entrepreneurial and business skills as well
‘Trade missions provide SME companies such as
as the technical skills to produce innovative Morpheum with opportunities not only to establish
products and services.
better Victorian networks but also grow our business
Companies around the world are looking
to increase their productivity through
with an eye to international trends.’
outsourcing arrangements in areas such Nicole Dixon
as ICT services. India has been particularly General Manager, Morpheum

Victorian Government ICT Industry Plan 2005-2010 17

Role of Victorian Government • announced its Opening Doors to Export
Infosys Technologies Plan in 2004 – a whole-of-government
The Victorian Government can play a
Australia critical role in helping local companies
policy and suite of programs and services
to help Victoria’s export performance
In late 2002, Indian consulting and ICT – particularly smaller companies – access
services firm Infosys announced the international markets. • provided grants to more than 300 local
establishment of a 100-employee Global ICT companies to attend international
The Government will urge the industry and
Development Centre in Melbourne. trade fairs under the Trade Fairs and
other governments to more aggressively
Missions program. Recipients reported
About a year later, Infosys increased promote Victoria and Australia’s capabilities
projected export sales, due to their
its commitment to the local market by to strategically important markets. A more
attendance, of more than $260 million
merging with Melbourne-based coordinated approach to promotion will
Expert Information Systems (Expert). support other efforts by the Government to • ran a series of overseas missions to
Expert brought its strong knowledge identify and attract strategic ICT investment strategic markets including the USA,
of the Australian market and its to the State from around the world. India, Japan, China, Germany and France.
Australian staff to the new entity, An ICT mission to India in 2004 resulted
The Government will continue to provide
Infosys Technologies (Australia) Pty in $6.5 million worth of deals alone
support for companies planning and
Ltd. According to Expert’s founder and • provided on-ground support and use
executing export strategies. It will also expand
Infosys Australia CEO, Gary Ebeyan, of fully equipped transit desks for
its in-market support for local companies
the merger was a natural fit combining companies seeking to enter the USA
to enable better access to information from
Expert’s local knowledge and high-end (San Francisco) or China (Shanghai,
the market and assistance for companies to
skills with Infosys’ best practice models, Hong Kong) markets under the Access
achieve results from overseas visits.
global experience and reach. America and Access China programs.
The Government will also work with industry,
Infosys Australia hired the best local These offices provide support for
ICT users and the higher education sector to
talent, partnering with local companies establishing contacts, convening
ensure local companies can meet emerging
and contributing to the growth of meetings, gathering market intelligence
standards required by the market and have
Australia’s ICT industry. It is committed and assessing business opportunities
access to the skills they need – in particular
to maximising its use of local skills and • established the US$6 million Victoria-
entrepreneurial skills – to compete effectively.
blending this high-end local expertise Israel Science and Technology R&D Fund,
with the scale and technical skills of its Strategies which was announced in an Agreement
global parent. signed between the Israeli and Victorian
• Promote Victorian ICT industry
In late 2004, Infosys selected software capabilities in key international markets. Governments in February 2005. This builds
supplied by Melbourne ICT company on the Memorandum of Understanding
• Pursue strategic ICT investment in Victoria. on Biotechnology Collaboration signed
80-20 Software to supplement its own
project management and delivery • Encourage local companies to be more by the two governments in June 2004.
systems into its global network. innovative and globally focused. The VISTECH R&D Fund aims to provide
support for joint commercially focused
Today Infosys Australia employs about
Current initiatives science and technology R&D projects
650 staff from its Melbourne head office.
between Victorian and Israeli companies,
The Government has provided the ICT
in areas including biotechnology, life
industry with a range of assistance and
sciences and ICT
support in developing export markets:

18 Victorian Government ICT Industry Plan 2005-2010

Memory Grid, Australian Centre for the Moving Image (Photo: Peter Clarke)

• demonstrated the capabilities and skills opportunities in this important market by

of leading Victorian ICT companies to appointing a dedicated ICT investment Pacific Internet
international markets as part of Spotlight and business development officer at
Pacific Internet operates in seven
on Victoria the new Victorian Government Business
countries across the Asia Pacific and
Office in Bangalore
• utilised expatriate skills and knowledge is listed on NASDAQ. We specialise in
through the Victorian Expatriate Network, • urge the establishment of a collaborative assisting SMEs expand their markets
an international network of science, approach to promoting our ICT capability beyond their own country through
technology and ICT professionals internationally with other Australian delivering secure internet products
governments and services.
• offered a range of services and
support to assist Victorian firms to • open up access for local companies We chose Melbourne as our
become internationally competitive, to gain internationally recognised Australian head office because of the
including development of export and skills needed to compete overseas genuine desire and enthusiasm by the
marketing plans through the Grow by establishing strategic partnerships Victorian Government and the business
Your Business program. with leading international business and community generally to engage in Asia.
entrepreneurship schools
This mind-set was so important in
New initiatives
• help local ICT companies to gather attracting the best people and forming
Under this Plan, the Government has market intelligence and identify strategic the partnerships needed to grow our
already announced that it will: opportunities in high-potential overseas business quickly and profitably.
• double the support for international markets through a series of Emerging
Dennis Muscat
networking, exhibiting and exporting Markets Strategies
Managing Director
by the local ICT industry through a • provide international and domestic Pacific Internet (Australia) Pty Limited
re-vitalised ICT Trade Events and companies with up-to-date access to
Export Assistance Program. local ICT capabilities through VicIT
New categories introduced
under the program support first-time • boost existing industry and R&D
sole exhibitors or group exhibitors strengths by identifying and attracting
high-end ICT investments to the State
• deliver crucial training, mentoring and
business relationship development • monitor market requirements for
skills to Victorian ICT companies so software quality accreditation and
they can develop a three to five-year develop appropriate responses in
export focused business action plan. consultation with industry and other
The Developing Business Skills for Australian governments
ICT Entrepreneurs program is a joint • investigate the potential for Victoria
initiative with the AIIA. to capitalise on its leadership in
Building on this support, the Government will: software metrics.

• build on the substantial Indian

investment already in the State and
assist Victorian companies to access

Victorian Government ICT Industry Plan 2005-2010 19

Encouraging Strategic Collaboration
There are significant opportunities for Victorian ICT companies to increase their scale,
skills and success through strategic collaboration.

Current situation Collaboration with the education and

research sectors can ensure the right people RFID Association of
The Victorian ICT industry is embedded
in a strong innovation culture with world-class
with the right skills are available to industry. Australia
Collaboration can also provide access to
public and private research institutions RFID Action Australia, a cluster of
innovative research that can underpin the
and leading universities that produce the Victorian businesses, was established
development and commercialisation of new
largest number of IT graduates in Australia. in 2004 with Victorian Government
products and services.
The industry is surrounded by many assistance. Within a year, it became the
strategic, high-performing industries, such The Government’s Combined Advantage RFID Association of Australia (RFIDAA),
as transport, agriculture, biotechnology and study – released in 2004 – confirmed the based in Melbourne.
financial services. These are increasingly existence and effectiveness of collaborative
This national peak body is a
seeking innovative ICT solutions to enhance partnerships. While these partnerships have
successful example of collaboration
and improve their core business functions a positive impact on the development of
among a broad range of users,
and to pursue new business opportunities. industry-specific skills, the study also found
solutions providers, researchers,
that higher levels of collaboration are needed
For many ICT companies, collaboration industry associations, educators, and
to overcome market barriers and maximise
with other organisations through large Australian organisations including
R&D outcomes.
partnerships, alliances and networks is the Australia Post, Alien Future Technology,
best way to access the necessary skills, The establishment and ongoing Australian Food and Grocery Council,
experience and resources required to build development of more formal types of CSIRO, GS1 Australia, Savi Technology,
scale, innovate and go global. collaboration, such as clusters, can also and VeriSign Australia.
generate benefits including driving innovation,
Collaboration takes many forms and has the Research indicates that US
boosting exports, attracting investment
potential to generate significant benefits for manufacturers will spend more
and generating high-quality jobs and new
individual organisations and the industry as than $US5 billion on RFID tags and
business opportunities.
a whole. infrastructure over the next three years.
Australia does not have a particularly The RFIDAA is uniquely placed to access
By partnering each other, smaller
strong collaborative culture. However, this global opportunity and play a key
companies can explore shared
in Victoria, there are many examples of role in Victoria’s economic growth.
opportunities and address common
companies pursuing opportunities to work
challenges. Partnering larger companies A critical mass of RFID vendors
with other organisations. While this is
and multinationals gives these companies and potential users is based in
encouraging, it is clear there is potential
opportunities to gain international exposure Melbourne and RFIDAA is able to
to increase collaboration within the ICT
and access to global supply chains. drive collaboration between these
industry. This requires long-term
At the same time, collaboration gives innovative ICT professionals and key
commitment and investment from
larger companies access to local market Victorian user industries, such as
industry to generate ongoing benefits
knowledge, innovation and research. retail, automotive, manufacturing,
for the Victorian economy.
and transport and logistics.

Victorian Government ICT Industry Plan 2005-2010 21

Role of Victorian Government The Government is well-placed to
Senko Advanced facilitate collaboration by using its industry
The Victorian Government recognises
Components (Australia) the important role that collaborative
networks and resources to foster linkages
between organisations and to support the
Senko is a global leader in design, activities can play in overcoming barriers
establishment of these activities. It can also
manufacture and original equipment to growth for small companies and growing
encourage greater collaboration between
manufacturer (OEM) of fibre optic the ICT industry into an innovative, globally-
industry and the education sector.
product components. From its Melbourne focused sector.
base, it services clients including Strategies
The Government considers that the level of
leading Victorian universities, American
collaboration already occurring in Victoria is • Encourage the Victorian ICT
multinationals, Japanese industrial
encouraging, but believes greater activity industry to be more collaborative.
conglomerates, telecom operators,
can and should occur.
prominent international universities and
Government research laboratories. Collaborative activities must be largely Current initiatives
driven by industry, not government, if they The Government has undertaken a
In 2005, Senko successfully bid for number of initiatives to encourage
are to be sustainable in the long term.
the Thai COLT (Thailand Collaborative greater collaboration:
However, specific targeted action by
Optical Leading Tested) project to
government can stimulate collaboration
develop a world-class broadband • provided more than $600,000 to support
and help existing collaborative activities
communications network in Thailand. the establishment of seven industry
move to the next stage of development
Senko is also pursuing other clusters in key subsectors including web
in order to generate benefits for the ICT
opportunities to deploy fibre to the home services, open source software and
industry and the Victorian economy.
technologies with a particular focus on spatial business applications
India, Italy and Bangladesh. • supported the establishment of the
Senko has played a critical role in the Victorian Microelectronics Designers
development of the local photonics
NEC Australia Network, the Victorian Photonics Network
sector, particularly through its and the eLearning Network
The support the Government has
participation in the Victorian Photonics shown has not only helped NEC • worked with the corporate and education
Network (VPN). It is also a platinum continue strengthening its presence as sectors to establish the Victorian Women
member of the Board of the Fiber to a sector leader in the ICT industry, but it in ICT Network to develop practical
the Home Council Asia Pacific. has seen, through the strong leadership programs designed to attract and retain
of the Government, rapid economic women in the ICT Industry
Building on relationships established
development of the State, significant
with the education sector through the • encouraged engagement between users
consistent growth in employment in
VPN, Senko has developed a number and producers to develop projects as part
the ICT sector and the ongoing
of interactive photonics education of the Government’s eCommerce policy,
investment by business – as the major
kits tailored to the Victorian education Victoria’s eCommerce Advantage
beneficiaries of a focused committed
curriculum. These kits are being used
Victorian State Government. • released the Victorian eLearning
by many Victorian schools to support the
study of photonics from the middle years Strategy in 2004 to provide support to
Toshiharu Iwasa,
through to more advanced learning at local eLearning companies. The Strategy
Managing Director,
VCE level. emphasised the need to build scale
NEC Australia
through collaboration, stimulate local

22 Victorian Government ICT Industry Plan 2005-2010

demand through awareness-raising
and improving infrastructure and QSR International In recognition of this, the company has won
three Australian Export Awards in 2001,
improve global competitiveness
Founded in Victoria in 1995, QSR 2002 and 2004.
through standards and facilitating
International is the world’s leading supplier
access to overseas markets. The company’s success rests on a
of qualitative data analysis software.
commitment to deliver software that
New initiatives QSR software helps researchers or anyone evolves in line with researchers’ and users’
Under this Plan, the Government has working with information, rather than needs. QSR’s developers and business
already announced that it will: numerical data. From in-depth interview analysts have worked closely over
and focus group transcripts, through many years with a range of individuals
• improve graduates’ job readiness,
to survey results and field notes, QSR and organisations to understand their
enhance the attractiveness of ICT
software helps users to systematically research goals and the ways they work
degrees and increase the number and
manage their information. with information. This knowledge of user
quality of linkages between industry and
the education sector by undertaking a requirements is augmented with feedback
QSR provides researchers around the
pilot of the Industry and Universities gathered by QSR’s expert help desk and
world with support, resources and training
Collaboration Program, with support consulting team.
and is the only developer in its field to have
of up to $450,000. an international conference series on its In June 2005 QSR was awarded a
Building on this support, the Government will: software. The company has an estimated $1.1 million Commercial Ready grant
300,000 software users worldwide. from the Commonwealth Government
• stimulate collaboration between
It exports to more than 90 countries and to help take the latest in the series of
organisations in the Victorian ICT sector
accounts for around three percent of research software products, NVivo 7,
to build industry strength with support
Australia’s total IT software export earnings. to a global market.
of up to $1 million over three years for

the establishment of new and

emerging clusters and networks
in strategic areas; and
‘AIIA notes with interest the effort (the Government)
the development and growth of
existing collaborative organisations
is making to promote the development of industry
• drive increased collaboration between
clusters and we acknowledge the key impact
the industry and the education and successful clusters can have on the development of
research sectors by developing tools
to help them identify and exploit
the Victorian ICT industry. We believe that these have
partnership opportunities. excellent potential to facilitate the growth of the local
ICT sector’
Australian Information Industry Association
Submission, August 2004

Victorian Government ICT Industry Plan 2005-2010 23

Linking with the Domestic Market
Carefully targeted local user markets provide a springboard for Victorian ICT companies
to grow their businesses here and overseas.

Current situation Similarly, the importance of ICT in

new fields of endeavour – such as in Ocean Software
ICT now plays a critical role in the success
bioinformatics and nanotechnology
of most industry sectors and is relied on Established in 1993 in Melbourne,
– brings new challenges and opportunities.
to improve performance and deliver a Ocean Software provides operations
In these cases, ICT users are seeing the
competitive edge. As a result, investment and training information management
potential of new technologies and wanting
in ICT by business has increased over the software for use in defence and
dedicated ICT responses that underpin new
past 10 years and is expected to continue. paramilitary environments. Its niche focus
capabilities and drive further R&D.
The value of the domestic market may be is reflected in its workforce of 50 specialist
a fraction of the global total, but high levels Having a specialist understanding of an staff, combining experienced industry
of ICT uptake combined with a strong base industry, research or government sector is leaders and former defence personnel.
of sophisticated use can give local ICT becoming an essential part of developing
Ocean Software has harnessed this
suppliers a strategic foundation for growth highly-valued, marketable ICT products and
expertise to develop innovative and
and export. services. However, achieving this demands a
practical ICT products geared to the
significant investment of time and resources
In the past few years, users have become specialist needs of the international
in understanding a sector and the ability to
more strategic in their application of ICT. defence industry.
respond innovatively to needs.
They are more able to recognise the
Ocean Software’s flagship product,
possibilities of technology for their own ICT providers that have succeeded in
FlightPRO™, was developed for military
businesses and less tolerant of ICT solutions this strategy have often combined
squadron operations and training
that do not precisely fit business needs. substantial past experience in an industry
management and is used by the
Many businesses are also actively looking sector with more recent ICT expertise.
Australian Defence Force and defence
for cheaper, more efficient or better ways Others have taken the time to network
customers in the UK and Canada, helping
to manage their ICT investment, such as or form strategic alliances with particular
Ocean win the ‘emerging exporter’ award
through outsourcing arrangements. businesses in a target sector to build up
at the Governor of Victoria Export Awards
their knowledge for the longer term.
Highly sophisticated ICT users in global 2004. Ocean plans to build on its success
Because opportunities will generally be
industries – such as the financial services, by expanding into the USA and
focused on emerging business needs,
automotive and transport sectors in Victoria South-East Asian markets.
they will call for a variable mix of
– provide fertile ground for testing local
specialisation, R&D, innovation, intellectual The company has offices in Melbourne,
ICT capabilities as well as opportunities
property development and collaboration. Manchester and Montreal, and a
to develop and hone them for a broader
They are also more likely to result in representative office in Dubai.
market. This can lead to the creation of
longer-term business relationships and
innovative and unique new products with
export opportunities.
significant global markets.

Victorian Government ICT Industry Plan 2005-2010 25

Role of Victorian Government • Facilitate greater understanding by the
nSynergy ICT industry of opportunities in strategic
The Victorian Government is one of the largest
industry sectors.
Melbourne-based software vendor and purchasers of ICT products and services in the
service provider nSynergy specialises State. There are many areas of government
Current initiatives
in developing collaboration platforms in which new and innovative applications and
for the legal industry. services are needed and these can be valuable The Government has undertaken a number
opportunities for local companies developing of initiatives to link Victorian ICT companies
Since launching LegalNet, a software with local business:
tailored solutions. The Victorian Government is
platform for collaboration between
committed to reducing the costs to business of • established the eServices Panel as
law firms and in-house legal teams
winning ICT work. It also recognises the scope a whole-of-Victorian Government
in early 2004, nSynergy has
to support ICT industry development through panel covering specific areas of ICT
achieved significant success in the
improved procurement practices. expertise designed to help Victorian
Australasian market with 30 of the
top 100 Australasian companies The eServices Panel has addressed SME ICT companies do business with
choosing LegalNet as their preferred some procurement barriers over the government. By November 2005,
legal management solution. last three years and provides more more than $30 million of business had
flexibility in adapting to different project been placed with panel members with
Five months after opening its London 70 per cent of projects performed by
and contractual circumstances.
office in mid-2004, nSynergy secured Victorian companies
contracts with some of the top 50 UK Understanding user needs, developing
companies, including private practice market strategy and responding to emerging • co-funded and participated in the AIIA
law firms. opportunities are the responsibility of ICT – Government Symposium – an annual
companies. However, government can help symposium to brief industry on the ICT
LegalNet helped nSynergy win the strategies and technical needs of key
reduce some of the barriers for companies
2005 Microsoft Global Export Potential Victorian government agencies and
taking these steps.
Award at the Consensus Software outline key government ICT priorities
Awards, the only independently-judged The Government can facilitate greater
awards for Australian software. interaction between users and local suppliers • supported, in partnership with the AIIA,
of ICT. It can help promote local industry further industry symposiums on the retail,
The company has benefited transport, water utilities and education
strengths and provide better information
enormously from research partnerships sectors as well as Commonwealth Games
on the ICT needs of global advanced-use
with Telstra and Microsoft. nSynergy 2006, as a way to highlight business
sectors. These include financial services,
is a Microsoft Certified Partner using development and ICT issues affecting
health, retail, construction, energy, and
the .Net platform and LegalNet was specific industry sectors. More than 500
transport and logistics.
developed from an in-house CRM ICT companies have attended these
system implemented by Telstra.
Strategies symposiums since 2002

• Ensure government ICT procurement • established VicIT as a way for

practices encourage competition and Victorian ICT companies to market their
innovation while pursuing value for money. capabilities to an international audience.

26 Victorian Government ICT Industry Plan 2005-2010

New initiatives • Strengthen arrangements for the

Building on this support, the Government will:

highly successful eServices Panel, Acumentum
in anticipation of its renewal in the first
Acumentum is a user-centred
• encourage greater innovation and half of 2006. In addition to potential
design company based in Melbourne
reduce costs to business of working with new service categories, the new panel
that builds powerful, intuitive online
government by amending its whole-of- contract will incorporate changes to
applications. In 2003, the Victorian
government ICT policies to: the intellectual property, liability and
Government licensed one of our most
insurance provisions discussed above.
establish a default position by which successful products, ScenarioBuilder™
ownership of intellectual property in • Explore ways to help the ICT industry including some customised features for
ICT developed under contract vests make strategic decisions about use by agencies in the Department
in the contractor rather than in the interaction and collaboration with of Justice.
Government locally-based industries that hold the
The State’s approach to intellectual
greatest potential for industry growth.
ensure that apportionment of property negotiated in this case
liability in ICT contracting reflects allowed us to retain control over
actual project risk and minimises improvements to the product that we
the need for ICT contractors to made in the course of this contract
bear unlimited liability while meeting the current and future
business needs of each agency.
ensure that types and levels of
ScenarioBuilder™ has now been taken
insurance required in ICT contracts
up by Victorian Business Master Key
are appropriate having regard to
and Local Government Compliance
actual project risks
Project EasyBiz. This flexible approach
ensure that tender documentation to intellectual property has allowed us
specifies the expected contract to continue to develop the product and
provisions for dealing with these enhance the services we have provided
issues (following appropriate risk to government and major corporations
analysis), or flags that these will be both here and overseas.
negotiated with shortlisted suppliers.
Russell Yardley
In the months ahead, the Government Managing Director
will start implementing these policies. Acumentum Pty Ltd
It will also ensure that government
ICT procurement officers are given
appropriate guidelines, education and
training to understand and act
on changes.

Victorian Government ICT Industry Plan 2005-2010 27

Investing in Innovation
Innovation through research and development will help ICT companies build future success.

Current situation This success is attributable to a broad

range of factors. Government policies have Daintree Networks
A quality base of R&D available to the local
been very supportive in the establishment
ICT industry is an essential part of its capacity Founded in 2003, Daintree Networks is
of leading-edge ICT R&D activities and
to be innovative, develop local intellectual a leading global provider of tools and
infrastructure such as research laboratories,
property and grow. Firms are also recognising services to assist in the development,
centres of excellence and other facilities.
that R&D needs to be used as part of a wider deployment and management of
Victoria also leads Australia in R&D skills and
system of innovation, rather than simply wireless sensor networks.
tertiary training. Alongside a strong graduate
relying on R&D to uncover new opportunities.
pool, Victoria has an ICT workforce capable The company has established a
Victoria performs strongly on investment of leading world-class R&D in traditional and leading position internationally as a
in ICT R&D by Australian standards. emerging technologies. These outstanding provider of design verification tools for
Recent research suggests Victorian private research resources and infrastructure are an products employing wireless sensor
sector ICT R&D accounts for as much as excellent platform for industry collaboration, and control networking technology.
42 per cent of the national total.12 commercialisation and growth.
Daintree began exporting in mid-2004
However, neither Victoria nor Australia ranks Victorian ICT companies continue to and has achieved significant sales
highly for R&D expenditure by international conduct R&D in established areas of to companies, universities and
standards. OECD figures on specific company telecommunications, software development, research laboratories in the USA,
expenditures suggest Victorian companies microelectronics and photonics. However, Japan and Korea.
spend substantially less on R&D activities the convergence of ICT into other sectors
Daintree Networks is an active member
compared to their international counterparts.13 has created a need for more diverse ICT
of the ZigBee™ Alliance, an international
Improving this ranking is a key challenge for the R&D expertise, such as in automotive, life
association developing cost-effective,
local ICT industry as well as other industries. sciences, financial services, transport and
low-power, wireless monitoring and
education, as well as into newer fields like
At a time when many global companies control products based on an open
optoelectronics and bioinformatics.
have rationalised their R&D operations, global standard. It also collaborates
Victoria has been able to maintain its position Technology is also leading to new, with NICTA, a partnership which
as the premier Australian state for R&D. more collaborative ways for research combines Daintree’s expertise in
During this period, Victoria has also been to be undertaken. These practices are network analysis with NICTA’s skills
successful in attracting and retaining major described as e-research, and the term in communications networking and
ICT R&D centres. A number of major R&D ‘grid’ is used to describe the underlying computer-based visualisation.
centres have continued to operate here enabling ICT infrastructure.
Daintree Networks is based in
(Agilent, VPI photonics, Telstra and Bosch),
Through e-research, collaboration extends Melbourne, where it maintains its
while some have consolidated their presence
within an organisation, across many R&D and manufacturing facilities,
with additional investment such as NEC and
organisations, across academic disciplines and has a sales and marketing office
Computer Associates. New R&D investments
and across geographic boundaries. in San Francisco.
have also been made by Satyam, Infosys,
The grid will enable accessing of data from
Daintree Networks and DEK.

Whitehorse Strategic Group, July 2005.
See ABS, Research and Experimental Development, Businesses, 8104.0, 2005.

Victorian Government ICT Industry Plan 2005-2010 29

new sources and the sharing of ideas and
NICTA – Victoria VRL is Victoria’s pre-eminent ICT research research in real time. It will reduce the time it
organisation undertaking world-class
Research Laboratory takes for research to find solutions, assisting
research into fibre and wireless broadband earlier discovery and ultimate application.
The Victoria Research Laboratory (VRL) and sensor networks. A notable example
was established by National ICT Australia is its NICTOR solution built around Role of Victorian Government
(NICTA), the Victorian Government and sensor networks technologies and smart
The Government recognises the critical
the University of Melbourne, on 11 June water management systems to increase
importance of innovation to economic
2004. NICTA is Australia’s ICT Centre economic water efficiency in the dairy,
performance. In knowledge-based economies,
of Excellence focused on ICT research, horticulture and viticulture industries.
innovation plays a crucial role in wealth creation
commercialisation, education and industry
The progress to date by VRL has been and is a key to global competitiveness. It is
collaboration. It has Commonwealth
impressive, both in terms of VRL’s the new products, processes and services
Government funding of $251 million.
achievement against its original research generated through R&D that give industries
VRL began operation in July 2004 commitment and the outcomes against and economies a competitive edge.
at the University of Melbourne Parkville R&D and commercialisation objectives for
The Commonwealth Government has the
campus. It is guided by a single research the NICTA organisation.
greatest capacity to influence Australia’s R&D
vision to ‘create the technologies to build,
Some highlights of VRL achievements in its performance, through taxation arrangements,
manage and exploit the networks of the
first year include: funding programs and support to the higher
future’. Three research programs have
education sector.
been established at the laboratory: • 14 invention disclosures/patents lodged
However, the Victorian Government will
• Sensor Networks – to promote the • three research projects showing strong
continue to play an important role in
establishment of a sensor networks commercial opportunities
supporting the establishment of strategic R&D
industry in Australia through the
• strong industry linkages and infrastructure in the State. Investments in the
development of world-leading
collaboration, including the Defence Victoria Research Laboratory of National ICT
Science and Technology Organisation, Australia and the Australian Synchrotron in
• Network Technologies – to transform Commonwealth Scientific and Industrial particular, aim to keep Victoria at the forefront of
the internet through intelligent Research Organisation, Daintree Australian ICT R&D. The Victorian Government
measurement and design. Networks and Rubicon Systems will also ensure that our research community is
both enabled with, and adopts, leading edge
• Network Information Processing • strong collaboration with international
e-research tools and methodologies.
– to effectively utilise massive research institutions
information networks. Through the Science Technology and
• linkages with many universities,
Innovation (STI) Infrastructure Grants
The VRL R&D program is supported by including Berkeley, Princeton and Texas
Program, the Government will continue to
the Terabit Networking Laboratory (TNL),
• 30 research staff employed build on the State’s physical and ‘intellectual’
a world-class research infrastructure
R&D infrastructure through investments in
facility that will also form the basis for • 43 PhD students supported by NICTA
collaborative industry and research projects
engagement with industry. scholarships.
that lead to the commercialisation of local
ideas and technologies.

30 Victorian Government ICT Industry Plan 2005-2010

Strategies • provided $1 million to the Victorian Building on this support, the Government will:
Partnership for Advanced Computing,
• Support the establishment of future • help to link researchers with key
a key R&D tool and member of the national
infrastructure for advanced ICT sources of scientific data in real time by
peak supercomputing facility, the Australian
research and application. investigating and establishing, where
Partnership for Advanced Computing
needed, advanced grid infrastructure,
• Maximise opportunities for
• supported the establishment of the services and applications
industry engagement with local
National Networked Teletest Facility at
research institutions. • better equip ICT businesses undertaking
Victoria University.
or thinking about undertaking R&D by
Current initiatives New initiatives offering information seminars on grants
The Government has undertaken a number of and other government assistance.
Under this Plan, the Government has
initiatives to support innovation through R&D:
already announced that it will:
• contributed $8 million towards the
• make it easier for SMEs to locate
establishment of the NICTA Victoria
important information related to sources
Research Laboratory at the University
of government and non-government
of Melbourne
R&D support by establishing an R&D
• established the Science Technology Resource Centre website.
and Innovation Initiative involving a
commitment of $620 million to develop
world-class science and technology
capabilities through investment in
‘CA believes Victoria offers a unique environment
research infrastructure, with ICT being for high-end development centres – universities that
one of five high-priority areas targeted
to drive innovation across the Victorian
produce world-class skills, a stable workforce that
economy. The STI Initiative recently is loyal to the businesses it works for and a legal
provided $1.5 million towards ICT R&D
to trial water-management systems
environment that protects the IP we are developing.
supported by advanced wireless sensor Our costs are also lower than in many other
technologies and $3.3 million to Quantum
Communications Victoria, which aims to
developed countries.’
develop new technology for secure data
Dr Eugene Dozortsev
transfer over long distances
Vice-President – Research & Development eTrust Security Solutions
Computer Associates International Inc
• provided support under VicStart for the
development and commercialisation
of technologies, products and services
to grow the number of export-oriented
technology businesses

Victorian Government ICT Industry Plan 2005-2010 31

Building the Skills to Succeed
Maximising skills across the whole ICT workforce will be a key competitive advantage for
the Victorian ICT industry.

Current situation Improving skills in business development,

project management, team building Computer Associates
Skills are the foundation of a high-performing
ICT industry. With increasing convergence
and marketing across the workforce (CA)
is particularly important to support the
of technology and business, ICT skills are CA is one of the world’s largest
industry’s high-end capacities.
becoming crucial to the performance of other enterprise management software
industries and the economy as a whole. Many graduates are responding to companies, with offices in more than
Employers are increasingly requiring ICT staff new demands with increased numbers 45 countries and employing more than
to have a mix of business and technical skills undertaking double degrees such as 15,000 people.
to respond to new market demands. Business/IT. In contrast, contractors
In 2002, it opened the largest security
– who make up almost one-third of all
The Victorian ICT industry is underpinned by software R&D lab outside the USA in
ICT jobs advertised in Victoria – are not
a world-class education sector and a strong Richmond, Melbourne. The Richmond
responding as well to this new environment.
R&D base. Despite Victoria’s strong standing facility focuses on key security issues
Research commissioned by the Victorian
compared to other States, the declining such as anti-virus and identity and
Government suggests that while contractors
number of ICT graduates from Victorian access management, and is recognised
accept responsibility for their own training,
universities over recent years – consistent by CA as a Corporate Centre of
more than half have not undertaken any
with the national trend – will affect the Excellence for security, one of only a
professional development in the past
workforce over the next three to four years. handful in the world.
12 months. Those who do undertake
In contrast to enrolments at universities,
development tend to focus on their The Richmond lab is complemented
enrolment levels for TAFE ICT courses appear
technical skills primarily at the high-end by the Mooroolbark R&D lab, which
to have steadied. With strong investment
of technical expertise. undertakes development in electronic
in ICT continuing, there is again talk of the
directories and web services security for
possibility of future ICT skills shortages. Companies will need to develop the skills of
CA on a global basis.
their staff through their own training initiatives.
In this environment, the industry will need
Business leaders will also need to develop Between them the R&D labs employ
access to skilled workers from across its
their own capabilities and entrepreneurial more than 150 specialised development
entire workforce, not just relying on the
skills to compete on an international stage. and technical support staff.
graduate pool to meet future demand.
CA points to the availability of high-
quality software development talent as
‘Our competitive advantage relies heavily on highly the primary reason for basing two R&D
centres in Victoria. The development
skilled and motivated people, including our contract of alliances with local universities,
workforce. We encourage employees to take every including Deakin, Swinburne, Monash,
Melbourne and RMIT, has therefore been
learning opportunity that comes along so they can reach a high priority. More than one-third of
their potential and we can all benefit at the same time.’ the Melbourne team were part of CA’s
student intake program.

Rhonda O’Donnell
President, Novell Asia Pacific

Victorian Government ICT Industry Plan 2005-2010 33

Contributing to the low enrolment rates in ICT to broaden its focus beyond skills shortages
IBM/Ballarat University undergraduate courses is the continuing lack and the capabilities of emerging graduates.
of appeal of ICT careers for many secondary The Government believes a greater emphasis
When IBM, the world’s largest
school students, especially young women. needs to be placed on the development of the
information technology services
Research commissioned by the Victorian whole workforce to underpin the future growth
provider, arrived in Ballarat a decade
Government indicates a high proportion of of the industry.
ago, opportunity came knocking for
young people believe they lack adequate
the University of Ballarat’s School This requires a strategic approach to improve
information on available tertiary courses and
of Information Technology and linkages between the education sector and
ICT careers. Teaching methods and the nature
Mathematical Sciences. the industry, which will lead to more sharing
of school curricula were also identified as
of research and greater skills exchange. It will
Both organisations have since barriers to students considering ICT careers.
also ensure that graduates are developing
developed a relationship that gives
work-ready skills and encourage ongoing
up to 20 undergraduate students Role of Victorian Government
professional development for existing
each year sought-after workplace The Victorian Government has a role working ICT workers.
experience, through the ‘Earn As with industry and the education sector in
You Learn’ Program. attracting, developing and retaining a highly The Government is well-placed to
skilled ICT workforce. undertake research into workforce issues
The program is for students in the
and to implement initiatives to address
Bachelor of Information Technology At the same time, the Government’s education specific workforce development issues.
(Professional Practice) course, policies need to continue to emphasise This also requires significant commitment
who work on a range of IBM projects the value of ICT skills in problem-solving, from industry and the education sector.
throughout the second, third and fourth cooperative working and communicating as
years of the course and gain well as in improving efficiency and productivity. The Victorian Government will continue to
experience in software development work with the Commonwealth Government
and maintenance, database and Recognising changes to the ICT industry over on addressing declining ICT enrolments in
call centre management and data the past four years, the Government is keen the higher education sector.
communications services.

The program is a leading example of

successful industry collaboration with
a university to deliver concrete learning
‘We have a core commitment to life-long learning
and employment outcomes to regional and actively support skill development through
Victorian students.
our partnerships with industry. These partnerships
The program helps the university to
attract potential students, gives IBM
ensure that our education programs incorporate
an opportunity to contribute to the relevant workplace skills for our undergraduates
curriculum design and have a reliable
source of ICT skills, and provides
and provide upgrade pathways for existing
employment opportunities for students professional qualifications.’
during study and after graduating.
Professor John Rosenberg
Deputy Vice Chancellor (Academic)
Deakin University

34 Victorian Government ICT Industry Plan 2005-2010

Australian centre for the moving image

Strategies • delivered the ICT Scholarships Program,

with funding of $3.4 million to encourage Satyam
• Help education and training providers to
local students to undertake further
align their courses with industry needs. Satyam Computer Services Ltd is a
research in ICT at post-graduate levels.
leading Indian global consulting and
Current initiatives New initiatives
IT services company with offices in
The Government has implemented a number 46 countries and more than 20,000 IT
Under this Plan, the Government has already professionals on staff.
of initiatives to build ICT skills in VIctoria:
announced that it will:
• developed a methodology for collection In 2004, Satyam opened a 300-
• continue to support Victoria’s best and employee Global Development Centre
and analysis of statistics about the supply
brightest students through a $1.1 million in Melbourne, its largest outside India.
and demand of ICT skills in Victoria,
extension of the highly successful ICT The next year, it boosted its investment
brought together in a single publication
Scholarships Program. The program in the State by announcing an alliance
called the ICT Skills Snapshot
supports ICT postgraduate students with Victoria University that will enable up
• delivered the New Realities awareness- undertaking research programs at to 10 students to undertake a software
raising campaign to more than 40,000 Victorian universities development internship and up to 20
Year 9 and 10 students in more than 370 graduates to undergo training and
• help more students become job-ready
Victorian secondary schools employment with Satyam each year.
by undertaking an industry-based project
• developed the PositionMentor careers during their university course through the Victoria University considers the alliance an
reference website – a resource to assist ICT Industry Skills Scholarships Pilot invaluable boon for its students, but also
people to understand the different types Program with funding of up to $370,000. highlights Satyam’s additional commitment
of ICT careers and make informed subject to ICT curriculum review and teaching as
Building on this support, the Government will:
choices. The website encouraged young well as the possibilities for joint research.
people to explore a large range of ICT jobs • vigorously pursue a coordinated, national
and corresponding tertiary ICT courses approach to the promotion of ICT
careers to young people with industry,
• worked with RMIT University,
the higher education sector and other
Victoria University, La Trobe University
Australian governments
and Swinburne University of Technology
to establish Chipskills, the Master of • provide a comprehensive ICT career
Engineering (Microelectronic Engineering) reference tool on careers targeted at
degree with more than 350 enrolments young people through the Government’s
to date website for young people,
• commissioned research (Attitudes to ICT
careers among 17-19 year old Victorians, • work with the Victorian education sector to
2004) to demonstrate the importance of ensure secondary school curricula remain
education providers in providing careers in line with industry needs
advice and information about the ICT
• analyse ICT workforce needs to better
industry and to help the industry and
understand the existing and future needs
education sector to better understand the
of the industry with a particular focus on
views of the young people they want to
attraction, professional development
encourage into ICT courses / careers
and retention.

Victorian Government ICT Industry Plan 2005-2010 35

Delivering Infrastructure Capability
Victorian ICT companies require world-class infrastructure to compete on a global stage.

Current situation The reliance on increasing levels of broadband sector. In this environment, investors need
connectivity will continue as broadband use accurate and relevant information about
Alongside a strong skills base and access
becomes more prevalent across the economy. prospective investments, and ICT companies
to critical equipment for R&D, companies
Historically, broadband developments, need to be able to deliver it.
need fast, reliable and competitively priced
such as the introduction of cable and DSL
communications infrastructure and effective There are a number of avenues for ICT
services, have not occurred in Australia
access to development capital. companies to raise capital. The listed
as quickly as they have in the leading
markets are one, which in Australia are highly
broadband countries. It is crucial that Victoria’s
Communications sophisticated and of world-class standards.
broadband infrastructure does not fall behind
Access to advanced communications Companies, particularly at start-up or at an
its competitors and trading partners in the
infrastructure is a vital ongoing requirement for early stage of development, can also seek
development of the next generation broadband
business. In the past four years, broadband investment from ‘angel’ or ‘seed’ investors or
services, including fibre to the premises and
connections to business have increased from from the venture capital market which tends
fixed and mobile wireless broadband.
between 1 and 2 per cent to more than to look at later stage investments. The venture
60 per cent, easily surpassing levels of dial- capital market in Australia remains relatively
up access. Businesses and consumers are young but with a number of highly successful
Businesses need capital investment to grow. firms established.
also placing increasing demands on current
A small number of businesses are able to
services and ICT providers. ICT companies need to be able to access
provide their own capital but most need to
High-speed connectivity plays a role across rely on external sources of investment to capital effectively from all these sources.
the full business life cycle. It underpins the fund development and/or growth strategies. Government has also been active in helping
ability of companies to compete effectively Having access to capital investment options companies gain access to early stage
and be innovative. It is a fundamental part for companies throughout their lifecycle is capital. Yet there is evidence to suggest the
of advanced and collaborative research, an important part of the environment for an ICT industry performs poorly compared to
development and production in scientific and innovative and outward-looking ICT industry. other industry sectors in securing capital
commercial fields. It enables market growth investment from listed markets.
The enthusiasm for investing in developmental
through new ICT products and services and is Government research indicates there are
ICT projects in the late 1990s and early 2000s
central to business functions such as customer barriers to accessing such investment as a
was tempered by the dotcom crash and
relationship and supply chain management. result of failures in the interaction between
market downturn. As a result, in the past few
For businesses with dispersed operations, listed markets and the ICT industry. Improved
years, the ICT industry has experienced a
high-speed network connections are vital to understanding of this relationship may result
more cautious investment climate. Investors
maintain effective communication, information in better access by ICT companies to this
turned to more reliable and established ways
sharing and collaboration on projects. major source of capital.
to assess risk and opportunity in the ICT

Victorian Government ICT Industry Plan 2005-2010 37

Role of Victorian Government bandwidth and expand Victoria’s
Extel Communications broadband infrastructure to improve
The Commonwealth Government sets
competition. TPAMS contracts to date
Extel Communications is a the national regulatory framework
have lowered telecommunications costs
successful developer of innovative, and is responsible for ensuring
to the Government by approximately
cost-effective ICT products, telecommunications services are accessible
$200 million over five years and
which improve the accessibility of on a reasonably equal basis and that they
secured almost $200 million in new
telecommunications services. meet community and business needs.
telecommunications infrastructure
Since establishing in 1991, State Governments have a more limited but investment for Victoria
the Melbourne-based company has crucial role in influencing the development
• established the $15 million
gained a significant installed base in of broadband infrastructure and services.
Broadband Innovation Fund to support
Australia, North and South America and The Victorian Government is committed to
the innovative use of broadband in
Asia, including China, and its goal is to using the levers at its disposal to facilitate
delivering government services
become the global leader in delivering growth of broadband services and improve
innovative network access solutions. the ICT industry’s access to these services. • facilitated broader access to the
Government-owned Regional Fast Rail
This goal has moved a step closer In 2005, the Victorian Government released
fibre optic network
to realisation through a cooperative its Broadband Framework: Pathway to the
arrangement with Telstra’s suppliers Future describing how it will strategically • supported five regional projects to test
for Extel to provide its innovative support the development of broadband different broadband technologies and
expandsl technology as part of a infrastructure and services in the State. services in regional Victoria through the
major trial by Telstra. expandsl extends $5 million Customer Access Networks
The Government can also help the industry by
the capacity and range of existing Demonstration Program
creating a supportive investment environment,
telephone networks, allowing previously
promoting flows of relevant information and • supported the Municipal Association of
isolated consumers to be economically
addressing other barriers to obtaining the Victoria and the Growth Councils Wired
connected to the high-speed
investment capital needed for growth. Development Consortium’s development
ADSL network.
of a commercial planning model for
Telstra began to trial Extel’s technology Strategy the provision of advanced broadband
in several regional Victorian centres in • Ensure the Victorian ICT industry has services into new housing estates
early 2005. The success of the trials is access to world-class infrastructure • published a series of Spend/Demand
such that Telstra is planning to outfit and services. – Telecommunications in Regional
further telephone exchanges with
and Rural Victoria reports that
expandsl, as part of a roll-out program Current initiatives provide much-needed information
expected to continue for a number
The Government has implemented a number on telecommunications demand and
of years.
of activities that have contributed to the expenditure throughout Victoria
development of high-quality infrastructure
• assisted in development of the technology
in the State:
finance sector through VicStart.
• implemented the Telecommunications
Purchasing and Management Strategy
(TPAMS) to increase government

38 Victorian Government ICT Industry Plan 2005-2010

Australian centre for the moving image

New initiatives
Tantalus Interactive Polaris Communications
Supporting this ICT industry plan, the
Government has already announced initiatives Tantalus was the first ever Australian Polaris Communications is a leading
under its Broadband Framework: Pathway to company to develop an online, console developer and manufacturer of
the Future. This outlines the Government’s video game. Broadband is critical to the telecommunications products for the
agenda for using the most up-to-date continued growth of online gaming, desktop, specialising in the supply
broadband technologies and fostering and better broadband translates and servicing of telephone headsets
development of broadband services and inevitably to a better entertainment and handsets.
infrastructure, particularly in regional areas. experience for video gamers. We look
The company is headquartered
at online gaming as a key growth area
Building on this support the Government will: in Melbourne and employs 40
for our business, and with the continued
people nationally. One of Polaris
• help to establish in Victoria world- support of the Victorian Government we
Communications’ biggest markets
class motion capture facilities for the hope to build a worldwide reputation for
is the Australian contact centre industry,
electronic games, advertising, design excellence in this space.
which has more than 220,000 seats
and other digital industries as well as for
Tom Crago and is one of the largest in the Asia-
a wide variety of educational and skill
CEO, Tantalus Interactive Pacific region.
development, subject to a comprehensive
business case Polaris Communications developed
‘Soundshield’, a world-first device to
• drive more productive interactions
protect contact-centre workers from
between the ICT industry and the
the potential health-hazard of ‘acoustic
financial and capital markets through
shock’, a phenomenon caused by
deeper understanding of the pattern
unexpected high-pitched tones.
and influence of investment in the sector.
In May 2005, Polaris signed a
multi-million dollar contract with
the Australian Tax Office to provide up
4,000 Soundshields and 8,500 new
Soundpro headsets over the next
few years.

Polaris Communications continues

to invest in R&D, and works in close
partnership with the National
Acoustics Laboratory and the Cochlear
Research Centre to support the ongoing
development of a full suite of acoustically
safe products.

Victorian Government ICT Industry Plan 2005-2010 39


The Victorian Government is grateful to the following individuals and organisations for their
contributions to the review of the ICT Industry Plan.

Abstract Plane EDS Australia National ICT Australia

Accenture Etechgroup Pty Ltd NEC Australia
Acumentum Pty Ltd Extel Communications Pty Ltd NeoProducts Pty Ltd
Agilent Technologies Australia Pty Ltd Hansen Technologies Novell
Analog Devices Hawker de Havilland nSynergy Pty Ltd
ANCA Pty Ltd Hewlett-Packard Australia Pty Ltd Oakton Ltd
Association of Professional Engineers, Hitwise Pty Ltd Ocean Software Pty Ltd
Scientists and Managers, Australia
IBM Australia Ltd Pacific Internet (Australia) Pty Ltd
Australian Computer Society
ICON Recruitment Polaris Communications Pty Ltd
Australian Electrical and Electronic
Manufacturers’ Association Information City Australia Pty Ltd QSR Ltd
Australian Information Industry Association Infosys Technologies Australia Pty Ltd Radiant Systems Asia Pacific Pty Ltd
Australian Software Metrics Association Invizage Pty Ltd RFID Association of Australia
Australian Stock Exchange Ltd IR Gurus Interactive Pty Ltd RMIT University
Ballarat University IT Skills Hub Robert Bosch (Australia) Pty Ltd
Bendigo Bank Limited Information Technology Contract and Sage Technology
Recruitment Association
Box Hill TAFE
Satyam Computer Services Ltd
Kangan Batman TAFE
Calyptech Pty Ltd
Senko Advanced Components
cBallarat Kaz Group Ltd (Australia) Pty Ltd

CEOS Pty Ltd Kingfisher International Pty Ltd Smart Internet Technology CRC
Coles-Myer Ltd La Trobe University Starfish Ventures Pty Ltd
Computer Associates International Inc Linfox
Computershare Ltd Mayne Group
Tantalus Interactive Pty Ltd
CSIRO Australia Microsoft Australia
Telstra Ltd
Cutler & Company Monash Commercial Pty Ltd
Toyota Australia
Daintree Networks Monash University
University of Ballarat
Deakin University Morpheum Pty Ltd
University of Melbourne
DialTime Moyston Fisheries Ltd
Victoria University of Technology
Dr Phil Gurney Murray Goulburn Co-operative Co. Ltd
Victorian Learning and Employment
e-CentricInnovations Pty Ltd N.Tea Skills Commission

40 Victorian Government ICT Industry Plan 2005-2010

DOI 3237/07