AIIA: Victorian tech industry needs clear exit strategy

Victoria’s Stage 4 lockdown has had a dramatic negative impact on the local tech sector, according to a survey of the Australian Information Industry Association’s (AIIA) Victoria-based members.

The findings were released following a meeting with the Victorian Minister for Employment, Innovation, Medical Research and the Digital Economy, The Hon. Jaala Pulford to discuss a road to recovery for the tech sector.

The survey revealed that for 70% of AIIA members, the Victorian Government has not clearly articulated a roadmap out of the current restrictions that gives their businesses confidence.

The survey also shows that 65% of companies, many of whom are SMEs and professional services companies, are worse off under current restrictions compared to a few months ago, with revenue reduction (69%) the largest area of impact, followed by business continuity (41%) and business viability (25%).

In addition, 38% of participants stated that the current restrictions will result in workforce reductions, while another 28% are unsure. State border closures were also cited as impacting business.

“We knew from talking to members daily and speaking to the broader business community that there was frustration with the lack of a clear roadmap, consultation and engagement and exit strategy for Victorian business. What this AIIA data shows is that this is in fact the case and it also suggests that jobs have been lost and the adverse impact on businesses will continue long after restrictions are relaxed,” said Ron Gauci, AIIA CEO.

Gauci commended Minister Pulford and her commitment to working with the AIIA and the sector to deliver targeted policies that support the local economy and jobs.

“It is no surprise that our members see that accelerating digital investment to aid recovery in Victoria is vital with 85 per cent agreeing, but the main area of focus suggested by members was Victorian Government invest in much needed digitisation projects (81%),” Gauci said.

Image credit: ©stock.adobe.com/au/Jacob Lund