Suburbs have what IT takes

Melbourne Express, 29th May 2001

Innovation Lab @ Oakton.

While the CBD has the largest number of IT businesses, it is the suburbs where business is booming.

South Melbourne is Melbourne's Seattle. While its live music scene is not breaking new ground as grunge did, Melbourne's IT business community is growing there at a prolific rate.

While the CBD has the largest number of IT businesses, the suburbs is where business is booming. South Melbourne and Hawthorn are the most popular addresses, with South Yarra, Richmond and Glen Iris not far behind.

These trends are clear from the 500 businesses registered with VicIT, and online IT business directory that forms part of the Bracks Government's $10 million e-commerce strategy.

Of the 500 VicIT registrations, 40 are businesses in South Melbourne.

"South Melbourne is our version of Silicon Valley. It attracts a lot of creative businesses," says Barry Hollingsworth, director of multimedia at IRM Training and Multimedia.

"The fact that there's already a cluster here makes it attractive. There is a sense of community because you meet people face-to-face instead of communicating by email or phone.

"There have been satellite centres setting up in places like Burwood but my feeling is that these companies are moving back into the city. Most clients prefer to have you close by and near the city. It also makes it easier to sub work out, which translates into savings for the company."

Hollingsworth says the other advantages of the area include its proximity to the CBD, cheaper rent and more parking.

"The industry is still vibrant: even though some people are being laid off, companies are continuing to spend money on IT," he says.

Hawthorn's popularity suggests Melbourne might be following Sydney's lead, with businesses located near train stations, according to Lloyd Borrett, general manager marketing for Hawthorn company Oakton Computing.

"Some time ago, a lot of companies were heading out towards areas like Glen Waverly but then you've got to provide parking for employees."

"Hawthorn's cheaper than the CBD and St Kilda Road, and there is a lot of office space, though it's not immediately obvious."