Feeds

Government ICT spending heads for plateau

Evening out

Choosing a cloud hosting partner with confidence

Public sector spending on ICT is set to stabilise over the next five years.

New research from Kable shows that while government is placing the brakes on the spending surge of recent years, the drives for efficiency and radical changes in service provision will open up new areas of growth.

The UK public sector ICT overview and forecast to 2014-15 projects overall spending at £1.66bn in 2009-10, with the prospect of a series of marginal increases to hit £1.72bn in 2014-15. The main internal shifts will involve a contraction of how much central government spends in the field, offset by continued growth for healthcare, while changes in other areas will be marginal.

Collaborative procurement, falling prices, small cuts in outsourcing and a move to extend the life cycles of equipment will reduce spending on hardware and ICT services. But spending in software and telecommunications will increase as organisations try to improve their processes through greater collaboration, standardisation and use of mobile technology.

The report predicts three phases of change for individual organisations, kicked off by a widely anticipated squeeze on public spending. The first will last less than a year and involve public bodies looking for short term cuts.

The second, which will be longer, will focus on looking for sustainable efficiency improvements, and may mean buying ICT which can produce savings by reducing costs and rationalising infrastructure. The third will revolve around the need for radical reforms in delivering services that reduce costs without undermining their quality.

The report also shows that central government has reasserted itself as the largest sector in the market, accounting for £4.04bn of the business in 2009-10 against £3.83bn for local government. However, spending by the former is set to fall sharply to £3.46bn in 2014-15, due largely to a greater use of shared services, while the figure for local government will rise modestly to £4.03bn, with mobile working and ICT outsourcing providing the main areas of growth.

Report author Peter Reed said: "Predictions of apocalyptic spending cuts have made the market jittery, and the next few years are certainly not going to be business as usual. Crises create a sense of urgency, and in the words of Rahm Emanuel (chief of staff to President Obama), 'You never want a serious crisis to go to waste'.

"Whatever the short term pressures on spending, though, public sector bodies only exist to deliver public services. Suppliers which calmly get on with the job of helping them to use ICT to do that are going to see their position strengthened rather than weakened."

This article was originally published at Kable.

Kable's GC weekly is a free email newsletter covering the latest news and analysis of public sector technology. To register click here.

Beginner's guide to SSL certificates

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
YARR! Pirates walk the plank: DMCA magnets sink in Google results
Spaffing copyrighted stuff over the web? No search ranking for you
In the next four weeks, 100 people will decide the future of the web
While America tucks into Thanksgiving turkey, the world will be taking over the net
Microsoft EU warns: If you have ties to the US, Feds can get your data
European corps can't afford to get complacent while American Big Biz battles Uncle Sam
Don't bother telling people if you lose their data, say Euro bods
You read that right – with the proviso that it's encrypted
prev story

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.