GovernmentVAR, a web site devoted to technology integrators and value-added providers, recently published some spending and trends information that I found interesting. Its State of the States article also quotes a number of state government CIOs in an effort to provide a heads up on the opportunities available to the private sector.
The spending forecast looks good for telecommunications and public safety, two areas where NASTD members are active:
Research firm Input
predicts that IT spending in state and local government will reach more
than $60 billion in 2008 and about $73 billion in 2011. Of that, $50
billion will be contracted to the private sector in 2008, $62 billion
in 2011.
Two areas that
will carry significant opportunity for the channel are public safety,
which Input predicts will grow 12 percent to $3.4 billion in the next
five years, and health care, which is expected to grow 10 percent in
that same time frame, from $7.6 billion to $12.2 billion.
The most
significant sector growth will happen in telecommunications (from 19
percent of the budget in 2006 to 23 percent in 2011) and services (from
23 percent in 2006 to 30 percent in 2011). Software products will stay
at about 9 percent of the total IT budget, while computer hardware is
expected to drop from 16 percent to 14 percent.
The trends, as broken down by GovernmentVAR:
- "More with Less" - Mentioning the Michigan email and Texas data center consolidation projects specifically, the article suggests centralization will continue apace.
- "Moving beyond Homegrown" - moving beyond legacy homegrown solutions created and nurtured by IT professionals who are beginning to retire.
- "Mass Appeal" - the continued development of the Web interface with the citizenry, and the ability to capture cost savings from those initiatives.
- "Juggling Expectations" - meeting the expectations of the federal government
- Consolidating opportunities, or "strategic sourcing"
Thanks to NASCIO's Enterprise Architecture Newsbriefs for providing the link.
While you're at GovernmentVAR, check out the audio from an interview with NASCIO's executive director Doug Robinson on the challenges for state government IT.
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