IfG.CC -
Institute for eGovernment

A new Yankee Group report, "The Yankee Group Evaluates Federal IT Spending Opportunities," says the federal government's spending on technology is a hot spot when compared to the growth of private sector IT spending. However, while federal budgets are expanding to support cross-agency IT initiatives, the expansion of technology at the federal level is more hype than reality. "Federal government IT spending is growing, but it remains to be seen if it will sustain IT's recovery," says Carrie Lewis, Yankee Group Technology Management Strategies senior analyst. "One certainty is that the opportunities for capturing federal IT spending are not equal. Vendors seeking to compete for federal IT dollars need to carefully evaluate the opportunities."

Lewis advises companies to "be skeptical, ask questions, and test all assumptions. Find out if this opportunity represents long-term sustainable IT growth or short-lived growth."

The Yankee Group's analysis of federal government technology spending indicates that although opportunities such as security and e-government have captured the attention of vendors seeking high investment returns, these opportunities will cycle through as priorities shift.

However, the Yankee Group recommends that not every IT opportunity at the federal level is fleeting. The core business opportunities--ITO (network and seat management), BPO (accounting, financial, and HR), and AO (ERP, SCM, and CRM)--will continue for years to come. Vendors seeking to capture federal IT dollars should carefully evaluate the opportunities. Balancing the volatile, short-term opportunities with more robust, long-term prospects is the key to sustainable success and offers a more stable path to capturing federal IT dollars.

The Yankee Group:

The Yankee Group is the global leader in communications and networking research and consulting. The company helps businesses understand the opportunities, risks, and competitive pressures of developing, deploying, and consuming products and services that drive communication or information exchange. Now in its fourth decade, the Yankee Group is based in Boston with offices throughout North America, Europe, Latin America, and the Pacific Rim.

Quelle: dBusinessNews Boston