Central government IT spending will grow 6.3 per cent in 2004, while local government IT spending will increase by 6.8 per cent, thus bringing total government IT spending in Western Europe to $40bn, according to a new report by researh firm IDC. Market inhibitors are making it necessary for government agencies to stage their IT investments, and each country and sub-vertical has its own priorities. However, for the 2003–2008 period, total IT spending in hardware, software, and IT services will rise from $22.4bn to $29.6bn in central governments and from $15.6bn to $21.1bn in local government.
"Western European governments are continuing their transition toward citizen-oriented and leaner organizations, supported by integrated egovernment systems," said Massimiliano Claps, senior research analyst with IDC's European Vertical Markets research group.
IDC believes that the growth of IT spending resulting from this transformation will be driven by a number of solution areas:
- In the short-to-medium term, egovernment will continue to be a top priority for electronic service delivery technologies (e.g. citizen portals and electronic ID) and eprocurement platforms.
- Information management solutions, such as database, collaborative tools, and document management systems, will be the backbone of information sharing.
- Industry-specific solutions (e.g. justice case management) and horizontal administrative systems (e.g. ERP) will ensure that front-end automation is complemented by back-office efficiency.
- Security, mobility, and integration solutions will enhance long-term capability to manage processes in a flexible, secure, and coordinated way.
