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ICT government spending remains cautious

ICT spending within the Australian government sector will remain cautious in the next 12 months and is set to hit $7.053 billion in 2015, an increase of 2.7 per cent from this year, which is expected to hit $6.481 billion, according to analyst firm IDC.

The IDC report titled Australian Government ICT Market 2011-2015 details ICT spending across state, local and federal government verticals.

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According to the report, spending will be cautious due to the uncertainty of its ability to deliver a budget surplus of $1 billion in 2012/13 from a budget deficit of A$44 billion in the previous period.

However, IDC Australian vertical market analyst, David So, said the government is committed to spending on new projects, with 30 per cent being allocated to drive expansionary spending as opposed to maintenance spending from upgrades and renewals of existing products and services.

Based on the report, the government aims to generate significant cost efficiencies by deploying cloud-based infrastructure and a whole-of-government approach in its ICT procurement policy.

"The 35 vendors that were selected in the multi use list for the government's Data Centre-as-a-Service (DCaaS) are well positioned to assist the government in achieving the A$1 billion cost savings from the procurement of cloud-based services," So said.

Some of the hot spots the Australian government is beginning to gain an appetite for new generation technologies includes cloud, mobility, social and big data.

"These ICT growth pillars will not only significantly cut the costs of the government organisations but also will increase productivity and efficiency of the public servants. These productivity improvements should align with its strategic priorities of delivering better service, engage openly and improve government operations," he said.


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