Public sector IT cuts coming regardless of election result

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Public sector IT cuts coming regardless of election result

Simon Quicke

The threat of cuts in public spending IT are looming large on the horizon regardless of which party wins the election this summer.

Over the past decade the importance of the public sector as a customer of IT goods and services has grown considerably with it reaching 28% of the UK's IT spending.

But with government debts spiraling in the recession all major political parties are now talking about the need to make severe cuts.

According to TechMarketView, which has published a report into public sector IT spending over the next four years, concludes that cuts are expected in the police, central government and defence.

There is also a loss of appetite for the large computing projects of old with those being seen as expensive.

But most of the big decisions will be on hold this year as the election takes place and the fallout of that event works its way through to spending decisions.

Health is forecast to continue growing as a market for IT along with education and local government but there will be some scaling back and there will be more emphasis on outsourcing.

"With a change of government expected later this year, IT suppliers to the public sector need to be prepared to adapt to new market conditions," said Tola Sargeant, research director at TechMarketView.

Some of the ways public sector buyers will be encouraged to save costs is through outsourcing and sharing services.

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