Public sector IT cuts might not be as deep as feared


Public sector IT cuts might not be as deep as feared

Simon Quicke

The impact of public sector cuts on IT spend from that market are not going to be severe as some anticipated with technology investment protected with the axe falling in other areas.

According to predictions from public sector analysts Kable the forecast to 2015 shows a marginal decline but nothing as bad as the spend falling off a cliff.

In the next couple of years there will be a slight decline, from the current level of £17.75bn, but by 2015-16 IT spending will rise by 1.5% to £18.27bn.

The analyst house pointed out that the efforts to find efficiencies was driving investments in outsourcing and managed services.

Although PCs and printer refresh cycles were being pushed back there was hardware investment going on around mobility and there would be chances for resellers to make some gains selling technology to aid consolidation as Whitehall looked to cut duplication across departments.

The forecasts are that local government will lead the recovery, having adapted more quickly than central government to the changed landscape, and there will also be a demand from the NHS for ICT as it invests in making itself more streamline.

Stephen Roberts, research director at Kable, said that the emphasis was on cuts but it was possible for suppliers to take advantage of the way the public sector was trying to cut and invest at the same time.

"Even with a clear roadmap, many public bodies lack the capacity for multiple change programmes," he said.

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