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IT must target specific needs to tap into government spending, says IDC

Warwick Ashford

European government IT spending is set to increase in the next three years, but suppliers will have to meet specific needs if they are to cash in, says IDC.

Government spending on hardware, software and IT services in Western Europe is expected to increase from $56.6bn in 2008 to $68.5bn in 2013, according to IDC.

Despite concern over increasing social costs due to the recession, government spending on IT in the short term will remain relatively stable, an IDC report said.

Many governments are looking to technology to compensate for fewer staff and although growth may be slow, IT spending is unlikely to slow down, the report said.

But IT suppliers who want to have a share in that market must take pains to ensure their offerings meet government needs, said Jan Duffy, research director at IDC.

These include the need for modern infrastructures and application capabilities, streamlined processes, and cost containment or reduction, she said.

As governments move to an online service delivery model, investment across a wide variety of departments, functions and systems will be required, the report said.

Of the top economies in Western Europe, the UK is expected to be the highest spender on IT in 2010.


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