Governments should adopt new technologies and IT initiatives, such as cloud computing and crowd-sourcing, to cut costs, says Gartner.
The research firm said traditional measures to slash the budget will not provide the savings needed; government organisations must utilise new technology, such as cloud-based services and community source projects to cut costs effectively. By piloting public cloud services for non-mission-critical applications, pursuing crowd-sourcing and considering open source and the cloud as alternatives to current vendors, governments can reap cost-cutting benefits, said Gartner's report.
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"Overall, a number of signals indicate that the financial climate is forcing the UK and European governments in general to follow in the footsteps of commercial organisations," said Claudio Da Rold, vice-president and analyst at Gartner.
"We expect that governments in Europe are likely to follow the UK's spending cuts and gradually move toward increasingly considering consolidation, outsourcing, global delivery models and industrialised services as potentially viable options to reduce spending," he added.
Gartner also suggested government organisations cancel high-risk programmes and reassess projects with a risk of being delayed by interoperability framework compliance.
Government organisations are starting to embrace new technologies. Coventry County Council recently held the first IBM city "jam"; a web-based crowd-sourcing event held over three days to inform the council's reformed public services policy.