e-Government spending set to boom in 2003

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By: Wise Marketer Staff |

Posted on December 11, 2002

e-Government spending set to boom in 2003

Despite cost cutting and budget constraints across the economy, e-Government will drive IT services spending in 2003, with Western European e-government services growing by 22% to US$2.8 billion, according to industry analysts IDC.

"In a soft IT market, e-Government services are growing fast. From broadband to tax returns, this is an opportunity for service providers to transform Europe's public services," said IDC analyst James Weir. "IT service providers cannot afford to miss out."

According to IDC, although the growth of e-government spending will see double-digit growth rates, the opportunities for IT service providers is not uniform across Europe. Different countries are displaying different levels of sophistication and readiness for e-government applications, with the UK and Germany having fallen behind Finland, France, Spain and Italy in terms of sophistication. They are also falling behind the Nordic countries in terms of readiness for e-government.

European governments across the board are aiming to deploy electronic delivery of services, create e-business platforms for public procurement, and leverage intra-agency and inter-agency knowledge. To achieve this goal, they need to invest in both hardware and software, supported by service professionals to design, implement, manage, and update those solutions.

IDC's study, IT Services for eGovernment in Western Europe 2001–2006, forecasts the growth in e-government related IT services spending in Western Europe, with a specific focus on the five largest members of the European Union (France, Germany, Italy, Spain, and the UK). The study also analyses the main trends within the government sector, and identifies e-government as the driving force for IT services spending.

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