Western European Government IT Spending to Reach $50 Billion in 2009

IDC: Western European government IT spending will reach $50 billion by 2009, increasing 5.3% between 2005 and 2009.

IT suppliers that want to win business in this area must target local authorities, offer solutions that stress the ability to join up processes across various departments, and support the deployment of shared services. Government CIOs must leverage on internal staff and external resources to support this long-term transformations.

The study shows that government modernization processes have matured significantly over the past few years and will increasingly go beyond the publication of information on the Web and deployment of interactive services. Increased focus will be given to reengineering processes to join up services across authorities, sharing common functions, especially in the back office, and making the management of the IT infrastructure more coherent.

IT spending by local authorities in Western Europe will grow from $20.1 billion in 2005 to $25.5 billion in 2009, with a CAGR of 6.2%. Central government spending will grow at 4.5% over the same period. The study also reveals that U.K. central government IT spending will grow from $4.1 billion to $4.9 billion between 2005 and 2009.

Western Europe, Government Sector IT Spending Forecast Update, 2005–2009 Publ 2006018