文章基本信息

标题：Snapshot 2001: government IT markets still a safe bet
作者：Bishop, Chris
期刊名称：Summit
印刷版ISSN：1481-4935
出版年度：2002
卷号：Spring 2002
出版社：Summit Group, Centre on Governance, University of Ottawa

Snapshot 2001: government IT markets still a safe bet

Bishop, Chris

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Government IT markets

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Government IT markets still a safe bet

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The federal government information technology (IT) market remains huge, despite signs of slowing growth rates.

Data from the fiscal year ending in March 2001 shows an 18 percent fall in spending on professional services relating to IT, but federal government IT spending increased three percent to just under $3 billion. The increase in spending is accredited to two key areas of support: the Government On-Line (GOL) program and Program Integrity.

Spending increased over 20 percent in five major departments including Health Canada, Natural Resources and the Royal Canadian Mounted Police. At Human Resources Development Canada and Correctional Service of Canada spending fell significantly from the previous year. Overall spending on professional services fell to $366 million - below the 1997-1998 levels - as the impact of Year 2000 amelioration programs ended.

Expenditures on hardware and software have also slowed following the previous year's increase, which was attributable to Year 2000 preparations. A continued reduction in per unit rates, partially as a result of the Telecommunications Service Supply Arrangement management approach, has led to reduced spending in the communications services segment - a segment dramatically affected on a government-wide basis by the negotiations of the Telecommunications Services Supply Arrangement, which enables departments to contract separately for telecom services. There are supply arrangements with eight companies.

As for suppliers, the main players, assessed on the value of contracts awarded, remained the same with IBM, Compaq and Bell in the top three spots. Dell has moved up strongly with a reported 76 percent growth over the previous year.

In the current year, ending in March 2002, it is expected that spending will once again have seen little growth. Although funding has been provided to the departments for GOL initiatives, the money has been spent at a slower rate than anticipated. But encouraging changes to ease procurement will speed this up over the coming months. The recent federal budget has capped central funding on GOL at $150 million a year, much of which will go to support the Secure Channel - a part of the federal government's technology infrastructure intended to provide citizens with reliable and secure access to federal services using the Internet. Departments will need to supplement these funds with their own program dollars.

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Top 10 informatics products and services buyers (excludes staff costs)

Top 10 informatics vendors

Comparison of market size by category of products and services

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Provincial spending on information technology

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Security issues, a major concern for some time, have been gaining prominence. Significant funding has been assigned for security in general, but it is not yet clear how much will be available, or needed, for IT security. Some major steps have been taken such as the increase in funding and staffing of the Office of Critical Infrastructure Protection and Emergency Preparedness. Just how the GOL challenges and the renewed importance of security will affect spending remains to be seen.

At the provincial level of government, IT spending continues to rise. In Ontario, for example, spending increased by 12 percent over the previous year, with much of the focus on e-government. New portals have been rolled out in many provinces and the new Electronic Service Delivery for Individuals is underway in Ontario. The level of spending is expected to show an increase in the fiscal year ending March 31, 2002, but at a slightly slower rate than before.

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Chris Bishop is a principal at Public Sector Research Inc. (previously known as Ross Hutchison and Associates Inc.). Public Sector Research has produced annual market IT studies related to both the federal and the Ontario governments for many years and is continuing to provide these and other government studies.