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INDUSTRY NEWS


19 May 2008

eProcurement IT spending to grow


Central government agencies and local authorities in Western Europe will increase their IT spending on eprocurement systems by seven per cent between 2007 and 2011, according to new research.

Independent research and advisory firm Government Insights, reported that eprocurement is yet to reach its full potential in Europe, but that major investments over the next two to three years will see local and regional authorities integrating their systems.

"Procurement applications vendors and system integrators must target regional governments and groups of local authorities that want to implement eprocurement solutions," said Slivia Piai, senior research analyst at the firm.

"Efficiency savings and the ability to integrate into eprocurement systems that leverage on existing national hubs, thus combining central bargaining power and flexible access to local providers, should be the focus of the value proposition."

Government Insights also predicted that public sector bodies will increasingly look to have their applications delivered via software-as-a-service (SaaS) platforms, due to pressure to cut costs and streamline services. It urged vendors to offer integrated solutions that can be easily integrated with information systems.

According to business website Sify.com, organisations are increasingly turning to SaaS email solutions, in order to manage the spiralling costs associated with tackling spam and maintaining an internal messaging infrastructure.

© 2006 Adfero Ltd.

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