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INDUSTRY NEWS


20 May 2008

Government ESD spending 'to rise'


Central and local government agencies in western Europe will increase their IT spending for the Electronic Service Delivery (ESD) market by 5.4 per cent per annum between 2006 and 2011, it has been claimed.

According to independent research company Government Insights, public sector software investments will grow at a compound annual growth rate of eight per cent during the same period, while IT services investment will increase by 5.9 per cent.

This is while governments look to deploy interactive services for individuals and businesses, using portals, call centres, kiosks and electronic ID systems, Government Insights predicts.

Jan Duffy, research manager at the analyst, explained that governments will need to work closely with ICT providers to ensure that ESD products (hardware, software, services) are delivered in an interoperable, secure environment.

"New and innovative funding and delivery models may be needed to develop the infrastructure needed to satisfy the need to provide access to all citizens. This is not an insignificant or simple undertaking," she added.

According to IDC, companies and government agencies will spend some $746 billion (£380 billion) on external IT services in 2008, 6.8 per cent more than in 2007. The analyst predicts that this figure will rise to $965 billion (£491 billion) by 2012.<br/>

© 2006 Adfero Ltd.

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