A further £240m could become available to local authorities as the Office of the Deputy Prime Minister (ODPM) looks to implement the next phase of its Implementing E-Government (IEG) strategy.
Every local authority in England - there are about 480 - can claim an additional £350,000 this year and £150,000 next year as part of the fourth phase of IEG (IEG4).
The public sector has been a huge source of revenue for the IT industry, and resellers have been cashing in on local authority e-government initiatives.
Rod Matthews, director of e-government programmes at Knowsley Metropolitan Borough council, said IEG4 will be more challenging than previous deployments.
"IEG1, 2 and 3 were based around the achievement of 100 per cent electronic service delivery, but now it will be how you are doing in relation to primary objectives," he said.
"The ODPM has not detailed what the latest funds will be spent on, but it has talked about them being earmarked for specific projects such as joined-up government."
Paul Rennuci, managing director of public-sector VAR Damovo, said there is a lot of activity in the public sector. "Joined-up government is about linking databases and applications, but we are seeing a lot of demand for networking equipment to provide access to these," he said.
Rennuci added that the channel has an important role in supporting local authorities. "IT is not something they want to commit too much of their resources to, because they are focused on services to citizens," he said.
"We are seeing a lot of demand for managed services that are (predictable) regular investments."
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