Public spend set to peak

Analyst report predicts double-figure percentage growth in 2004

E-government targets will peak in 2004, but suppliers have been warned to vary their approaches to public sector projects.

A report by analyst IDC has predicted that UK government IT-related spending will peak at double-figure percentage growth in 2004 before settling into a pattern of steady increase.

But Massimiliano Claps, analyst at IDC, cited the diverse structures of local and national government as a challenge for suppliers, which "need to differentiate their approaches". There is no definitive model, he said.

He added that internal working practices must change. "The challenge of e-government is changing the organisation's internal culture," Claps said.

However, this would not mean replacing large numbers of people with technology, he claimed.

Dave Meaden, public sector managing director of Var Northgate, agreed.

"If the public sector just implements IT it will not work, because it has to introduce better working practices as well," he said.