Government IT spending to soar

IDC predicts government IT market will grow at an average of 5.3 per cent between 2004 and 2009

Western European governments are set to invest up to $49bn in IT by 2009 according to research by IDC.

A study entitled Western Europe, Government Sector, IT Spending Forecast 2004-2009 predicted that government IT spending in Western Europe will grow at an average of 5.3 per cent between 2004 and 2009, compared with 4.5 per cent for the total IT market.

Local authority spending will be the strongest driver, growing from $28.7bn in 2004 to $24.8bn in 2009. Over the same period central government spending will grow by 4.8 per cent.

The analyst firm said that vendors will need to develop value propositions that match government requirements.

“IT vendors that want to sell their products and services in the government sector must provide solutions that match the requirements of that long-term transformation,” said Massimiliano Claps, program manager, IDC European Vertical markets.