Election outcome good for channel claims analyst

TechMarketView states certainty of a majority government will prevent delays in big IT projects

Government IT suppliers ought to breathe a sigh of relief at the election result, according to analyst TechMarketView (TMV), which claims the stability of a majority government will be better for business.

This afternoon the Conservatives secured a majority despite polls in the run-up to voting day consistently forecasting a tight race between the party and Labour which would eventaully end in a coalition.

Yesterday, many in the channel said they wanted more of the same in the next parliament, with many public sector IT suppliers hoping for a continuation of the Conservative-Liberal Democrat coalition in order to ensure stability with big IT projects.

TMV public sector research director Georgina O'Toole said a majority government would have a similarly positive impact on public sector procurement.

"Regardless of what you think of the result, for the suppliers to the public sector software and IT services market, the fact that it brings early certainty will be welcomed," she said on TMV's blog. "Without a majority government, we would have seen many weeks of uncertainty and likely delays in decisions around major government projects."

Throughout the election campaign, the Conservatives signalled more austerity would be on the way in order to continue its economic plan. O'Toole said this will mean the public sector could look to IT to save cash.

"We can now expect an even greater focus on driving efficiency savings; that will be the only option if the Conservatives can hope to meet their spending commitments," she said. "During the election campaign period, all parties, including the Conservatives, have highlighted the importance of ‘digitising government'.

"The real benefit for suppliers, and indeed for the national deficit, would come if the new government began to invest in innovative ICT solutions to save money from the broader budget.

"Unfortunately, there remains huge scepticism over the ability of ICT projects to deliver results, with Rural Payments, Universal Credit and smart meters perhaps we shouldn't be surprised."