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ICT investment trends in government

ICT investment trends in government

Summary
Government spending, especially on government entities, is affected by a wide range of external factors, such as earthquakes and floods. However, there are other important determinants that affect overall government spending, which are limited to specific categories including government policies, politics, and demographics

Key Findings
Government spending in particular is affected by many factors including tax policies, monetary policies, and trade policies, which play a vital role during government budgeting and resource allocation. However, a careful evaluation of these factors will help government institutions make decisions pertaining to ICT expenditure.
The survey indicates that the majority of government institutions are willing to increase their ICT budget slightly or significantly.
According to the survey, government institutions are investing in enterprise applications and content management to support a seamless flow of information across different departments and to manage content integration, data automation, process management, and accessibility on-the-go.

Synopsis
This report presents the findings from a survey of 109 government institutions regarding their Information & Communications Technology (ICT) investment trends. The survey investigates how government institutions currently allocate their ICT budgets across the core areas of enterprise ICT expenditure: hardware, software, IT services, communications, and consulting. The report illustrates the core technologies that institutions are investing in, including enterprise application, content management, IoT, and cloud computing. The survey also highlights the approach to purchasing technology adopted by government institutions. Through Kable’s survey, the report aims to provide a better insight to ICT vendors and service providers when pitching their solutions to government institutions. The report focuses on government institutions’ ICT expenditure trends for specific business areas and technologies, identifying the top three IT projects, and understanding the business challenges faced by organizations.

In particular, it provides an in-depth analysis of the following:
How ICT budgets are set to change in 2016 in terms of their overall size
Allocation across the core elements of IT spend, including hardware, software, services, communications, and consulting
Distribution of ICT money in areas such as the networks, applications, service desk, and data centers
Which ICT functions government institutions are interested in outsourcing
Government institutions’ investment priorities based on their budget allocations across core technology categories such as IoT, cloud computing, business intelligence, and security products
Factors that are influencing government institutions’ investments in each technology category
How government institutions’ IT budgets are currently allocated across various segments within a technology category
Government institutions’ distribution of their ICT budget across various segments within a technology category
Vendor satisfaction ratings for various core and advanced technology categories
Insight into government institutions’ preferred buying approaches
Business and IT objectives that government institutions are looking to achieve through their IT investment strategies
Factors that are influencing government institutions’ decisions to select an ICT provider

Reasons To Buy
Understand how government institutions' ICT landscape is set to change in 2016 to prioritize your target market
Comprehend how ICT money are being allocated by government institutions in specific geographies and size bands to improve your market penetration
Make effective business decisions by recognizing the opportunities within each of the core areas of ICT spend (hardware, software, IT services, telecommunications, and consulting)
Realign your sales initiatives by understanding the current strategic objectives of government institutions
Enhance your market segmentation with the included, detailed breakdown of opportunities within selected technology categories (enterprise application, content management, IoT, and cloud computing)
Prioritize your focus areas by understanding which factors are influencing government institutions’ decisions when selecting an ICT provider
Understand the changes in customers’ priorities and identify the business and IT objectives that government institutions are looking to achieve through their ICT investment strategies


1 Trends in ICT budgets
1.1 Introduction
1.2 Survey demographics
1.3 ICT budget changes
1.4 ICT budget allocation by core technology area
1.4.1 Hardware budget breakdown
1.4.2 Software budget breakdown
1.4.3 Third party IT services expenditure
1.4.4 Communications expenditure
1.4.5 Cloud computing budget
1.5 ICT budget allocation by function
1.6 Outsourced IT functions
2 ICT investment priorities and vendor satisfaction
2.1 Introduction
2.1.1 Enterprise applications
2.1.2 Content management
2.1.3 IoT
2.1.4 Cloud computing
3 ICT procurement trends
3.1 Introduction
3.2 Business objectives influencing IT investment strategy
3.3 ICT provider selection
3.4 Key decision maker for purchasing technology
4 Sector-specific trends
4.1 Introduction
4.2 IT expenditure plans for specific technology areas
4.3 Business areas receiving the largest investments
4.4 Business challenges
5 Summary
5.1 The appreciating IT expenditure of government institutions is leading to the adoption of disruptive technologies
6 Appendix
6.1 Definitions
6.2 Further reading
6.3 Contact the authors
List of Figures
Figure 1: Government institutions - ICT survey geographic breakdown
Figure 2: Government institutions - ICT survey breakdown by size band (number of employees)
Figure 3: Recent and expected ICT budget changes among government institutions
Figure 4: Government institutions’ (external) ICT budget allocation, 2015 and 2016
Figure 5: Government institutions’ average hardware budget allocation
Figure 6: Average allocation of software budgets in government institutions
Figure 7: Government institutions’ average IT services budget allocation
Figure 8: Government institutions’ average communications expenditure
Figure 9: Government institutions’ average cloud computing budget allocation by technology
Figure 10: Government institutions’ average cloud computing budget allocation by implementation type
Figure 11: Government institutions’ ICT budget allocation by function, 2015 and 2016
Figure 12: Outsourced IT functions – Government institutions’ current and future outsourcing priorities
Figure 13: Enterprise applications – Government institutions’ current and future investment priorities
Figure 14: Enterprise applications – selected primary provider and vendor satisfaction among government institutions
Figure 15: Content management – Government institutions’ current and future investment priorities
Figure 16: Content management – selected primary provider and vendor satisfaction among government institutions
Figure 17: IoT – Government institutions’ current and future investment priorities
Figure 18: IoT – selected primary provider and vendor satisfaction among government institutions
Figure 19: Cloud computing – Government institutions’ current and future investment priorities
Figure 20: Cloud computing – selected primary provider and vendor satisfaction among Government institutions
Figure 21: Business objectives which influence telco/service providers' IT investment strategy
Figure 22: Factors influencing telco/service providers' decision to choose an ICT provider
Figure 23: Role of key entities in making ICT purchasing decisions
Figure 24: The appreciating IT expenditure of government institutions is leading to the adoption of disruptive technologies
Figure 25: Top three IT projects in 2016 for government institutions
Figure 26: Importance of the following business challenges for government institutions

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