Tuesday, March 3, 2009

Emerging Trends in State and Local IT Spending

As you’ve seen for yourself if you’ve been reading some of the links I’ve posted recently, Washington Technology has been doing a great job of covering the stimulus package and the corresponding rise in State and Local spending patterns for IT.

Today, they published two articles, one, a Who’s Who in the State and Local Market, and the other, a color commentary companion piece by William Welsh, which emphasizes some key points about where the opportunities may be in this exploding market:

1) “Sharp rise in demand for call center services.”
With reduced resources and more people in need of services from their government, call center volumes are through the roof.

2) “Incumbents are likely to be in the best position for the added work.”
So you're not an incumbent? Partner! Partner! Partner! Subcontract to a Prime! Prime a contract with a major as your sub!

3) “Strong push for shared services in several states.”
This open the door to lots of interesting possibilities.

4) “Statewide agencies putting aside turf battles during such economic times and being more supportive of statewide IT consolidation efforts.”
Outsourced hosting anyone? Portals? SOA? BI?

5) “Environment… is ripe for the real cost-effective solutions that IT can provide”
Elimination of redundant systems.

6) “States want to get [unnecessary] costs out of their infrastructure.”
State CIOs can use their budgets more efficiently by consolidating key aspects of agencies' IT portfolios.

7) “Any large-scale physical infrastructure modernization that would take place as a result of the stimulus is likely to have a technology component attached to it.”
Systems that enhance and facilitate the efficient flow of "shovel-ready" projects will be winners in this area.

8) “State and local governments will require assistance tracking stimulus funding expenditures and outcomes as part of the Obama administration’s push for greater transparency in government."
Compliance, auditing, data warehousing, and BI all have a play here.


This post first appeared at http://becraftsblog.blogspot.com. Your feedback is welcome.

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