Australia's Government Sector will Pursue Technology Investments that Promote Streamlined Service Simplification, Cost Optimization & Modernization Opportunities: IDC Government Insights
07 Apr 2014
Sydney, April 1, 2014 – Australian governments (State and Federal) are expected to be pursuing more conservative fiscal policies and wider socioeconomic initiatives. Notably, government ICT investments will be guided by three strategic principles, "deliver better services, improve the efficiency of government operations and engage openly."
IDC Government Insights expects Australian public sector agencies to be investing in ICT that promotes enhanced and streamlined service simplification, overall operational costs reduction as well as government ICT modernization opportunities.
Spending Patterns Signify Potential Growth in Cloud Storage and Business Analytics
IDC Government Insights forecasts Australia's government ICT spending to reach A$5,610.26 million in 2014, and will grow to A$5,876.84 million by 2017 with a 1.3% five-year compound annual growth rate (CAGR). In addition, there is notable growth in government ICT spend within storage hardware (6.9% five-year CAGR) and software overall (5.7% five-year CAGR), signifying a potentially growing cloud and big data & analytics movement.
Nonetheless, these forecasts reflect a relative slowdown in government ICT investments growth across the Australian government sector. This is most likely due to a number of macro-level economic factors in the domestic market which led to constrained budgets for Federal and State governments, a sharp slowdown in spending during the last six months of the Federal Labor Government, and a priority of shifting to ICT investments that deliver tighter consolidation and enhanced efficiency capabilities.
Looking Ahead- 3rd Platform Technologies, Particularly Mobility as a Transformative Indicator
Australian government organizations need to gain greater clarity of the way 3rd Platform technologies (i.e., cloud, Big Data and analytics, social business, and mobility) drive organizational efficiency, citizen engagement, and improvements in service delivery. Consequently, new engagement and business models will start to emerge as a result.
With these new ICT capabilities, gradual change in business model innovations will take place (e.g., new operational cost models). IDC Government Insights believes that new ROI benchmarks (e.g., for customer engagements, e-government service excellence and service-levels, etc.) will have to be put in place to ensure careful planning and methodical implementation efforts so as to meet national productivity objectives.
IDC's Annual ANZ CIO Survey 2013 showed that the continued drive for government mobility will feature as a critical area of investment growth and opportunity focus for vendors seeking opportunities with the Australian Government in 2014. This applies to both utilization of mobile as a channel by government organizations involved in service delivery, engaging through citizens in the mobile channel and building out mobility capabilities for government staff in order to drive more flexible working practices and greater staff productivity.
More insights are revealed in the report, "Australia Government ICT 2013–2017 Forecast and Analysis” (Doc #AU245336)
Gerald Wang, Research Manager, IDC Government Insights, says, "The Australian government sector is on a transitional track towards WOG citizen–focused services through the smarter use of ICT. Federal and State governments continue the investment focus on driving productivity through the adoption of new technologies to achieve cost savings whilst improving services. Notably, growing interests in Government Mobility will feature as a critical ICT market growth and opportunity focuses for the Australian Government in 2014."
"The Australian government ICT market will continue to be defined by budgetary constraint. Technologies that are able to support real productivity improvement on the one hand and those that can support new models for citizen engagement and service delivery will continue to receive focus of government investment. Outside of anticipated mobility and cloud investments, another important area of investment we are going to see will be associated with the government's increasing realization of the importance of citizen data, and particularly the use of analytics for the delivery of intelligent services and more targeted policy development," concludes Emilie Ditton, Head Vertical Markets, IDC Asia/Pacific.
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