UK public sector ICT overview and forecast to 2015-16 shows the sector is in the midst of a marginal decline, but it should be reversed to provide mild growth by the end of the period.
The total spend is estimated at £17.99bn for 2010-11, to slip to £17.75bn in the next financial year, followed by another mild decline in 2012-13, with the 1.5 per cent overall increase to happen by 2015-16.
The effort to cut operational costs is helping to maintain, and in some cases increase spending on outsourcing and managed services.
While the cuts are the most high profile factor at work, there is also a widespread move to reform public services.
Local government is expected to lead the recovery as it will have to adapt quickly to the new scenario, taking the sector's total from £3.22bn in 2010-11 to £3.96bn in 2015-16. In addition, radical reforms in the health service are going to need a considerable investment in ICT, and the current dip in spending will soon be reversed.
While Whitehall may spend a little more on outsourcing, its overall ICT spend is forecast to fall and it is expected to be the last to come out of the decline only at the end of the five year period. The recovery is also expected to be slow for defence, criminal justice and transport.
Stephen Roberts, Kable's research director, said: "The data in this report can help suppliers to get the timing right and to link their offerings to each customer's pace and priorities."
Further information:
Kable
Government ICT spend to rise
New research by Kable has shown that public sector ICT spending will rise to £18.27bn by 2015-16 despite spending cuts.
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