Synopsis
This report presents the findings from a survey of 168 government institutions regarding their Information & Communications Technology (ICT) budgets and staff allocation. The survey investigates how government institutions currently allocate their ICT budgets across the core areas of ICT spend, namely hardware, software, IT services, communications and consulting.
Scope
Understand how ICT budgets are set to change in 2013 in terms of their overall size.
Appreciate how budgets are allocated across the core elements of ICT spend, including hardware, software, services, communications and consulting.
Learn how ICT money is being spent in areas such as the data centre, applications, IT management and the network.
Establish how IT staff are typically allocated within government institutions.
Gain insight into with whom government institutions plan to spend their ICT money.
Summary
Why was the report written?
In order to provide a depth of insight into ICT vendors’ and service providers’ potential customers.
What is the current market landscape and what is changing?
Government institutions have been investing a considerable percentage of their total ICT budgets in hardware, software, and IT services in 2012 and 2013. Although investment in software is dominated by spending on software licenses, government institutions are placing a lot of emphasis on the adoption of on-demand models such as software as a service (SaaS).
What are the key drivers behind recent market changes?
The adoption of SaaS is gaining momentum amongst government institutions primarily driven by advantages such as scalability, flexibility, cost reduction, and ease of management.
What makes this report unique and essential to read?
Kable Market Research Market Research has invested significant resources in order to interview CIOs and IT managers about their IT Budgets. Very few IT analyst houses will have interviewed 160+ ICT decision makers in the government sector in H2 2012.
Reasons To Buy
Government institutions invested 67% of their total ICT budgets in their core ICT systems in 2012, and retained this level of spending in 2013 as well.
In 2012, government institutions invested 25% of their total ICT budgets in internal development and maintenance, with spending in this area witnessing a slight increase of 1% in 2013, as institutions look to improve their transparency and develop customised solutions.
Government institutions have reduced their spending with specialist outsourcers by 1% in 2013 compared to 2012.
The increasing incidence of cyber and malware attacks is forcing government institutions to improve their security infrastructure. This is evident from the survey, as institutions are investing 12% of their total hardware budgets in this space.
In order to increase the agility of application development and rationalise and simplify the process of the software development lifecycle (SDLC), government institutions have been investing 17% of their total software budgets in application lifecycle management solutions in both 2012 and 2013.
Table of Contents
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
1.5 ICT budget allocation by function
1.6 ICT spending by entity
1.7 IT staff distribution
2 Detailed ICT budget allocations
2.1 Introduction
2.2 Hardware budget breakdown
2.3 Software budget breakdowns
2.4 Third party IT services expenditure
2.5 Telecommunications budget
3 Summary
3.1 The current economic environment is forcing government institutions to invest in technologies that enhance their productivity and efficiency
4 Appendix
4.1 Definitions
4.2 Further reading
4.3 Contact the authors
List Of Tables
Table 1: Government – enterprise ICT survey geographic breakdown
Table 2: Government – enterprise ICT survey breakdown by size band (number of employees)
Table 3: Recent and expected ICT budget changes among government institutions
Table 4: Government institutions’ (external) ICT budget allocation, 2012 and 2013
Table 5: Government institutions’ ICT budget allocation by function, 2012 and 2013
Table 6: Government institutions’ (external) ICT budget allocation by entity, 2012 and 2013
Table 7: Average allocation of full-time IT staff members in government institutions
Table 8: Government institutions’ average hardware budget allocation
Table 9: Average allocation of software budgets in government institutions
Table 10: Government institutions’ average software budget allocation by technology
Table 11: Government institutions’ average IT services budget allocation
Table 12: Government institutions’ average IT consulting services budget allocation
Table 13: Government institutions’ average telecommunications budget allocation
List Of Figures
Figure 1: Government – enterprise ICT survey geographic breakdown
Figure 2: Government – enterprise 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, 2012 and 2013
Figure 5: Government institutions’ ICT budget allocation by function, 2012 and 2013
Figure 6: Government institutions’ ICT budget allocation by entity, 2012 and 2013
Figure 7: Average allocation of full-time IT staff members in government institutions
Figure 8: Government institutions’ average hardware budget allocation
Figure 9: Average allocation of software budgets in government institutions
Figure 10: Government institutions’ average software budget allocation by technology
Figure 11: Government institutions’ average IT services budget allocation
Figure 12: Government institutions’ average IT consulting services budget allocation
Figure 13: Government institutions’ average telecommunications budget allocation
