Synopsis
This report presents the findings from a survey of 168 government institutions regarding their approach to Information & Communications Technology (ICT) procurement. The survey investigates the way that government institutions like to purchase technology, as well as the major IT and business objectives influencing their IT investment strategies.
Scope
Provides insights into government institutions’ preferred buying approaches.
Comprehend the business objectives that government institutions are looking to achieve through their IT investment strategy.
Appreciate the IT objectives that government institutions are looking to achieve through their IT investment strategy.
Understand the factors that are influencing government institutions’ decision to select an ICT provider.
Understand which organisational roles influence ICT purchasing decisions and signing off budgets.
Summary
Why was the report written?
To highlight the criteria on which government institutions select their ICT providers as well as the roles which have influence while making ICT purchasing decisions.
What is the current market landscape and what is changing?
Government institutions have an optimistic approach towards IT investments, and their preference towards hosted services is slowly gaining traction.
What are the key drivers behind recent market changes?
Government institutions are gradually shifting their focus to hosted deployments to achieve significant cost savings and reduce their ICT infrastructure complexity.
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 Procurement. Very few IT analyst houses will have interviewed 160+ ICT decision makers in the government sector in H2 2012.
Reasons To Buy
Purchasing technologies from national resellers is the least preferred approach for government institutions as they are not easily accessible to provide value-added services and timely after-sales support.
Factors such as security concerns, the dearth of official and contractual frameworks, and the nascent stage of the cloud computing market are hindering the rapid adoption of the hosted model amongst government institutions.
Government institutions are keen to improve their operational efficiencies by streamlining their core processes and adopting lean methodologies. This is clear from the survey, as institutions give the objective of raising efficiency the highest average rating of X on a scale of 1 to 4
As institutions are trying to improve their profitability by reducing costs amidst uncertain economic conditions, they are placing more emphasis on vendors who are able to provide them with flexible pricing models and solutions that provide value for money.
According to Kable Market Research’s survey, 71% of government institutions state that their ICT infrastructure is either very complex or somewhat complex.
Table of Contents
1 Enterprise ICT investment trends
1.1 Introduction
1.2 Survey demographics
1.3 ICT budget changes
1.4 ICT investment priorities
2 ICT procurement trends
2.1 Introduction
2.2 Purchasing channels
2.3 Business objectives influencing IT investment strategy
2.4 IT objectives influencing IT investment strategy
2.5 ICT provider selection
2.6 Influencers
2.7 ICT infrastructure environment complexity
3 Summary
3.1 Hosted deployments are gaining traction amongst government institutions as they look to improve their operational efficiencies
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: Current and future investment priorities of government institutions across core technologies
Table 5: Government institutions’ preferred approach to buying technologies
Table 6: Business objectives which influence government institutions’ IT investment strategy
Table 7: IT objectives which influence government institutions’ IT investment strategy
Table 8: Factors influencing government institutions’ decision to choose an ICT provider
Table 9: Influence of organizational roles in making ICT purchasing decisions and signing off budgets
Table 10: Complexity of ICT infrastructure in government institutions
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: Current and future investment priorities of government institutions across core technologies
Figure 5: Government institutions’ preferred approach to buying technologies
Figure 6: Business objectives which influence government institutions’ IT investment strategy
Figure 7: IT objectives which influence government institutions’ IT investment strategy
Figure 8: Factors influencing government institutions’ decision to choose an ICT provider
Figure 9: Influence of organizational roles in making ICT purchasing decisions and signing off budgets
Figure 10: Complexity of ICT infrastructure in government institutions
