State and Local E-Gov Spending to Double by 2008
The state and local market for e-government products and services will reverse its dramatically declining growth trend in 2005 and more than double 2004 spending levels by 2008, according to a report released by INPUT, a provider of government market intelligence. Fueled by integration and consolidation of government-togovernment back-end systems, this growth will be preceded by two years of measured compound annual growth rate of 8 percent, accelerating rapidly in 2006 and 2007.
In the report, “State and Local E-Government MarketView,” INPUT projects state and local e-government growth will be moderate over the next two years as governments exhaust opportunities to further broaden Web site operations and engage consulting and research efforts to develop comprehensive plans for the next phase of egovernment. By FY 2006, system operations will dovetail with wider IT market trends to outsource noncore government competencies, beginning a cycle of pronounced growth to reach an approximate compound annual growth rate of 30 percent through FY 2007.
“Phase One of state and local e-government has essentially topped out as governments have largely exhausted cost efficiency and revenue-generating website solutions,” said James Krouse, manager of state and local market analysis at INPUT. “Phase
Two of e-government market development will be led with exploratory research initiatives that outline agency-by-agency process reviews, and develop comprehensive plans for integration and system consolidation. As governments complete plans and begin widespread integration and process improvement across agencies, services will increasingly be tied to new more fully interactive portals that will be automated for citizens,” he added.
The report notes the obstacles facing the next phase of state and local e-government are significant and include budget constraints, difficulty in producing measurable ROI, and jurisdictional turf war where agencies must integrate operations. The combined factors will force slow and calculated expansion in the e-government market over the next two years but will provide a strong platform for rapid growth thereafter as challenges are overcome.
To download a summary of INPUT’s State and Local E-Government MarketView, go to: http://stateegovernment.input.com.
About INPUT: INPUT is the lprovider of government market intelligence. Based in Reston, Virginia, INPUT provides market development services, advisory services, and software solutions to help clients secure new business, address new markets, and manage business development. For more information about INPUT, call 703-707-3500 or visit: http://www.input.com.
