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Government IT : Budgets Stabilize with Focus on Analytics and Modernization

By Dick Weisinger

After a period of economic turmoil and downsizing, government IT budgets seem finally to be stabilizing. Almost 75 percent of government IT budgets globally were reported as flat or increasing in 2013, according to a Gartner CIO survey.

Rick Howard, Gartner research director, said that “after years of being told to ‘do more with less,’ many government CIOs report that budgets have stabilised or are increasing, placing them in a better position to deliver and manage IT services more effectively and efficiently. These CIOs are now poised to boost the business value of IT by radically restructuring their services portfolio to drive innovation and improve the performance of government.”

The report identifies the following top business and technology priorities, as identified by government CIOs. Business Intelligence and Analytics has moved from fifth position to number one among technology priorities.

Top 10 Business Priorities Top 10 Technology Priorities
Delivering operational results Business intelligence and analytics
Improving IT applications and infrastructure Legacy modernization
Reducing enterprise costs IT management
Attracting and retaining customers Collaboration technologies
Implementing enterprise strategy Mobile devices
Attracting and retaining the workforce Mobile workforce application
Increasing enterprise growth Security technologies
Improving business processes Cloud computing
Increasing management controls Virtualisation – desktop
Implementing mobility solutions Service-oriented architecture

Christine Arcaris, research director at Gartner, said that “Cloud computing, in particular, continues to increase compared with prior years, driven by economic conditions and a shift from capital expenditure to operational expenditure, as well as potentially more important factors such as faster deployment and reduced risk. Other areas, such as data center consolidation, are lower on the list than in previous years, perhaps demonstrating that they may have met resistance in a more strategic roll-out. Vendors should be ready to reposition offerings according to these changing market dynamics.”

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