Western European Government IT Spending to Reach $50billion in 2009, Says IDC

MILAN, January 18, 2006 - According to a new IDC study, Western European government IT spending will reach $50 billion by 2009, increasing 5.3% between 2005 and 2009.

IT suppliers that want to win business in this area must target local authorities, offer solutions that stress the ability to join up processes across various departments, and support the deployment of shared services. “Government CIOs must leverage on internal staff and external resources to support this long-term transformation,” said Massimiliano Claps, program manager for IDC’s European Vertical Markets.

The study shows that government modernization processes have matured significantly over the past few years and will increasingly go beyond the publication of information on the Web and deployment of interactive services. Increased focus will be given to reengineering processes to join up services across authorities, sharing common functions, especially in the back office, and making the management of the IT infrastructure more coherent.

IT spending by local authorities in Western Europe will grow from $20.1 billion in 2005 to $25.5 billion in 2009, with a CAGR of 6.2%. Central government spending will grow at 4.5% over the same period. The study also reveals that U.K. central government IT spending will grow from $4.1 billion to $4.9 billion between 2005 and 2009.

Western Europe, Government Sector IT Spending Forecast Update, 2005-2009 (Doc #PP55M, November 2005) provides an overview of IT spending trends and forecasts in the Western European government sector. On the qualitative side, the study analyzes IT adoption trends in the sector and describes major drivers and inhibitors of IT adoption. On the quantitative side, it focuses on spending in hardware, packaged software, and IT services for the major European countries (France, Germany, Italy, Spain, and the U.K.). IT spending is provided for central government, local government, and central government sub-industries.

To purchase the study, please contact your local IDC office or visit www.idc.com .

About IDC
IDC is the foremost global market intelligence and advisory firm helping clients gain insight into technology and ebusiness trends to develop sound business strategies. Using a combination of rigorous primary research, in-depth analysis, and client interaction, IDC forecasts worldwide markets and trends to deliver dependable service and client advice. More than 700 analysts in 43 countries provide global research with local content. IDC’s customers comprise the world’s leading IT suppliers, IT organizations, ebusiness companies, and the financial community. Additional information can be found at www.idc.com .