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This report presents the findings from a survey of 168 government institutions regarding their approach to Information and 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.
Introduction and Landscape
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 Global ICT Intelligence 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.
Key Features and Benefits
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.
Key Market Issues
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's survey, 71% of government institutions state that their ICT infrastructure is either very complex or somewhat complex.
Kable's survey finds that 69% of government institutions prefer on-site deployments, whereas 31% show an interest in deploying technologies as a hosted service.
Business objective relating to increasing customer satisfaction also has significant influence on IT investment strategy amongst government institutions, with average ratings of X on a scale of 1 to 4.
The IT objective of 'demonstrate the value of IT to the business' also has a significant influence on institutions' IT investments, with average rating of X on a scale of 1 to 4.
Factors such as financial stability and leading-edge technology are also considered to be equally important when choosing an ICT vendor, as government institutions give these objectives ratings of X each on the same scale.
Government institutions rate the CIO as the most influential authority when making ICT purchasing decisions, with the highest average rating of X on a scale of 1 to 4, followed by the CEO (X) and the CFO/Finance Director (X).