Public sector IT spending set to reach £11.5bn

6 Sep 01
Public sector spending on IT is set to soar by 13% per annum for each of the next two years, according to a survey from Kew Associates and Computer Weekly magazine. Total spend by the public sector next year is predicted to reach £11.5bn.

07 September 2001

The biggest growth will be in schools and education, with an increase in desktop PCs and Internet access. Central government and health show the next largest increases. The government has committed £1.3bn by 2004 to connect all GPs to the Internet, introduce electronic prescribing and digitise patient records.

Public bodies expect to raise spend per employee by 17% to £5,025, compared with £2,476 by private sector corporations.

Kris Wicka, managing director of Kew Associates, said that much of the increase in public sector spending has been led by the e-government initiative and mirrors corporate activities in achieving greater organisational integration and more effective websites.

The survey results were endorsed by IT consultancy ICL. But government marketing manager Dave Denison warned that managers' expectations had yet to be converted into budget increases. 'It means taking budgets out of real services and allocating to electronic services,' he said.

PFsep2001

Did you enjoy this article?

AddToAny

Top