Government investment in ICT is growing. At Forrester we expect the overall government ICT budget to reach $346 billion in 2011, growing to $382 billion in 2012 or by about 10%. That makes government one of the largest vertical industries – almost double the size of the retail industry, well above the telecom industry and actually behind only professional services and financial services. As government soul searching intensifies in the wake of the financial crisis, and in light of global competition and economic recovery, we expect the dawn of a new government – not “big government” but a government that operates more effectively and certainly more efficiently. What does that look like, and what does that entail? We see three primary trends:
A move to greater performance management processes with an emphasis on KPIs for specific programs rather than just budget targets.
An increased dependence on technology but with an eye to rationalization and consolidation, and an increased role of a centralized CIO to coordinate technology adoption;
And, a growing adoption of enterprise management tools with visibility not only into department level programs but including executive dashboards to enable a holistic view of the government.