Public sector ICT growth to peak in 2008

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Public sector spending on information and communications technology is set to rise at six per cent this year and next, before it levels off in-line with overall economic growth by 2012, according to a new study by public sector research firm Kable.

Growth in ICT spending will hit 5.8 per cent this year and peak at six per cent in 2008 before dropping to four per cent in 2011 and three per cent in 2012.

Kable said the total value of the market will be £15.9 billion this year - about 0.7 per cent of the UK's GDP - and rise to £20.2 billion by 2012.

"Efficiency will remain the key factor shaping public sector ICT investment, but with a change of emphasis," Kable said in a statement. "While previously, efficiency has implied a shift of resources out of the back office, we foresee that the priority will be to secure performance improvement in the front office."

Spending will not be even across all areas of the public sector, however. Local government should see growth increase over the period and justice ICT can expect double-digit expansion.

Defence and central government ICT spending will be weak, while health and education ICT will rise "slightly slower than the average," said Kable, which added that changes in spending are likely.

"With a major spending review under way, and a change of prime minister anticipated shortly, it would be surprising if we did not see changes to the structure of central government before the end of this year," said Kable.

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