Election will hit public sector IT spending

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The public sector IT market is set to wilt this year, as the election - and possible change in Government - hit spending.

So claims a new report from TechMarketView, which suggests private IT spending will overtake the public sector this year - the first time that's happened in a decade.

While public IT spending topped £10.9 billion last year, both Labour and the Conservatives are expected to make cuts if they win the looming general election.

“With a change of government expected later this year, IT suppliers to the public sector need to be prepared to adapt to new market conditions. The public sector has been the lifebuoy of UK IT for quite some time, so such a significant cut will have far-reaching consequences,” said TechMarketView research director Tola Sargeant, in a statement.

If Labour is re-elected, growth from 2009 to 2013 will be reined in to 2.9 per cent, while a Conservative government will see growth held to 0.8 per cent, the report said. Budget cuts will hit the sector, especially larger IT projects, with outsourcing used more often.

“However it’s not all doom and gloom, particularly if you’re in the outsourcing business, which is expected to be responsible for practically all the growth in the UK public sector over the next few years," Sargeant said.

"Numerous high-profile data leaks within the public sector in recent years and the government’s commitment to make government ICT carbon neutral by 2012 will also make data security and sustainability key priorities over the next few years,” she added.

And while the massive National Programme for IT will likely see cutbacks, health is still expected to be the strongest public sector, followed by education and Local Government.

Spending will shrink for central government, police and defence, the analyst firm predicted.

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