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December 7, 2015

Public sector increases ICT spend in e-government push

Analysis: Kable Global ICT Intelligence – ICT budgets have grown this year with hardware and software leading investments.


Government organisations in the UK are prioritising their investments in ICT to introduce e-government services. This will help improve efficiency and effectiveness of internal administration.

Analysis from Kable has found that from 2014 to 2015, 36% of public sector organisations have increased investment in ICT, compared to only 24% the previous year.

28% of institutions have slightly increased their ICT spending between 1% and 5%, while 8% have invested 6% or more.

This contrasts to last year where, from 2013 to 2014, only 2% of companies planned a significant increase of 6% or more.

The number of companies with unchanged budgets has dropped to 37% in 2014-2015, compared to 46% in 2013-2014.

Overall, UK government institutions have spent 27% of their ICT budget on hardware, followed by 23% on software.

This is followed by 15% in services, 14% in communications, 12% in consulting and 9% on other IT verticals.

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On hardware, the main three verticals for investment this year were clients (18%), network and communication equipment (13%) and high end servers (13%). The least invested area was processors at 7%.

As for software, British government institutions heavily invested in software licences, with 32% of their budgets going towards this area. Software vendor support costs and maintenance took 21% of ICT budgets, SaaS 18%, PaaS 17% and the remaining 12% was spent on ‘other’ software solutions.

All figures come from Kable’s ICT Customer Insight survey, which surveyed 135 British governmental institutions on ICT budgets for 2015. Subscribe to Kable here.


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