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Local government IT spending has skyrocketed

Following a decline in 2012, local government IT spending started to grow again last year, according to a new report.

Conducted by market research firm TechMarketView, the study claims that the UK public sector technology market should be growing more than 50 per cent faster than the private sector by 2017.

The survey, which analysed public sector spending on software and IT services, or SITS, claims that central government still dominates the market, accounting for 43 per cent in 2013 - however, the report describes this as a “mid single digit percentage decline.”

“Most affected were the large infrastructure services providers, which struggled to defend and maintain existing business in a changing procurement environment while also finding major new contracts a rarity,” it claims.

According to the report, business was better than this in the wider public sector market – particularly in Police spending which grew by 13 per cent.

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“In local government, education, health and Police, the market performance was positive to varying degrees,” says the document.

“Indeed the local government SITS market swung from a decline in 2012 to marginal growth last year, as both infrastructure outsourcing and application services activity picked up significantly,” it adds.

The analysis also looks ahead to the future, predicting that after May 2015’s General Election, growth will change “very little.”

“The part in power will continue to drive down ICT costs. All parties have also shown support for the public service digitisation; any difference is likely to be in the approach to achieving those aims,” it claims.