Government Insights Asia/Pacific Says APEJ Public Sector Spending On ICT In This Region Will Rise Despite Weakening Economy

Public Sectors Will Focus On Investments That Are Expected To Steer The Economy Toward Recovery

Singapore and Hong Kong, February 17, 2009 – The Asia/Pacific (Excluding Japan) or APEJ public sector will dig deep, but strategically, into its resources to focus on long-term investments that are expected to steer the weakening global economy back onto the path of recovery, says leading independent research and advisory firm Government Insights, an IDC company. More insights can be found in its latest report, “Asia/Pacific Government 2009 Top 10 Predictions" (Doc # AP638101S, January 2009).

"Citizens are placing the onus of reviving the ailing economy on their governments. As such, the public sector will be under increasing scrutiny. Despite having to operate in such an exceptionally challenging environment, the public sector in this region remains a high value and stable opportunity for ICT vendors, as ICT investment and management are closely aligned with governments' goal of economic recovery," says Raphael Phang, Vice President, Government Insights, Asia/Pacific.

Specifically, wider public sector goals such as digital inclusion and sustainable development are expected to frame and drive spending in infrastructure development and manpower upgrading. In the short term, enhanced planning and forecasting capabilities, new business models, and best practices will be leveraged to achieve value optimization and cost reduction.


Trends in the year ahead
Government Insights observes that the APEJ public sector will take on a new business role in both regulating and rejuvenating the economy throughout the year.

In particular, 2009 will throw the spotlight on public infrastructure projects, which will be pursued to stimulate economies. While the business community expects the government to drive economic recovery through expenditure, public sector investment behavior will be scrutinized and the government held accountable to a greater degree than before, in the wake of weakened institutional confidence.

ICT spending will thus take a more cautious tone, anchored by the overarching objective of value optimization. This priority may be reflected in the public sector's renegotiation of existing contracts to maximize service value and partner expertise, and in a shift towards multi-vendor sourcing.

A Whole-of-Government Agenda Will Characterize ICT Investments
National ICT plans in the APEJ region will be reviewed in the light of the current economic situation with a focus on increasing cost savings and identifying holistic initiatives with the greatest impact on economic development. Initiatives that have an impact cutting across different branches of government are thus likely to be developed.

Business Analytics Will Assume Strategic Importance In Volatile Times
Public sector executives in the APEJ region will look increasingly to the analytical insights offered by business intelligence (BI) tools to help them manage rising security threats, meet growing compliance requirements, become more efficient, and enhance and manage performance in the large-scale modernization plans.

ICT For Sustainable Development Will Gather Pace In the Context Of Cost Reduction
As the global momentum of environmental consciousness grows, the public sector risks being impelled to react to public pressure and regulatory mandates that will eventually affect its processes, if it does not act now and maximize its unique position to shape these policies. "Lean IT," which first and foremost reduces costs (and as a byproduct, carbon emissions), leads the public sector Green IT agenda, and will continue to gather pace in the context of cost reduction in a weakening economic climate.

Governments Will Dabble With Social Networking And New Media

The influence of social networking and new media has seen unprecedented citizenry reach and participation in the past year. Government Insights foresees acceleration of the use of Web 2.0 technologies in governments in 2009 as the public sector look for not just more, but also efficient, ways to connect with its stakeholders.

For more information on purchasing or obtaining this report, Asia/Pacific Government 2009 Top 10 Predictions" ( Doc # AP638101S, January 2009). Please contact Selina Ang at +65-6829-7717 or sang@idc.com.