HONG KONG, 29 JUNE 2009—Most new government budgets do not single out IT spending but incorporate it as part of their urgent national initiatives, said US-based research firm IDC.
According to the latest IDC Government Insights study, Economic Stimulus and Expansionary Budgets: Tabulating the Government's Response to the Economic Downturn in Asia/Pacific, US$767 billion worth of initiatives have been unveiled by governments in Asia/Pacific (excluding Japan), or APEJ, between August 2008 and April 2009. The initiatives range from economic stimulus packages and expansionary budgets to the advancement of planned spending and projects.
Gerald Wang, market analyst for IDC Government Insights Asia/Pacific said, “Most new government budgets do not single out IT spending but incorporate it as an element of a new and urgent government initiative. Despite this, it is still welcoming news for both government technology officers and information technology vendors.”
Based on the initiatives announced by governments across the APEJ region, IDC Government Insights analysts have identified the following key areas of investments, the implications of these priorities on ICT spending, as well as potential opportunities for businesses. These investments will begin in late 2009 and continue through 2014.
Infrastructure: Remote monitoring
Infrastructure projects not only create jobs immediately but also boost citizen services as they provide opportunities for government agencies to redress aging issues and problems with congested transportation systems, or upgrade healthcare and educational facilities. The spike in infrastructure projects will likely boost ICT investments in such areas as remote monitoring for building maintenance, automated adherence to stricter safety standards and environmental compliance, such as industry emissions-monitoring technologies.
Future Schools: Infrastructure upgrade
Future schools, which leverage on innovative technologies and business models to reach their target groups, will emerge as a key investment area for governments because they address the objective of governments to create jobs through upgrades in educational infrastructure. An example of public-sector ICT spending that is likely to arise from the emergence of future schools is the upgrade of existing ICT infrastructures within educational institutions across all levels.
Healthcare: E-patient records
Healthcare is a key investment area for governments as it is related to job creation, skills development, citizen-services enhancement and digital inclusion. Healthcare investments provide a clear boost to public-sector ICT investments. For example, to accelerate the move towards digital patient information, investments will have to be made in upgrading the existing ICT infrastructures of hospitals.
Green IT
The current financial crisis provides a window of opportunity to restart the economic engine with a focus on long-term solutions that are economically, socially and ecologically sustainable. In this context, national stimulus packages, in varying degrees, are seeking to not only revive but also make ‘green’ their national economies.
Green technologies also help government agencies meet cost-cutting and budget optimisation goals by helping them focus on energy efficiency. Investments made to strengthen green infrastructures across APEJ countries have clear implications for technology spending in areas such as intelligent grid technologies, energy efficiency technologies, environmentally sound technologies that generate low or zero waste.
Wang said, “While current economic stimulus priorities will have a dominant impact on the short-term investment behaviour of APEJ governments, it is worth noting that ongoing strategic concerns, such as the rising threat of transnational terrorism, should be continually addressed in order to ensure economic stability over the long run.”
