Despite state and local budget crunches IT spending is anticipated to continue to rise, though at a slower pace. Nonetheless innovative approaches to alleviating government pain points offers vendors prime business opportunities. Further, vendors should not jump ship only to return when the state and local market is hot again; this does not demonstrate to clients that companies are there for the long haul and will negatively impact future business.

Keynote speaker, George Newstrom, a highly experienced public and private sector IT professional and former Virginia Secretary of Technology provided unique insights into state and local government for MarketView attendees on June 4, 2008. Providing global context, Newstrom indicated that $2.3 trillion in IT dollars were spent in 2007 and by 2011 $4.4 trillion is anticipated. Over the next few years a 5% IT market growth is anticipated in the Americas. The overarching theme was that these figures indicate that despite a weakening economy IT will remain strong and maintain a crucial role in greater efficiencies in government.

Newstrom offered five pieces of advice for state and local government vendors:

First, be proactive versus reactive. Responding to RFPs can lead to success from time to time, but Newstrom advises vendors to be innovative. Vendors should seek to find pain points within government entities and formulate solutions that meet their business needs before anyone else does.

Second, no more "solutions du jour". Hone in on the problem and develop long-term solutions.

Third, do not sell IT for the sake of IT. The key to winning a contract is determining what the real problem or pain point is and how technology can improve upon that problem.

Fourth, be present and provide corporate commitments to your clients. Vendors need to determine their state and localities of primary interest and need to be physically present in that area.

Fifth, cultivate staying power. State and local vendors tend to have short attention spans especially when the return on investment is not immediate. State and local business and reputations are often determined by sticking around even through periods of inconsistent revenue.