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Annual Forecast:

State and Local Information Technology Market, 2010-2015  (Jul 2010)

INPUT's State and Local Information Technology Market, 2010-2015 report analyzes the trends in the state and local IT market and the issues that will shape the size and direction for vendor-furnished information systems and services by U.S. state and local governments.

Description

INPUT’s State and Local IT Market Forecast, 2010–2015 illustrates that demand for vendor-furnished information systems and services by U.S. state and local governments will increase from $52.8 billion in 2010 to $61.5 billion in 2015, bringing $8.7 billion in new funds to the market at a compound annual growth rate (CAGR) of 3.1%.

Key Findings

This report analyzes the trends in the state and local information technology market using a sample of the IT budget request recently released by governors, mayors, and county commissions, coupled with INPUT’s in-depth knowledge and understanding of state and local IT procurement and long-range IT plans to forecast spending trends over the next five years. When forecasting this market, INPUT focuses on trends related to technology, acquisition processes and regulations that will shape the size and direction of this marketplace.

Key forces currently shaping this market include:

• Gradual stabilization of state and local revenue streams
• Continued declines in state and local spending as federal stimulus funding runs out and is not replenished at the same level as previous infusions
• Implementation of technology to dramatically bend the cost curves in the Education (primary/secondary), General Government services, and Justice/Public Safety verticals
• Increased reliance on federal funding for IT systems providing operational support to federally-funded/state-operated programs in the Health Care and Social Services verticals
• Investments driven by federal demands for compliance in the areas of contract performance, transparency, reporting, and accountability

After a sustained period of relatively unbridled increases in state and local IT expenditures early in the decade, the market has entered a period fettered with uncertainty and complexity that has slowed the growth in IT spending. Still, state and local governments continue to look to technology to help address their goals and overcome challenges. INPUT believes that — while a “down” market drives governments to implement less costly technology solutions in a more sporadic fashion — it also forces the implementation of more innovative solutions that will drive widespread adoption in the next “up” market, which is not likely to begin until the end of the forecast period.

Critical Insight for Vendors

The report provides companies and other interested parties with a detailed view of state and local IT spending and a market forecast for the next five years, and is designed to enhance a vendor’s federal planning process with relevant strategic analysis and market forecasts. The report provides recommendations that will guide IT vendors to maximize their market positioning messaging and agency relationships to best take advantage of state and local business opportunities.

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Questions?

If you have any questions call 1-888-99-INPUT (46788) or send an email to info@input.com.