IDC Finds eGovernment is a Key Priority for Australian Governments

NORTH SYDNEY – FEBRUARY 18, 2002 – A new IDC regional study examines the impact of eGovernment initiatives in Asia Pacific, focusing on Australia, China, Hong Kong, Korea, and Singapore, and highlighting the opportunities and challenges for governments and their suppliers.

 

IDC's study has discovered that governments in Australia and across Asia Pacific are launching ambitious eGovernment initiatives, using electronic technologies to improve both internal operations and public service delivery. By embracing technology, governments are finding they can reap the same type of rewards as eBusinesses, said Lisa Shishido, Senior Analyst eBusiness & eGovernment, IDC Australia, who authored the report Asia Pacific eGovernment Strategies.

These rewards include more efficient business processes, improved public services, and cost savings, allowing governments to do more with less all of which lead to greater satisfaction with government. It's a chance to transform their infrastructure and organisational structure, bringing them into the 21st century, she said.

While Australia is one of the most advanced eGovernments in the region, there is still a lot of work to be done and the federal, state, and local governments recognize that. Their goals are ambitious and their strategies will continue to evolve as they strive to meet them, Shishido said. Meanwhile, the federal government must provide leadership in efforts to provide integrated services that cut across all levels of government, she added.

Over the coming years, IDC forecasts governments around the world will increase their spending on eGovernment initiatives as they devote more resources to e-enabling government business functions and providing electronic services. IDC's 2001-2003 eGovernment forecast illustrates that spending on eGovernment initiatives will claim a growing portion of Australian public sector IT spending in the years ahead.

The five countries that IDC chose to profile in-depth included: Australia, China, Hong Kong, Korea, and Singapore the study found that eGovernment spending will grow fastest in China, at a compound annual growth rate of nearly 40%. Meanwhile, eGovernment spending in Singapore and Korea will experience robust growth at over 20% over the forecast period, and eGovernment spending in Australia and Hong Kong will grow steadily at 15% and 13% respectively.

eGovernment is a key priority for many governments, and government spending is relatively stable, even in times of economic hardship. This creates major opportunities for IT vendors and service providers as the public sector seeks advice, products, services, and partnerships in implementing eGovernment projects, said Shishido.

Governments in Asia Pacific, including those in Australia, are still in the primary stages of eGovernment. The sophistication of their services and systems will grow and new opportunities will emerge as they progress along the eGovernment maturity curve, said Shishido. Currently, most governments are at the stage where they have a narrow focus on providing electronic services and achieving agency-by-agency operational efficiency without fully considering the benefits they can achieve by approaching it as an eBusiness transformation, she added.

IDC's Asia Pacific eGovernment Strategies report contains the findings of a comprehensive study of eGovernment initiatives in Australia, China, Hong Kong, Korea, and Singapore. In conducting the study, IDC interviewed high-level government officials and major technology/service providers. Asia Pacific eGovernment Strategies addresses the key issues governments are facing in moving online, with a focus on what each government is doing and why. It also includes a discussion of worldwide eGovernment trends, challenges and opportunities for governments and suppliers, critical eGovernment success factors, rankings of each government according to eGovernment readiness, and market sizing and forecasts for eGovernment spending.

About IDC

IDC is the foremost global market intelligence and advisory firm helping clients gain insight into technology and eBusiness trends to develop sound business strategies. Using a combination of rigorous primary research, in-depth analysis, and client interaction, IDC forecasts local and worldwide markets and trends to deliver dependable service and client advice. More than 700 analysts in 43 countries provide global research with local content. IDC's customers comprise the world's leading IT suppliers, IT organisations, eBusiness companies and the financial community. Additional information can be found at www.idc.com.au