If you're interested, don't get caught twiddling your
thumbs. Now is the time when entrepreneurs eyeing the e-government
space should jump in. Here's why: There is a central tension
developing in the industry between the large companies like KPMG
Consulting that provide e-procurement services and smaller
companies like MunicipalNet Inc.
Some big firms are pushing for a top-down approach to
e-procurement on a state level, hoping to profit by requiring local
city and county governments to use the state system for a price. If
the plan succeeds, growing businesses may get pushed out of
contention.
Nute sees a window of opportunity over the next year and a half
for small businesses to win municipalities over before large
companies move in. "It really has to do with who can serve the
needs of the government best," says Nute. "Those large
consulting firms are probably doing a great job of serving the
needs of those large governments, but I think it's a little
presumptuous of them to think they understand local government well
enough to be able to offer solutions."
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