Governments to boost IT spending.

Research firm IDC is predicting a big ramp-up in government spending on IT systems this year. A Global Insights report from IDC says government IT spending worldwide will increase by $9.1 billion in 2007 to reach $150 billion and will continue to grow at 4.1 percent annually until 2010.

The report also found that governments will not be spending D indiscriminately; they will be carefully scrutinizing their IT investment decisions to guarantee better return on investment.

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The IDC report stated that government IT spending will continue to be a priority to the extent that it drives or holds down operational costs and improves service delivery to citizens, businesses, and government partners. However, it will receive greater scrutiny in the upcoming budget cycle, Teresa Bozzelli, managing director of Government Insight at IDC, said in a press release.

The report's top predictions include:

1. Governments will pursue standardization and consolidation. IDC says this trend continues to be driven mainly by the global movement to reduce operational costs and increase government value through improved service delivery. Government organizations will pursue this path because they recognize that integrating applications, systems, and processes will improve interoperability, operational effectiveness, and use of the technology infrastructure that serves as the foundation for measurable government outcomes.

2. Information sharing and interoperability will drive improved government service delivery, but also call for new business and decision-making models to maximize IT value.

3. Government will create new procurement models and strategic sourcing strategies. New collaborative business processes will drive this trend.

As for these new models and strategies, Bozzelli said that each IT program must be "defined, justified, managed, and measured within the context of citizen-centric, value creation."