GOVERNMENT ICT SPEND
SET TO INCREASE

South Africa's ICT spend is healthy, despite several external and internal economic factors stunting the country's growth.

Addressing delegates at one of the breakout sessions at SITA's GovTech 2009 conference, Lesley-Anne Dos Santos, enterprise research manager at BMI-TechKnowledge, said that South Africa's state-owned enterprises play a vital role in increasing economic growth, which forms part of South Africa's accelerated growth strategy.

She said capex infrastructure plans continue to go ahead, and with it, job creation. Government spend was positively influenced by energy costs, however the current economic slowdown is impacting government ICT budgets.

According to BMI-T's ICT in Government Programme report for 2008, South Africa's economic drivers include increased ICT competition, especially in view of 2010. Technology drivers, such as broadband access, convergence, unified communications, managed data services, virtualisation and outsourcing also demanded organisations to up their spend.

Government in particular was also a major driver of the country's economic growth, thanks to the introduction of the Electronic Communications Act, industry spend on e-government initiatives, as well as addressing the digital divide.

The major culprits inhibiting growth was the global economic slowdown across all industry sectors, as well as the current exchange rate. Add to that bandwidth constraints, interconnection prices, skills shortages and market consolidation and the picture looks rather bleak, she said. At government level, the lack of an integrated ICT strategy, ICT capacity constraints and delay in implementation, are severely hampering progress.

The SA ICT market size in 2007 was estimated at R174 billion, with IT representing R58 billion, while telecoms accounted for R116 billion. BMI-T predicted that in 2012, the ICT market would sit at an estimated R246 billion, with IT representing R85 billion and telecoms R161 billion.

Total government ICT expenditure, which includes hardware, software, services and communication at national, provincial and local government levels, has increased from R12.3 billion in 2007/8 to R12.8 billion in 2008/9.

BMI-T says the government big spenders for 2009/10 include the Dept of Justice and Constitutional Development, the Dept of Home Affairs, the Dept of Public Service and Administration, the Dept of Trade and Industry, the Dept of Safety and Security, as well as the Dept of Science and Technology.

Dos Santos said government's aim is to increase the uptake, usage of, and access to ICT through partnerships with business and civil society to directly and indirectly improve service delivery to the people.

Some major projects include municipal and provincial broadband, HANIS and IFMS, massive infrastructure and transportation projects, FOSS, educational systems, e-gov portals, global deployment of VOIP, service delivery and governance, as well as the Who am I Online projects to improve service delivery.

According to BMI-T, government should lead by example and play the biggest role in implementing regulations and providing incentives for using less energy with Green IT initiatives.

Dos Santos said another area government should focus on is the use of Web 2.0 initiatives as it can dramatically improve service delivery to the country's citizens. She mentioned that it was used very successfully in the 2009 US elections, which incorporated social networking tools, such as Facebook and Twitter, as well as SMS's. She suggested that government needs to create new strategies in line with what the public wants and the packaging of information.

Another key focus should be on electronic self-service, an international trend to improve service delivery to citizens, thus enabling cost-savings and improved interaction with citizens, an area in which, she says, government is lacking.

Dos Santos recommended that government must keep abreast of IT and telecoms trends and developments and be aware of what citizens need, whilst focusing on skills development and training programmes within government.

By training staff, not only in ICT, but also in best practices concerning service delivery to citizens in South Africa, government will drastically improve citizens’ satisfaction levels and will also meet their needs more effectively, she concluded.