NSW Government spending on ICT escaped drastic slashing despite an unexpected budget surplus, according to an analyst firm.
NSW’s ICT capital expenditure will be allocated about $600 million, in line with what was offered last year, Intermedium director, Judy Hurditch, said.
The Government's commitment comes despite its People First initiative to cut down procurement costs, which is kicking into gear.
The state budget also returned a $101m surplus instead of the $990m deficit predicted last year.
“We are looking at first indications and more details will come, but there appears to be fresh ICT projects of some substance that are coming forward to receive funding from this year’s budget,” Hurditch said. “There were some online and information systems, some of which are across agencies.
“There’s nearly always systems integration requirements which may go to the market. There’s clearly going to be a need for software and hardware components as parts of the solutions.”
But Hurditch advised companies not to expect any big splurges in IT spending either.
According to the NSW Budget papers, the whole-of-government expenditure review into ICT aimed for a 5 per cent savings target in 2010-2011 and 10 per cent the year after.
“The first phase of the review has been completed,” it stated. “A total of $79m per annum in savings has been achieved in the first phase.
“The second phase of the review has commenced and…[is] targeting savings of an additional $158m per annum. By September 2010, government agencies will have approved plans to achieve the additional 10 per cent ICT savings.”