Presentation of Kables report: UK regional government ICT: market profile and forecasts to 200910

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Presentation of Kables reportUK regional
government ICT market profile and forecasts to
2009-10
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Regional market definition

• Devolved administrations of Wales, Scotland and
  Northern Ireland, divided into verticals
• Central government
• Local
• Health
• Education
• Criminal Justice
• Transport
• But not Defence reserved for UK administration

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UK vs regional organisations
These organisations feed into the regional view
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Devolved issues Scotland and Wales

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Wealth comparison across UK regions
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Overview of the UK regional government report

• Research methodology (98 interviews telephone
  with senior IT directors / managers)
• Scope (Scotland, Wales, Northern Ireland)
• Scope (6 verticals, forecast to 2009/10,
  breakdown by product, vertical, country)
• ICT strategy
• ICT initiatives
• ICT trends and opportunities

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Public sector ICT market 2005/06
The devolved PS ICT market is worth 11 of the
total UK market
Devolved gov - 1.7bn
UK - 14.9bn
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Devolved market size by region

• UK public sector
• Total ICT spend in UK 14.9bn (2005/06)
• Growing to 19.4bn (2009/10)
• Devolved government overview
• Total ICT spend 1.7bn (2005/06)
• Growing to over 2.0bn (2009/10)

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Key market sizes

• Scotland
• Public sector ICT market is worth 899m in 05/06
• Growth estimated at 3.96 CAGR to 09/10 market
  size 1.05bn
• Wales
• Public sector ICT market worth 418m in 05/06
• Growth estimated at 4.74 CAGR to 09/10 market
  size 503m
• Northern Ireland
• Public sector ICT market worth 352m in 05/06
• Growth estimated at 2.93 CAGR to 09/10 market
  size 395m

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Market sizing by product - 1.7bn (2005/06)
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Market sizing by vertical - 1.7bn (2005/06)
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Regional growth rates by vertical to 2009/10
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Regional vs English central local

• Key differences between regional and
  central/local government
• Policy
• Timing
• Funding
• Key priorities of regional government
• Citizen centricity
• Value for money
• Efficiency savings
• Key activities to date
• Moving towards shared services
• Broadband connectivity
• Health/schools

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Overview of verticals
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Scotland National and Local Government

• Scottish Executive
• Efficiency and Reform Fund (ex MGF and EGF)
• Allocations of 13.76 / 25.48 / 26.27m (05/06
  07/08)
• E-planning system 12m announced in Sep 06
• 32 local councils
• E-government spend tailing off towards the end of
  forecast

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Scotland Education

• SEED
• Spending per capita higher than in England
• Working closely with the 32 local councils
• Rolling out EDRM in 2006
• NGfL is key
• RM contract to create Glow (ex Scottish Schools
  Digital Network)

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Scotland Healthcare

• Scottish NHS
• Spending per capita higher than in England
• Emergency e-patient records to be rolled out
• 100m allocated to modernise health technologies
  2006-2009
• ePharmacy
• Single record underway, with extensions to the
  ambulance service

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Scotland Criminal Justice / Transport

• Criminal Justice
• Scottish Police Information Strategy (SPIS)
• Scottish Intelligence Database (SID)
• Plans to link ANPR to ViSOR
• Transport
• Plans for congestion charging schemes

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Wales National Government

• Welsh Assembly
• Agenda for Modernising Services
• Welsh Procurement Initiative (WPI) targets 90m
  annual savings on about 3bn spend (some 40 of
  WA budget)
• Making / Delivering Connections publications set
  the scene
• Merlin 10 year 220m contract with SBS to
  provide ICT and business change services for the
  National Assembly and all departments (with 80m
  dedicated to IT)
• ICT spend under Merlin 7.2m 04/05, 8.7m 05/06
• 5,971 users, 10.6m capital cost of migrating to
  XP/Server 2003
• Telecomms 2.2m in 04/05, 2.4m in 05/06 plus 1m
  and 0.7m non Merlin telecomms

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Wales Local Government

• 26 councils
• E-government agenda
• Localism and emphasis of local culture
• Often at the cutting edge e.g. BT 21CN in
  Cardiff
• Keen to try new projects

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Wales Education

• Run as part of England and Wales
• Investment in NGfL Cymru, managed by Curriculum
  Data Wales PPP (incl. local authorities, BT Wales
  et al)

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Wales Healthcare

• NHS Wales
• Informing Healthcare 10 year strategy, with
  90m for use of ICT in provision of patient care
• Number of smaller projects such as diabetes,
  information sharing etc

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Wales Criminal Justice / Transport

• Transport
• Intelligent Transport Systems (ITS)
• Vehicle infrastructure integration
• Other projects to solve congestion issues

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Northern Ireland

• Merged NI eGov unit and Business Development
  Services to create Delivery and Innovation
  Division (DID)
• DID overlooks the HR/payroll contract
• Electronic documents and records management
  (EDRM) for NICS staff
• Creating a shared services centre for corporate
  functions, Accounting Services Programme (with
  the help of BT and Accenture)
• Focus on digital inclusion

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Northern Ireland (continued)

• Suspended assembly, run from Northern Ireland
  Office
• Strategy
• OnlineNI, NI Civil Service, Digital Inclusion and
  Multi-channel contact centres
• 95m health programme launched in 2005, 10 year
  strategy to provide electronic care records
• As opposed to rest of UK, NI has integrated
  health and social services strategy
• C2K (ex Classroom 2000) Northgate contract to
  provide ICT to 330k students and 20k teachers

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Opportunities and investment priorities

• Most popular initiatives for 2006/07

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Opportunities and investment priorities

• Most popular initiatives for 2006/07

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Opportunities and investment priorities

• Most popular technologies for 2006/07

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Opportunities and investment priorities

• Most popular initiatives for 2006/07

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Opportunities and investment priorities

• ICT investment priorities

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Top opportunities by region
Wales 1 Document management 2 Security/authenticat
ion 3 Wireless networks 4 Back office
integration 5 Mobile working technologies

• Northern Ireland
• 1 Document management
• 2 Security/authentication
• 3 Back office integration
• 4 Videoconferencing
• 5 CRM

Scotland 1 Document management 2
Security/authentication 3 Open source 4 Wireless
networks 5 Back office integration
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Procurement channels
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Shared services

• NI single shared ICT service to support 11
  departments, 185m Fujitsu Services contract
• Scotland eProcurement Scotland
• Wales recent merger of 3 departments (WTB, WDA
  and ELWa)

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Shared services examples (Scotland)
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Outsourcing

• Worth some 90m per annum in the regions
• Example NAW 10 year 200m IT infrastructure and
  business change contract
• Example NICS e-HR to support 28,000 staff
  across all departments
• An estimated 42 of functions are outsourced as
  opposed to managed in-house

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Outsourcing

• Two largest areas application management and
  desktop/IT support

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Thank you