Cloud and BPO key government IT trends for 2011

Cloud and BPO key government IT trends for 2011

The cloud and business process outsourcing (BPO) will be two of the key trends aimed at driving efficiencies in government IT in 2011, according to Ovum.

In a new report* the independent technology analyst states that government agencies will become more open to a cloud-based approach to service delivery and outsourcing in the coming year, as the need to cut costs comes to the fore.

Jessica Hawkins, Ovum analyst and author of the report, said: “We expect to see consumption-based and shared delivery models gaining momentum in 2011, as agencies become more open to the efficiencies that a cloud-based approach can offer. However issues of privacy and security will mean some governments will remain cautious.

“Alongside this, for those economies most severely affected by the crippling deficits we expect to see an increase in outsourcing, particularly in back-office processes, in a bid to find cost savings and fast.”

According to Hawkins, the door to BPO, shared services and on-demand access will be more open in 2011 than ever before. She said: “However, governments should push beyond knee-jerk cost-cutting measures and adopt a long-term vision of how fundamental changes to the way they deliver services will bring efficiency.

“Many will look to their IT vendor to guide them through the new technologies that can help them achieve this and vendors should be ready to do this.”

As well as new service delivery models emerging in 2011, Hawkins also believes there will be a new approach to procurement by government agencies. She said: “With every penny counting and governments keen to ensure there’s more visibility and accountability of how taxpayers’ money is spent, in 2011 agencies will look at new ways of procuring services. In addition there will be changes in how contracts look – in some cases we will see consolidation.”



*Government Technology

To arrange an interview or for further details regarding this release please contact Kelly Livesey in the Ovum press office on (0)161 238 4081, or email


Ovum provides clients with independent and objective analysis that enables them to make better business and technology decisions. Our research draws upon over 400,000 interviews a year with business and technology, telecoms and sourcing decision-makers, giving Ovum and our clients unparalleled insight not only into business requirements but also the technology that organisations must support. Ovum is part of the Informa Group.