Updated: state sector ICT spend totals $1.9 billion in 2008

State sector IT spend increases 12% in two years.

Total state sector ICT spending totalled $1.9 billion for the year year ended June 2008 according to the State Services Commission's 2008 Government Use of ICT Survey.

for central government, that is an apparent increase of 12% since the previous survey in 2006. Central government (comprising core departments plus crown research institutes) spending rose from $1.31 billion to 1.47 billion.

State sector CIOs perceive that they spent a relatively high proportion of total ICT expenditure (median 79%) on keeping the business running as opposed to transforming it.

54% of organisations probably do not reuse information that a person has already provided, the survey says.

Further, significant proportions of responding organisations were independently investing in the same types of capital investment projects and/or doing business with the same external suppliers. Nevertheless, just 22% of organisations were confident when undertaking a procurement that they knew which other organisations were undertaking similar exercises.

The survey shows spending intentions are heavily weighted towards infrastructure and hardware and software upgrades (see chart below).

Plans for ICT investment

Eighty-three percent of organisations had an information systems strategic plan and 73% of organisations had key information about investments collected together in a single place.

Fewer were benchmarking their ICT practices, with just 26% of organisations having undertaken a capability maturity assessment of any kind within the previous six months.

"The information from the survey will assist in facilitating better coordination of ICT investments across the state sector, and provide insight into opportunities for improving productivity gains in individual organisations and the sector as a whole," says said Laurence Millar, deputy commissioner, Information and Communication Technologies.


"The survey report highlights some issues where more proactive awareness of, and coordination with, other state sector agencies could drive improved ICT efficiencies. There are also further opportunities for improvement in both the quality and value of ICT procurement and investment, both for individual agencies and across the State sector. The information collected in this survey will also help identify whether the State Services are receiving value for money from their ICT investment." 


The 2008 survey distributed to 163 state sector organisations — 144 central government organisations and 19 state-owned organisations. The overall response rate was 64%.

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