Local Government: The Neighborly Opportunity

The late Speaker of the House Thomas "Tip" O'Neill is fondly remembered for his political mantra: "All politics is local." It was a hard lesson he picked up as a young candidate when one of his faithful constituents didn't vote for him. When he asked why, she responded, "Because you didn't ask." Thereafter, Tip never took an election for granted and always personally asked his neighbors for their vote.

There's a lesson here for small public-sector solution providers. You'll sometimes hear the big integrators' names involved in Main Street projects, but the EDSs and Northrop Grummans of the public-sector channel are more interested in the big-dollar contracts. Likewise, when it comes to infrastructure and software deals, local governments would rather deal with their neighbors--the folks in their area.

Our State of the Government Market research stats reveal there's ample opportunity on the low end of the public-sector channel:

Need proof of what's on government's mind? Go to your local council meeting. Their discussions are dominated by two things: revenue and cost containment. All local governments want is to provide a certain level of service, or what they call "nondiscretionary spending." On the average, that accounts for 75 percent to 90 percent of all local-government budgets. They have fixed revenue sources, and raising taxes isn't always an option. The only way local governments can squeeze more out of their coffers is through greater efficiency; technology can help achieve that.

Local solution providers can use their expertise to design and deploy systems that will build proven business processes, improve productivity and reduce costs, and provide a better user experience. Local governments are willing to make an outlay today if, and only if, they can get a strong return tomorrow.

Local government solution providers are in the best position to deliver IT systems and services precisely because they are, in Tip's words, local. Area governments want to deal with someone they can trust, someone they can call on in an emergency, and who shares their values and concerns. On the local level, solution providers aren't just trusted advisers; they're neighbors.