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As Federal Budgets Shrink, State, Local IT Spending On The Rise

By Jennifer Hagendorf Follett
June 07, 2012    4:18 PM ET

Page 2 of 2

Hot technology opportunities for solution providers in the state and local government space include big data and analytics as well as cloud and mobility, but only in cases where they are targeting the right solution to the right agency, Gartner's Arcaris said.

For example, big data and analytics come into play for health, human services and tax agencies, which are looking for ways to combat fraud, waste and abuse. Public safety agencies will have budget to spend on mobile data solutions and other technology as they work to implement next-generation 911 services, computer-aided dispatch and records management systems.

Government agencies will also be more apt to roll out solutions that generate revenue or decrease the cost of a business process, she said. Putting mobile devices into the hands of meter maids to upload tickets could speed the collection of fines, while providing analytics to state Medicaid agencies could uncover long-term cost savings as they examine disease control.

The concept of shared services is of particular interest to state and local government agencies, as they aim to turn their existing proficiencies into a profit center by providing backend functions or services to other agencies.

But Signature’s Zeper sees conflict on the shared services horizon.

"Every agency thinks they’re going to be the services provider; they all have visions of becoming a profit center," Zeper said. "We may have a glut of overbuilt infrastructure."

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