Bangalore: Business process outsourcing and cloud-based services are predicted to be the key trends that will drive efficiency in government IT for 2011. As the government agencies focus more on their need to cut costs, outsourcing and cloud-based approach to service delivery will gain more prominence this year, reveals a new report by the analyst firm Ovum.
"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," says Jessica Hawkins, Ovum analyst and author of the report.
The author further states that those economies most affected by serious deficits will direct their attention to outsourcing, particularly in back-office processes, to cut costs.
The year 2011 will see increased number of takers for BPO, shared services and on-demand access than ever before. However, she opined that the 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. Government agencies will turn to their IT vendors to guide them through the new technologies that can help them achieve this and vendors should be ready to do this.
The technology analyst also predicted the emergence of a new approach to procurement by government agencies. The agencies will be keen to ensure there is more visibility and accountability of how taxpayers money is spent which will lead to new ways of procuring services in 2011.