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ICT opportunities abound in Singapore's public sector: IDC study

Zafar Anjum | June 23, 2010
Government plans to invest US$720 million in about 350 new ICT procurement tenders for financial year 2010

SINGAPORE, 23 JUNE 2010 The overall ICT spending in Singapore is expected to increase year-over-year (YoY) in financial year 2010 (FY10), according to a projection by analyst company IDC.

IDC's forecast follows Infocomm Development Authority of Singapore's (IDA) recent announcement that it plans to invest US$720 million (S$1.1 billion) in about 350 new ICT procurement tenders for FY10.

Wide dispersion of smaller value contracts expected

Providing detailed insights in the study, Opportunities Abound: Analysis of Singapore's US$720 Million Public Sector FY10 ICT Procurement Plans', IDC Government Insights says more than 50 per cent of the projected infocomm tenders in FY10 will be under S$500,000 (US$360,777). This allows for a myriad of business opportunities for participating vendors of different sizes, with a wide dispersion of smaller value contracts expected, says Gerald Wang, senior market analyst at IDC Government Insights Asia Pacific.  

IDC also says as the public sector continues its governmental computerisation implementations with the iGov2015 masterplan, the next few years will be a crucial time for government IT.

IDC sees Singapore's current public sector ICT procurement landscape in the following prominent ways:

•    Although the bulk of Singapore's government ICT procurement activities remain decentralised across agencies, they have to strictly adhere to central procurement guidelines issued by the Ministry of Finance (MOF).

•    The IDA will be carrying out centralised bulk purchases for common ICT goods and services, and individual government agencies can purchase their ICT needs from these contracts.

•    Emerging technologies such as cloud computing, operations sustainability and new ways of transacting information through new media and Web 2.0 initiatives will be the focus in upcoming government tenders.

Overall, the Singapore government is consciously investing in projects such as public services revamp, systems consolidation, and other sustainable business solutions to better manage costs over the long term, says Gerald. As such, proposals that will allow government agencies to reduce the high upfront capital expenditures and to manage operational expenses will be the most well-received.


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