GOVERNMENT EXPECTS TO AWARD $700 MILLION IN IT CONTRACTS FOR FY2004



Link to Industry Briefing website: http://www.egov.gov.sg/industry_briefing.htm

The economic growth may have slowed, but that has not stopped the Singapore Government in awarding IT contracts. IT has always been considered a key segment in fueling the growth of Singapore's knowledge-based economy.

The infocomm industry can look forward to continued IT business opportunities from the Public Sector this financial year. The Infocomm Development Authority of Singpoare (IDA) estimates that about S$700 million worth of IT contracts will be awarded by public sector agencies in FY 2004 (1 April 2004 - 31 March 2005).

The figures were recently revealed by Mrs. Tan Ching Yee, IDA's Chief Executive Officer, at the first Industry Briefing for Business Opportunities for IT in the Public Sector last month.

"The public sector continues to be an important trend-setter in IT procurement," said Mrs. Tan,

"A combination of long-term planning and judicious investment in IT has enabled the public sector to improve efficiency and effectiveness, upgraded service quality, and deliver new services previously unavailable. Despite the slower economic growth over the last 2 years, the value of IT contracts awarded each year remains at about the same level."

Mrs. Tan added that the proportion of IT procurement value for 2004 to be spent on hardware, software and services remains the same as the last two years. About 70% of this year's budget will be for hardware and software products such as new PCs, networks and software licenses. The remaining 30% will go towards services such as consultancy, software development and systems integration, she added.

The briefing was attended by 1,000 industry representatives. Major IT buyers within the Government, viz, the Ministries of Defence, Education and Home Affairs and the Government Chief Information Office (GCIO) of the IDA, shared government-wide IT procurement plans. Together, these accounted for more than 80% of the total contracts expected to be awarded in FY2004.

Some key areas of focus for the Government include central Government IT infrastructure, infocomm security, and business continuity planning. The Ministry of Defence shared that the key areas for FY2004 would be in building a knowledge enterprise, enhancing ICT management and security, as well as increasing awareness, access and the e-service experience. Key procurement areas for the Ministry of Home Affairs will centre on projects such as the network infrastructure for the Singapore Civil Defence Force and the Prisons Technology Masterplan rollout.

Giving a note of encouragement to local IT companies who were present, Mrs. Tan said: "Companies who win contracts through an open and competitive process are better able to build capabilities which they can then leverage for further growth beyond Singapore,"

Event proceedings and other materials can be found on the Singapore e-Government website at http://www.egov.gov.sg/industry_briefing.htm.