Traditionally, state and local governments are risk-adverse organizations. Public-sector entities often shun bleeding-edge technology in favor of proven, safe solutions.
The increasing emphasis on performance-based acquisitions and other results-oriented initiatives has sparked a need for cultural change in government and industry.
The coming year represents an important transition period for state and local governments. There appears to be a brightening fiscal picture.
Commercial spending for research and development has increased substantially in recent years. For every federal dollar invested in this area, business now invests about $2. As a result, the private sector now plays an increasingly important role in developing new technologies and influencing acquisitions for some of the most critical federal programs.
The state and local government market is large and complex. Companies can best get a handle on this market by targeting these five major segments: administration and finance, tax and revenue, transportation, health and human services, and public safety and criminal justice.
Leading corporations have adopted strategic sourcing and enterprise spend-management initiatives to improve efficiency and enhance the bottom line. Some government agencies are watching and preparing to follow suit.
Despite a brightening fiscal environment, state and local government organizations still struggle with funding for certain information technology projects. Over the past three years, budget shortfalls have forced these governments to find and expand innovative alternatives to the traditional appropriations and funding processes.
Enterprisewide solutions can optimize results and leverage available funding for federal agencies. But sometimes they also create potential for organizational conflicts of interest or related appearance issues.
Dear Gov.-Elect Arnold Schwarzenegger: Congratulations on your victory. With the California gubernatorial recall election over, the hard part of governing now begins.