Taking what was surely the toughest spot at Brand v Demand, Jan Duffy of IDC, shared her research and predictions for the next 12 months with the audience. IDCs position as one of the worlds leading market research and analysis firms specialising in I.T. and telecoms, means Jan is perfectly placed to deliver some really powerful insights into what the near future holds for businesses selling to the public sector.

Jan started by stating that 2010 promises to be a year of tough choices for public sector executives. Theyre facing a tricky balancing act and will have to make difficult choices on what needs to be done in the face of shrinking expenditure. Is it wiser to accelerate government investment in government modernisation, for example? Should they reduce capital expenditure through increased use of shared services or should it be more outsourcing or even across the board budget cuts? How do they balance local, regional and national needs? All of these questions and more will need decisive answers.

Jan explained that there are three major challenges facing the public sector right now:

• Paying off the public debt
• Keeping the wheels of public administration turning
• Rightsizing public administration.

Jan Duffy examined these topics in a little more detail.

When it comes to paying off the public debt, one thing is abundantly clear; the hole cannot get any deeper. Government spending comprises three main blocks staff, benefits and purchased goods and services, all of which will feel the pinch. There will be enormous pressure for the public sector to reduce spending, increase revenue and improve stewardship of public assets. It seems likely that funding cuts will dictate the public service agenda. There will,
of course, be increased attention on how money is being spent at all levels of government.

Keeping the wheels turning is a given the show must go on. But survival depends on efficiency savings. Assuming there is no anticipated increase in revenue, the focus will be on reducing back office operational costs. Other initiatives may include selling unnecessary assets, improving property management and consolidating services across various levels and departments.

Much effort will be focused on immediate improvements to existing public sector systems and processes with minimal additional investment. There will be increased recognition of how telecommunications and the internet are critical to the economic wellbeing of the country in the same way that roads and the railways are.

According to Duffy, the buzzword for 2010 will be rightsizing, underpinned by government transformation or modernisation. Searching questions will be posed such as: How big does government really need to be to deliver required services? Is the balance and the coordination between central, regional and local government correct? And they will have to be answered.

Establishing priorities to guide rightsizing efforts will rise to the top of the administrative policy
agenda. It will be difficult to make the changes based on existing transformation plans and agendas, the change in focus will be subtle, but it is certain to have a big impact.

Although Jans field of expertise is the supply of I.T. and Telecoms to the private sector, the insights and trends that she highlighted are just as relevant to any marketers who are working with the public sector over the coming 12 months and her expert analysis was warmly received by the Brand v Demand audience.

Summary of IDC government insights 2010 EMEA predictions

Paying off the public debt

• funding cuts will dictate the public service agenda
• increased attention on how money is being spent

Keeping the public administration wheels turning

• much effort will be focused on immediate improvements to existing public sector systems and processes with minimal additional investment
• increased recognition of telecommunications and the internet as critical to the economy and to service delivery will sustain investment

Rightsizing public administration

• the word for 2010 will be rightsizing underpinned by government transformation or modernization
• establishing priorities to guide rightsizing efforts will rise to the top of the administrative policy agenda

Paving the way to a better future

• 2010 will see continued investigation of and experimentation with cloud computing and the use of social media
• increased consideration will be given to new ideas about what really constitutes a public service and new ways of designing and delivering cross-functional services
• socio-economic pressures will compel governments to consider service delivery options that were previously thought to be too difficult, too radical, too different
• governments will be required to change the way they manage themselves and public money performance management will rise in significance

source: idc government insights emea government sector 2010 top 10 Predictions http://www.idc-gi.com/getdoc.jsp?containerid=giPP01s (doc #giPP01s/ feb 2010), by jan a. duffy http://www.idc-gi.com/gi/ getdoc.jsp?containerid=Prf003127 , silvia Piai http://www.idc-gi.com/ gi/getdoc.jsp?containerid=Prf002715. (http://www.idc-gi.com/getdoc.jsp?containerid=giPP01s)