It’s a good time to be a tech company. State and local governments, though admittedly a bit behind in their modernization efforts, are moving full speed ahead. IT spending climbed from $97 billion in 2015 to over $107 billion in 2019, and this upward trend is expected for the unforeseeable future.
We know that we’ve seen an uptick in tech-related bids in our Periscope S2G database and you should too. (Assuming your searches are set up correctly, that is.)
Now, those in the cybersecurity business are going to see the greatest demand for their service and solution right now since this is a priority of every government agency. And nearly half (46%) of CIOs surveyed by the Center for Digital Government say 50 percent or more of their IT environment can go to the cloud. Given that "only 8 to 9 percent of it is there today,” you can imagine that there will be a growing number of solicitations for cloud-based services and solutions as well.
However, IT spending by states, cities and counties varies a bit from there, as you can see in this chart. Of course, mobile devices and applications will likely remain in the top 10 spend categories for quite some time, as will citizen engagement solutions. Governments want to improve the quality of services they provide to their communities and that starts with digitalization and workforce mobilization, both of which facilitate better communications between employees and residents.
Who’s Spending the Most?
If you’re trying to build your public sector sales pipeline, you might want to focus on these 10 states, cities and counties first, as research conducted by the GovTech Navigator team indicates that they spent the most on IT in 2019 – a trend that will likely rollover into this year. However, nearly every government agency at every level is buying technology in some capacity.
For example, video surveillance and analytics didn’t make the top 10 GovTech list on a holistic scale, yet they are seen as some of the top IT opportunities by public education entities given the current emphasis on protecting student data and privacy. And public safety agencies are hyper focused on FirstNet and body camera rollouts, both of which require network infrastructure upgrades and real-time data sharing capabilities – which require very secure and reliable mobile computing solutions.
In other words, there is an opportunity for every tech sector company to increase revenue from the public sector this year. The hard part for most is parsing through the millions of solicitations posted by the more than 90,000 state and local government agencies in the U.S. (Did you know there are more than 38,000 special districts?)
That is why automated bid search and notification services such as Periscope S2G are so valuable to every company, regardless of size or sales goals. Winning just one government contract in a 12-month period can pay for an annual subscription, and the time and money saved by not having to commit labor resources to searching for bid opportunities is exponentially more for most companies. This ROI calculator can give you the proof you need.
Plus, the beauty of Periscope S2G is that you have State, Regional and National Pro subscriptions options. So, if you only want to focus your efforts on the top 10 states spending the most on IT per GovTech Navigator, you can. Efficiency and agility are key when pursuing government contracts, and services like Periscope S2G help you weed out the irrelevant solicitations and find only those that are actually winnable – including some that traditional (limited) keyword search options miss. You can learn more about that here.
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