The need to digitize companies does not only affect private entities. The public administration faces a great challenge when it comes to transforming itself to improve public services. A demand that is noticeable at the public IT business level that is growing. An opportunity for anyone who provides technological services.
At a global level, Gartner forecasts that the volume of revenue derived from public administration will grow by 8% in 2023. Translated into business, we are talking about almost 590,000 million euros that will be allocated, in large part, to application and architecture modernization projects legacy they need an update.
Software and services, the great allies of public administration
Specifically, and divided by technological segments, software will be the great ally of the public administration this year. With an expected growth of 13.5%, the software will take 161,894 million dollars. Above, only technological services that will approach 192,000 million dollars, 8.9% more than the previous year. Despite the fact that last year they fell, internal services will also rise by 3.3%. The reason for this rise is justified by the lack of technological professionals, which drives the need for advice and support from third parties.
The big setback will be for the devices that will reduce their demand by 4.6% during this 2023. The drop is less than that of the previous year, but it is in line with the rest of the demand in the private sector.
And in Spain, much more
If the global data is good, the local ones are too. Despite all the adverse circumstances in terms of inflation, electoral processes and others, the technology award business in Spain has continued at a good pace.
In Spain, the IT business in public administration has increased by 42% in 2023
According to data from ICT Adjudications, the public administration has increased its business by 42% in these first 5 months of 2023 compared to the data for the same period of 2022. If last year in this interval 2,141 million euros were reached, in 2023 it has reached 3,057 million euros.
So far this year, the great winner in demand by the Spanish public administration has been outsourcing services. These have taken more than 1,047 million euros. In line with the global data, software has been the next most requested category with an amount in awards of 440 million euros.
