IE11 Not Supported

For optimal browsing, we recommend Chrome, Firefox or Safari browsers.

Market Outlook: Healthy IT Spend Still Driving Innovation

Although the economy, elections and a host of other factors can affect the health of the IT industry, one constant in both the private and public sectors is digital innovation. That was the overarching message Thursday as various speakers and panelists spoke at the Techwire State of Technology industry briefing in Sacramento.

Although the economy, elections and a host of other factors can affect the health of the IT industry, one constant in both the private and public sectors is digital innovation.  

That was the overarching message Thursday as various speakers and panelists spoke at the Techwire State of Technology industry briefing in Sacramento.  

Data drives that conclusion, and the opening speaker — Joseph Morris, vice president for research with the Center for Digital Government, came armed with plenty of it for his Market Briefing.  

Yes, pivotal California elections next year are causing some uncertainty in state government IT spending this year, he noted. 

"Elections slow procurements," he said. And with the California governorship up for grabs, state IT leaders tend to be cautious in drafting strategic plans.  

And RFPs are staying on the street longer than usual (28 days in California, compared with a national average of 21 days), Morris noted.  

Still, innovation is thriving in state IT and the spend is healthy, Morris said. 

"Right now, we're far enough away that you can still do business with the state," Morris said after the event, which was attended by about 200 people — mostly vendor representatives and state IT leaders.  

Some key takeaways from Morris’ briefing:  

— About 12 percent of the state budget is spent on IT.
— The state Department of Transportation (Caltrans) issues by far the largest number of RFPs/bids among state entities.
— Although cybersecurity is a rapidly growing concern nationwide, it commands only 1.5 to 2 percent of IT spending.  

His pro-innovation message was echoed by the state’s top two IT leaders, state CIO Amy Tong and her deputy, Chris Cruz, who both mentioned the CDT’s Innovation Lab. That project is overseen by Chief Digital Innovation Officer Scott Gregory, who was also a panelist at Thursday’s forum. 

The forum offered an overview of IT in various state realms — general government, the judicial arm, and the legislative front. (Techwire will write more about those topics in coming days and weeks.) 

Morris also noted what’s trending in California and across the nation, in addition to a drive for innovation and enhanced cybersecurity. Generally speaking, trending topics include blockchain, automation and artificial intelligence. 

Tong spoke about the “three pillars” that underpin the upcoming state’s strategic plan: Digitalization, IT security and workforce development. 

Cruz expanded on her point by noting that the key to the plan is measurability. Being able to quantify and qualify position innovation, he said, is a key to accountability. 

And vendors, take note: State leaders want to do business with you, but you have to do your homework. Tong advised reps to study the state’s needs and to tailor their pitch to that. She and Cruz cautioned, as they have in the past, that vendors should not show up with a general product and try to make it seem like a good fit for the state’s specific needs. 

“Make a strategic-level presentation rather than a product pitch,” said Tong. “We want vendors to jump in with both feet.” 

A separate panel discussion about the growing role of IT innovation in the state judiciary system yielded the nugget that the courts will be issuing a significant number of RFPs in coming weeks and months. That panel was moderated by Joe Panora, a Senior Fellow with the Center for Digital Government and a former longtime state IT leader. The panelists were Robert Oyung, CIO for the Judicial Council of California; and Andrea K. Wallin-Rohman, clerk administrator for Third Appellate District Court of Appeal.

Techwire will be writing more soon about the growing importance of IT in the courts  and the RFPs that will be flowing from that move. 

 

 

 

 

Dennis Noone is Executive Editor of Industry Insider. He is a career journalist, having worked at small-town newspapers and major metropolitan dailies including USA Today in Washington, D.C.