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Public investment in high tech up by 2.7 percent

According to the German Association of Information Management, Telecommunications and New Media (BITKOM), it is estimated that in the year 2009 federal, regional and local authorities combined will invest 18.1 billion Euros in information technology and telecommunications. This would be an increase by 2.7% as compared to the current year 2008. These predictions are based on a study by the TechConsult market research institute. According to estimates by BITKOM, the amount of money necessary to provide public administration, health systems, schools and police stations with state of the art equipment alone amounts to 8 billion Euros.

Prof. August-Wilhelm Scheer, who is BITKOM president, said that the state, citizens and high-tech industry are going to benefit from this development given that investment would improve the efficiency of administrative processes and therefore the services provided to citizens. At the same time these investments will fill the order books of the IT and communications industry with important innovative orders.

According to BITKOM, in the year 2009 federal, regional and local authorities are expected to account for the lion share of demand for IT services. These include IT consulting as well as outsourcing of IT systems. Demand for such services currently amounts to 7.4 billion Euros. For the year 2010 it is expected that demand is going to grow by another 5.9% to 7.9 billion Euros. Software (4 billion Euros) as well as hardware such as computers (2.3 billion Euros) round off the top 3 of most sought-after high-tech products in the year 2009. GERMAN