Trends Report

There's Gold For Vendors In Stimulus Packages

But It Will Take Mining To Get At The Opportunities That Exist

July 7th, 2009
With contributors:
Chétina Muteba , Ellen Daley

Summary

As economies around the world slid into recession, governments in the US and many other countries rushed out economic stimulus programs. Many programs have funds explicitly set aside for technology goods and services; others provide implicit opportunities for IT vendors to sell the technology that accompanies research projects or building upgrades. Our analysis shows that there's about $62 billion in revenue opportunity for IT vendors in the stimulus programs over the next two years, with 22% in Canada, Germany, and Japan, 28% in China, and 45% in the US. However, that's not a lot in a global IT market of $1.6 trillion. And, much of the money will flow through complex channels from central government to local governments and the private sector, which will ultimately be the IT buyers. Capturing these opportunities will require knowledge of which governments are spending on which projects, how the money is flowing, and what it will be spent on. We provide that detail in this report. But success also requires knowing how to reach and influence the end recipients of the funding. We offer some examples and best practices here as well.

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