Government investment in IT will reach its peak value before 2008

The government informatization construction is China's biggest IT market.Its total investment account for more than 20% of this industry in China.CCW Research shows in 2004 the government total investment in IT was 40.8billion RMB, which increased 18.3% compared with the same time last year.

2003－2008 is a key period for integration of government informatization and business,the government investment in IT will keep a high increasing trend.CCW Research predicts that in this 5 years,the compound increasing rate of China governmet investment in IT will reach 15.2%. Because of the 11th Five Year's Program and the key period of digital Olympics construction,it is predicted that the investment increasing rate will reach 19.2% in 2006 and after 2007 it will move into a stable stage. 2006 and 2007 will be the main part for e-government construction. If a unified muiti-level government network has not been completed yet before 2008,to some extent,China's e-government will hardly make the expected achivements.

The government informatization moves into conformity stage

Although the government informatization started late,it is developing quickly these years because of some prior policies. Along with the implementing year of e-government, the government has said goog-bye to the stage of stand-alone application and local information application: only 8.2% of China's government are still in the stage of stand-alone application and local information application; 53.5% od governmentare in the stage of conformity; 38.3% has started to intergrated with IT and the relative government flow reconstruction. All these show that the future government informatization will move into a new stage:conformity stage.

On the whole，in recent years the emphases of the government informatization is still e-government business system, e-government intranet, OA system and e-government outside network . What is noticeable is the construction and improvement of e-government network will be the focus again because the government informatization is still more important than less.Because of the government increasing focus on information security,emergency systems and key websites, CCW Research predicts in 2005,these three applications will keep an investment increasing rate which is higher than 20% together with the e--government business system.　　　　　　　

From：China Sofeware Net