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Government plans SME IT investment

The government has unveiled plans to increase its level of IT investment in small to medium-sized enterprises (SMEs).

A policy objective of placing 25 per cent of government IT external expenditure with SME suppliers could provide a timely boost for many tech firms still trying to overcome the impact of the recession.

With the emphasis now on reducing the budget deficit, the Con-Lib coalition is seeking increasingly innovative ways to stimulate growth and help restore the economy to stability.

SMEs form a crucial part of that economy, with 51 per cent of the private sector workforce working for such firms.

In a white paper on the issue, David Chan of City University London's Centre for Information Leadership, and Martin Rice and John Riley of Erudine, commented: "Achieving the scale of savings demanded by government requires moving from the status quo and deploying innovative ideas, products and services.

"While government appreciates that SMEs are best placed to provide that innovation, the barriers to using them are huge."

Posted by Adam MillerADNFCR-2165-ID-800031439-ADNFCR