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State and Local Social Services Technology Spending to Reach $9.2 Billion By 2013

Child welfare systems and lack of architectural coherence will drive spending.

Reston, VA (Vocus/PRWEB ) April 17, 2008 - Ongoing modernization, combined with the lack of architectural planning, will drive $2.5 billion of growth in the U.S. state and local health care information technology (IT) vertical, according to a newly released report by INPUT, the authority on government business. Annual spending on Health Care IT will reach $9.2 billion by 2013—led by efforts to develop federally-certifiable state automated child welfare information systems (SACWIS), which are the newest addition to the social services IT portfolio. Annual SACWIS investments will reach $2.5 billion in 2013.

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More than 40 states are still developing certifiable child welfare systems
"More than 40 states are still developing certifiable child welfare systems," said Chris Dixon, manager, state and local industry analysis for INPUT. "Given the lack of architectural oversight in this area—which should be comparable to what we see in health IT or criminal justice—theres no reason to believe these SACWIS systems wont end up being every bit as expensive as child support enforcement systems were before them. I wish we could point to some fundamental innovations as the drivers here, but thats just not the case."

Another $1.0 billion in growth will be provided by continued rounds of improvement to child support enforcement systems ($600 million) and food stamp systems ($400 million). Immediate demand will be for such long-standing needs as automating the countless paper-based processes to feed into existing systems. Another high demand area will be for bringing all varieties of social services systems to the web to provide anytime/anywhere access for case managers and program participants. This will also support mobility for case managers and facilities inspectors with duties in the field.

"After more than a decade of ‘welfare-to-work, Congress continues to embed system requirements in legislation," said Dixon. "This has forced states to approach social services systems as big, dumb processing engines, not as strategic tools that support outcomes-based performance measures. The vendors are happy to build whatever sort of convoluted system the law dictates, but they have a lot more to offer. If the next President and Congress dont wake up to this, well have to wait another decade for the Baby Boomers to force a transformation through aging services."

Produced by INPUT as part of its State and Local IT Industry Analysis program, the State and Local Social Services IT Industry Report, 2008-2013 report provides a comprehensive analysis of the U.S. state and local government market for IT within the social services and employment verticals. The social services IT market encompasses the technology that supports federally mandated and funded social services programs, including Adoption Assistance, the Child Care and Development Fund (CCDF), Child Support Enforcement (CSE), the Food Stamp Program, Foster Care, Temporary Assistance for Needy Families (TANF), and Unemployment Insurance (UI).

INPUTs State and Local Social Services IT Industry Report, 2008-2013 industry report is available on INPUTs website at http://SLSS08.input.com.

EDITORS NOTE: For access to the full report or an interview with the report author, please contact Helena Brito at hbrito @ input.com or 703-707-4161.

About INPUT
INPUT is the authority on government business. Established in 1974, INPUT helps companies develop federal, state, and local government business and helps public sector organizations achieve their objectives. Over 1,300 members, including small specialized companies, new entrants to the public sector, and the largest government contractors and agencies, rely on INPUT for the latest and most comprehensive procurement and market information, consulting, powerful sales management tools, and educational and networking events. For more information about INPUT, visit www.input.com or call 703-707-3500.

Proper use of name is INPUT

Media Contact:
Helena Brito
hbrito @ input.com
703-707-4161

11720 Plaza America Drive, Suite 1200
Reston, VA 20191
Tel: (703) 707-3500
Fax:(703) 707-6201
www.input.com

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Helena Brito
INPUT
703-707-4161
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