Government projected to spend more than $3 billion on ICT in FY23

24 MAY 2023

Government projected to spend $3.3 billion on ICT in FY23

SINGAPORE, 24 MAY 2023

$1 billion for applications developed on the cloud
Co-developed projects with industry will account for almost half (45 per cent) of projected spending, up from a third in FY22
New bulk tenders to further aggregate demand for ICT services
Sustainability criteria to be incorporated into evaluation process starting in 2H 2023

The Government will spend an estimated $3.3 billion on info-communications technology (ICT) this year^[1], building on past years’ investments to modernise its digital infrastructure and develop better services for citizens, businesses, and public officers. In total, the Government has invested about $16 billion in ICT over the last five years.

^[1] Projected ICT spending was $3.8 billion in both FY22 and FY21. Past efforts to aggregate demand for ICT services through bulk tenders, and to modernise the Government’s backend ICT infrastructure through the cloud, have resulted in cost savings.

More systems to be developed on Government Commercial Cloud

More than 30 per cent ($1 billion) of the Government’s projected ICT spending for FY23 are for applications developed on the Government Commercial Cloud (GCC). Since the announcement of the “Cloud First” Strategy in October 2018, about 66 per cent of eligible government systems have been migrated to the Government Commercial Cloud (GCC), putting the goal of 70 per cent by end 2023 within reach.

More co-development of application projects

The value of projects co-developed with industry is expected to increase to about 45 per cent ($1.49 billion) of total spending in FY23, up from 27 per cent and 20 per cent in FY22 and FY21 respectively.

Co-developed projects^[2] streamline development efforts by leveraging the SG Tech Stack and other government platforms for security compliance and interoperability, as well as reusing well-tested software components to build applications efficiently. There are currently 27 vendors qualified to co-develop projects with the Government using the SG Tech Stack. This list of vendors will be refreshed with the Agile Co-Development and ICT Professional Services bulk tender ($0.62 billion) to be called in FY23.

^[2] In co-developed projects, government engineers/developers may be responsible for building one component while their industry counterparts build another. This differs from the traditional outsourced model, where the project is built entirely by a vendor based on the requirements stipulated by the government agency.

More projects to be awarded through bulk tenders

Almost 76 per cent ($2.5 billion) of the Government’s projected FY23 ICT spending will go to projects awarded through bulk tenders, up from 27 per cent in FY22. By aggregating demand for ICT products and services common across the Government, bulk tenders reduce costs, time, and effort for public agencies in procuring these services. The value of public agencies’ procurement through bulk tenders has been on an upward trend since 2018.

There are three key bulk tenders amounting to $1.85 billion to be called in FY23:

(a) Enterprise Software-as-a-Service (SaaS) [$0.6 billion]: With greater use of the cloud in the public service, agencies can access a range of ready-made, subscription-based software over the Internet to meet operational needs. This tender provides agencies with customer relationship management (CRM), case management, and service management software to meet their operational needs, as well as “low code” platforms that minimise the coding required to create software applications.

(b) Hosting Support Services (HSS) [$0.85 billion]: This tender provides agencies with a standardised set of core services to support cloud and on-premises hosting.

(c) Personal Computers & Printer [$0.4 billion]: The devices used by public officers are replaced approximately every three years. Over 100,000^[3] devices are expected to be replaced under this bulk tender, which will incorporate sustainability criteria for the first time.

Opportunities for Small & Medium Enterprises (SMEs) remain plentiful. Nearly 80 per cent of all procurement opportunities for FY23 will be available to SMEs, the same as last year.

^[3] There are about 150,000 public officers in Singapore’s Public Service, across 16 ministries and over 50 statutory boards.

Introduction of sustainability metrics

The Ministry of Sustainability and Environment has earlier announced the inclusion of environmental sustainability criteria into government ICT contracts beginning in 2024. The upcoming PC & Printer bulk tender will require suppliers to comply with environmental and energy standards, and practise packaging and materials reuse. These criteria will constitute five per cent of the tender evaluation.

Beyond the PC & Printer bulk tender, GovTech is working towards reducing the cloud infrastructure carbon footprint in the GCC and government data centres to meet BCA-IMDA Green Mark^[4] standards, and optimising code reuse for cloud projects in FY23. GovTech will explore increasing the containerisation of applications and usage of microservices to further automate and streamline the application development process in FY24.

Mr Kok Ping Soon, Chief Executive, GovTech, said: “Our ICT investments in the past five years have laid a firm foundation for the next bound of digital government. The Government will maintain a high level of ICT spending in 2023, as we continue to push ahead with our cloud strategy and find more ways to work closely with the industry through co-developed projects and bulk tenders. Providing opportunities for SMEs to take on government projects is also important, as SMEs form a key pillar of our Smart Nation efforts.”

^[4] For more information on this scheme, please visit https://www.imda.gov.sg/how-we-can-help/bca-imda-green-mark-for-data-centres-scheme.

Issued by:
The Communications and Marketing Group
Government Technology Agency of Singapore

Date:
24 May 2023

For media queries, please contact:

Adrian CHAN (Mr)
Communications & Marketing Group
Government Technology Agency
Tel: 9100 4477
Email: Adrian_Chan@tech.gov.sg

Lester WONG (Mr)
Communications & Marketing Group
Government Technology Agency
Tel: 9190 5932
Email: lester_wong@tech.gov.sg

About Government Technology Agency

The Government Technology Agency (GovTech) is the lead agency driving Singapore’s Smart Nation initiative and public sector digital transformation. As the Centre of Excellence for Infocomm Technology and Smart Systems (ICT & SS), GovTech develops the Singapore government’s capabilities in Data Science & Artificial intelligence, Application Development, Smart City Technology, Digital infrastructure, and Cybersecurity.

GovTech supports public agencies to manage enterprise IT operations and develop new digital products for citizens and businesses. GovTech is the public sector lead for cybersecurity and oversees key government ICT infrastructure, and also regulates ICT procurement, data protection and security in the public sector. GovTech is a Statutory Board under the Smart Nation and Digital Government Group (SNDGG) in the Prime Minister’s Office.

For more information, please visit www.tech.gov.sg.
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