While it is still unclear what the final economic stimulus plan will look like when the bill is signed in late February, it is clear that there will be money designated for IT spending. Of the many details yet to be determined, one of the largest is who the money goes to and what the money will be spent on.
This article will explore some of the targeted efforts of the current proposals on IT spending. These targeted efforts include the Transformation of our Economy with Science and Technology and Technology Improvements for a More Efficient and Secure Government.
Transform our Economy with Science and Technology
This section of the proposed bill includes wireless and broadband grants. Multiple studies show a direct correlation between broadband penetration and employment. The Brookings Institute, a Washington DC based think-tank, projects that every percentage point increase in broadband penetration provides 300,000 additional jobs. With additional broadband and wireless access comes the ability to create and run effective businesses, not to mention work remotely without geographical constraints.
Technology Improvements for a More Efficient and Secure Government
As the proposed bill stands today, approximately $1 Billion would be marked specifically for technology improvements within government itself, including modernization of the Social Security Administration’s National Computer Center, as well as critical IT improvements for the Farm Service Agency, State Department and Department of Agriculture. By improving the technology that these agencies utilize, the expectation is that it will significantly increase efficiencies and reduce the time it takes to meet their respective objectives.
The United States is not the only country that is relying on technology as a way to improve the economy. There are currently at least a dozen plans from other well-developed countries to leverage technology as a way to stimulate the current economic situation and prepare for the demand of a future population that relies heavily on technology.
The indirect and potentially much larger IT spending initiatives are related to plans within the current proposal that depend on IT investment as a critical component of achieving other objectives. These initiatives include investments in the computerization of healthcare records, better utilization of technology in education and a significant increase in infrastructure spending, just to name a few.
Healthcare
Computerization of healthcare records is a significant initiative targeted not only at increasing jobs, but more importantly targeted to prevent medical mistakes and potentially reduce healthcare costs by billions of dollars annually. Standardization of medical records across a single platform would enable medical professionals to better understand the health of their clients as well as make better choices as it pertains to their needs and overall care. From an employment perspective, the Information Technology and Innovation Foundation, an American think-tank, estimates that $10 billion invested over a year in health-related technology, particularly standardized electronic health-records, would create more than 200,000 jobs.
Education
While the consensus is that a significant increase in spending for local school districts and public colleges and universities will not significantly increase jobs, it will provide an opportunity to invest in classrooms, labs and libraries designed for the 21st century. Many public schools, especially those in inner-cities and largely rural areas are not adequately equipped to deliver a learning experience different than that of a couple of decades ago. The expectation is that with special funding and by utilizing technology to educate and engage students today, they will be more prepared to thrive and compete against or even collaborate with any worker in the world.
What is in store for technology spending?
While it is unclear when passage of the bill will occur and how much money will be dedicated to each initiative, it is clear that there will be significant IT spending for multiple market segments. For those market segments that do not receive government money it is now more important than ever to evaluate and identify technology to increase productivity, improve revenue and decrease costs.
To learn more about how Comm-Works can help you identify areas where technology can enhance or improve your business, contact us at 800.853.8090 or marketing@comm-works.com.