2006 Top ICT Challenges facing Local Governments ForgeAhead’s Latest ICT in Local Government Research outcomes show that some of the top considerations facing local governments in South Africa are: ICT strategy Development Skills shortage Open Source Wireless Business governance Outsourcing / shared services Convergence ICT Strategies – A must One of the biggest challenges facing Local Governments is the need to utilize ICT processes to enhance service delivery to the citizen.  ForgeAhead’s latest ICT in Local Government Research shows no significant improvement in the implementation of ICT strategies amongst Local Governments from 2005 to 2006. Sizwe Khumalo, Research Manager for Local Government at ForgeAhead comments, “ICTs alone, without the Policies and ICT strategies to guide Local Governments will not achieve the desired goals.  Most Local Governments are in need of support and assistance when it comes to ICT strategies and policies which presents an opportunity for service providers in this industry to partner with Local Governments in developing these strategies and policies.” Lack of Skills and a trend towards Outsourcing / Shared Services Less than 20% of Local Governments have ICT Skills Development Plans in place.  This is one of the core issues as highlighted in ForgeAhead’s latest ICT in Local Government Research undertaken between May and August this year.  To overcome the effects of the skills shortage, as well as budget constraints, many local governments are looking at opportunities to outsource and are also considering shared services where the ICT infrastructure resides in the district with the smaller municipalities sharing this infrastructure on a needs basis.  To optimize this approach however, an excellent network infrastructure is a pre-requisite, allowing for secure, available access to information. Outsourcing, although it is considered a way in which to deal with the skills shortage presents its own problems in that skills transfer hardly ever takes place as the private sector outsourcer provides all the skills and management on an outsourced basis and the skills that are resident in the local government, never grow and learn. Open source – Strong Future plans South African Government is a big supporter of Open Source Software and there are some really good working examples of open source applications at a local government level.  Comments Sizwe Khumalo, Research Manager for Local Government at ForgeAhead, “ Our research shows a low incidence of ICT strategies at present, but it is interesting to note that a third of the local governments had indicated plans to acquire OSS into the future.”  The shortage of skills at Local Government level could slow the adoption of OSS, therefore it is up to Government to do whatever it can to skill and build capacity in the regions. Wireless to enhance Service Delivery ForgeAhead’s Local Government Research has revealed that local governments are realizing the opportunities and benefits of wireless technologies. Some Metros are installing their own telecommunications network infrastructure, citing the main drivers as cost savings and their need to empower disadvantage communities.  Sizwe Khumalo from ForgeAhead comments that his research shows that while the Electronic Communication Act allows local governments to provide their own networks, challenges in implementation will come from vagueness of policy and relevant experience within municipalities.  Converging Worlds Although South Africa is addressing convergence from a legislative point of view, it presents more challenges and considerations for the ICT decision makers in Local Governments as the boundaries between IT and telecoms blur.  In the converging world of local Government ICTs, ForgeAhead’s research shows that there are definite plans and considerations around Internet Protocol technologies, telephony and internet access, let alone the potential that broadband could deliver, as essential components in the delivery of services within local governments. A move towards Business Governance ForgeAhead’s latest research outcomes show a move by some local governments towards corporate governance.  This is evidenced by the fact that municipalities are looking to implement appropriate financial and billing systems.  Revenue generation, and better business management by the municipalities are cited as the main benefits that can be derived from appropriate effective ICTs.