The public sector IT market grew by nine per cent to more than £8bn in 2006 and will expand by 11 per cent this year, according to figures published by analyst Ovum on Thursday.

Growth is largely driven by infrastructure programmes such as the £12bn National Programme for NHS IT, the £4bn Defence Information Infrastructure and the £2bn Joined-Up Justice scheme.

But although big plans such as ID cards are still on the stocks, financial pressures and the culmination of major infrastructure investments will change the shape of the government IT sector, according to Ovum analyst Georgina O’Toole.

‘The public sector has been on a long period of growth driven by programmes such as the NPfIT, but most are one-offs and they have created a different type of market,’ said O’Toole.

‘Budgets are tightening but there must still be enough investment to make the most of what is now in place.’

Ovum predicts a public sector IT market worth £11.7bn by the end of the current budget cycle in 2011. Negotiations for the next spending round, and the General Election expected in 2010, will both affect growth.

‘In five years’ time the market will be a different shape, with more incremental delivery building on existing infrastructure,’ said O’Toole.

According to the figures for 2006, central government represents 43 per cent, or £3.5bn, of the total public sector IT spend. Growth has been slightly slower than predicted, because of delays in major programmes.