September 7, 2017

What is the public sector?

You have probably heard the term public sector. But what does it refer to? According to TechTarget, a public sector is a portion of an economic system that is controlled by national, state or provincial, and local governments. Some examples include police, military, public transit and public schools.

To support these functions, an IT investment is needed and that is no small matter. It is estimated that Federal 2018 spending will be $86 billion, including $33.2 billion for Department of Defense IT projects. State and local spending for 2017 is estimated to come in at $101.3 billion, with states expected to spend $48.4 billion and local governments to top $52.9 billion. Top areas of increased funding include cybersecurity, governance, citizen engagement, network broadband & connectivity and cloud computing – all good news for Arrow partners

How to Work With the Public Sector
When governments need goods or services they can’t supply, they typically seek out private sector corporations, like Arrow partners, to fulfill their requirements. This is called outsourcing. The military would be one good example. When military airplanes are needed, their construction is outsourced to a corporation that develops aircraft.

For Arrow partners, selling IT into the public sector can be quite profitable but at the same time quite cumbersome. Technology companies operating in this market segment must conform to a complex array of acquisition regulations, compliance requirements, marketing restrictions, ethical rules, and unique processes to grow their business while minimizing risks and serving the American taxpayer.

Arrow Enables Public Sector Sales
Arrow has eased the process of selling to the public sectors with the acquisition of immixGroup, the largest value-added distributor of enterprise IT products for the U.S. public sector marketplace. immixGroup enables IT manufacturers and solution providers to grow their public sector business while offering government agencies reliable access to enterprise software and hardware products.

If you would like additional information about selling into the public sector or about how to work with immixGroup, contact your Arrow representative.