Published: 12/31/2009


INPUT estimates that state governments will lose $67 billion in 2010 to waste, fraud, and abuse (WFA) across five major benefits programs. These programs?including Medicaid, unemployment insurance (UI), Temporary Assistance to Needy Families (TANF), housing assistance, and food stamps?account for nearly 80% of all federal benefits spending at the state and local levels.

  • Business Intelligence (BI) & Prevention
  • Audit & Recovery

Although many state and local governments have already invested in these technologies?primarily for Medicaid, there are a number of current factors converging to draw increased demand and spending in these areas. The report provides updates on the ways in which the state fiscal crises and the Obama administration?s anti-WFA agenda will drive consumption. Combined demand for these technologies by U.S. state and local government agencies will increase from $735 million in 2009 to nearly $1.1 billion in 2014, at a 5-year Compound Annual Growth Rate (CAGR) of 7.6% during the forecast period.

As a key component of the report, INPUT conducted interviews with programmatic experts in the public and private sectors, including not-for-profit organizations, to identify and understand the emerging trends, key drivers and obstacles, and organizational willingness and readiness to adopt anti-WFA technologies.

Key Findings

INPUT draws upon its extensive expertise on the government IT industry to analyze and forecast state and local spending across the five technology areas. Key market drivers currently shaping the adoption and implementation of the profiled technology areas include:

  1. Financial necessity/cost savings
  2. Stimulus-driven intergovernmental transparency and accountability initiatives
  3. Emerging demand for technologies that support performance management

Critical Insight for Vendors

This report provides a detailed view of state and local government spending and market forecasts for the next five years, and is designed to enhance the business development planning process with relevant strategic analysis. The report will provide insight into:

  • The intergovernmental transition away from the ?pay-and-chase? to fraud prevention
  • The targeted potential for business-process outsourcing (BPO) in a fraud-prevention framework
  • Food stamps as a model for near real-time data collection and program monitoring
  • The crying need for cross-program and interstate systems for information sharing
  • Federal goals and standard for internal control most likely to be enforced on states

This report is delivered in PowerPoint format. In addition, the report package includes an accompanying Excel workbook with the data for the technology segment forecasts and relevant macro-level market data.

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