Smart cities have intrigued local governments and cities across the nation, and they are looking to the future by issuing the contracts to become ‘Smart Cities’ now.

The private sector can help municipalities achieve ‘Smart City’ status through updating their technologies and infrastructure in ways that increase process efficiency, promote sustainability, decrease costs and enhance livability. Evolving into a Smart City is good for local governments, the business community and the overall economy. Here’s why:

Governments See a Return on Investment in Becoming a ‘Smart City’

Advocates say smart city technology will save cities money and energy, while better connecting cities and citizens.

Government Technology

With government agencies placing a high priority on investment to become a Smart City, they’ll realize a significant drop in operating costs once the initiatives are implemented.

Governments are investing in technologies for things like wireless sensors to more efficiently manage traffic lights and street signals to lower energy costs. These smart technologies can provide agencies returns on their investments that can be quantified in terms of the efficiencies gained over a specific amount of time.

Businesses that stand to gain from these government investments those who sell the necessary hardware and software, and construction firms who have the capabilities to supply and set up infrastructure.

Furthermore, in this era of heightened awareness on environmental impact, governments are looking for ways to operate that don’t adversely affect the environment. Government buyers are now taking into account sustainability and how to be more “green” when making their investment choices. For example, to reduce greenhouse gas emissions, governments are investing in zero and low emissions vehicles.

Vendors with a focus on sustainable and renewable technologies and operating procedures for services like food services and waste management can take advantage of environmentally conscious efforts.

Smart Cities Can Positively Charge Local Economies

When things are cheaper for the government, they’re cheaper for everybody. Cities that become ‘Smart’ express certain values to which many businesses will be attracted to. Government investment in cost-reducing technologies helps businesses invest in the region at a lower cost. A lower cost of doing business can be attractive and increase the number of businesses that choose to set up shop in a region; thus, government agencies can benefit from more local bidders.

The concept of Smart Cities is a construct in which to frame local government transformation. Cities need to transform in order to develop sustainably, improve resilience, meet citizens' rising expectations, and attract investment, new businesses, and talent.

International Data Corporation

Just like government agencies that buy with environmental impact in mind, more businesses are committing to sustainability. Even for entities where the bottom line is the top priority, reducing the impact on the environment is key. Businesses are placing a high priority on moving away from away from dirty, carbon-based fuels to clean, low-carbon energy sources.

Companies who sell fuels, energy, roadway supplies and equipment, and transportation vehicles are among those that can win the contracts.

Smart Cities Initiatives Mean More Contracts, and Vendors in Multiple Industries Can Take Advantage

In order for governments to execute these smart city solutions, they need to hire suppliers and providers of smart technologies, products and services to get the jobs done. An evolution among local governments to become a ‘Smart City’ means that there will be plenty of government bids & RFPs for organizations that supply and provide goods and services to government agencies for years to come.

In addition to big tech companies like IBM, Cisco, GE, Intel and others, there are hundreds of smaller vendors of hardware, software and apps that want to cash in on the smart city phenomenon.

Computer World

For everything from architecture to energy, IT hardware, operations/maintenance, public safety, and water & wastewater treatment, governments will be extending contracts for suppliers and service providers to help them execute their smart city initiatives.

Download Report