The UK government could extract up to $173.4bn by utilising IT to reduce the deficit through Big Data and the Internet of Everything (IoE).
As George Osborne announced that £25bn must be cut to balance the books, IoE can help governments create value in the public sector by saving money, improving employee productivity, generating new revenue (without raising taxes) and enhancing citizen benefits.
Unlocking Big Data will aid the IoE - the connection of people, process, data and things - to transform the ways cities deliver services and generate $157.3bn, through mobile collaboration, cyber security, implementation of BYOD and travel avoidance, according to a new study by Cisco.
"Public-sector leaders are under tremendous pressure to bridge the gap between rising citizen expectations and shrinking resources," said Martin McPhee, Cisco's SVP for Consulting Services.
"IoE solutions have the potential to change everything. Public sector leaders should act now to identify major IoE opportunities in their agencies, and begin by reimagining what is possible in an IoE world."
Cisco revealed the remaining $16.1bn in value could be generated by transforming how citizens interact with the government including teleworking, smart parking schemes, smart street lighting, drug compliance programmes and medical services.
The study indicated the larger worldwide potential for IoE and builds on research released by Cisco in February 2013, which identified potential profits of $14.4 trillion for private companies that embrace IoE over the next decade.