1 INTRODUCTION 1.1 Background In its pursuit to enhance economic development, Government of Uganda recognized the use of IT as an enabler to facilitate access to public services by her populace through the use of eGovernment. E-Government is about the use of information and communication technologies and the Internet to improve the delivery of services by government to its citizens and the business sector. The IT Policy will provide guidance on how the use of IT will facilitate interactions within government(s), between government and the citizens, business and citizens, government to business to simplify and enhance its internal and external communications. 1.2 Situational Analysis Information Technology has emerged as the single most important enabler for improving efficiency and effectiveness of organizations. „Electronic Governance‟ is the term that is being used as a synonym to describe an IT driven system of governance that works better, costs less and is capable of serving the citizens‟ needs. However, the use of IT has not yet been appreciated by many sectors as a strategic unit of economic transformation by both the private and public sector. Government is still the biggest consumer of IT services and user of related equipment. Recognizing the enormous potential of IT, major initiatives are being implemented by the Government of Uganda through her institutions, such as Integrated Financial Management System (IFMS), Ministry of Finance Planning and Economic Development (MoFPED); Integrated Human Resource Management System (IHRMS), Ministry of Defence (MoD); Local Government Information and Communication System (LoGICS) in Ministry of Local Government (MoLG); Uganda Revenue Authority countrywide Network (URANET) and e-Tax Payment, Uganda Revenue Authority (URA); Electronic Funds Transfer System (EFTS), Bank of Uganda (BoU)/MoFPED, Community Information System (CIS), Uganda Bureau of Statistics (UBOS)/National Planning Authority (NPA)/Ministry of Local Government (MoLG)/Ministry of Gender, Labour and Social Development (MoGLSD)/Local Governments (LG); Integrated Personnel Payroll System (IPPS), Ministry of Public Service (MoPS); Land Information Management System (LIMS), Ministry of Lands Housing and Urban Development (MoLHUD). There is a high rate of IT illiteracy both in government and private sector. There is very low computer penetration, with the urban areas having over 80% of the computer penetration in the country. The computer penetration is higher in government than in the private sector. Human Resource Development: Human Resource (HR) Development is imperative for the local IT industry to position as an important player in the international IT market. The IT human resource base in both public and private sector is still inadequate. Uganda is operating in a decentralized system; however, the LGs have not yet recruited IT professionals. The recruitment process is very slow in central government and Local Governments (LGs); this is due to the long bureaucratic processes of Government as well as the challenge of finding competent 1