E-Government refers to the use by government agencies of information technologies (such as Wide Area Networks, the Internet, and mobile computing) that have the ability to transform relations with citizens, businesses, and other arms of government. These technologies can serve a variety of different ends: better delivery of government services to citizens, improved interactions with business and industry, citizen empowerment through access to information, or more efficient government management. The resulting benefits can be less corruption, increased transparency, greater convenience, revenue growth, and/or cost reductions.

Traditionally, the interaction between a citizen or business and a government agency took place in a government office. With emerging information and communication technologies it is possible to locate service centers closer to the clients. Such centers may consist of an unattended kiosk in the government agency, a service kiosk located close to the client, or the use of a personal computer in the home or office.

Analogous to e-commerce, which allows businesses to transact with each other more efficiently (B2B) and brings customers closer to businesses (B2C), e-government aims to make the interaction between government and citizens (G2C), government and business enterprises (G2B), and inter-agency relationships (G2G) more friendly, convenient, transparent, and inexpensive.

E-Commerce has evolved already through four stages: 1) publishing, 2) interactivity, 3) completing transactions, and 4) delivery. To date, most e-government activity has centered on publishing. A study by Anderson Consulting finds vast differences among countries in the maturity of their e-government effort. Perhaps the key finding, however, is that even the most mature countries have tapped less than 20% of the potential.