Some growth in government IT spending, recent report shows
Governments in the U.S. (federal, state and local) will spend about $135 billion on IT products and services in 2009, an increase of 4.3% over 2008 levels, according to an analysis by Scottsdale, Ariz.-based Compass Intelligence.
Government IT spending will reach $159 billion by 2013, predicts the company's recent "Government IT Today: IT Budget and Tech Trends in Government." Between 2010 and 2013, Compass Intelligence predicts spending will grow about 4.2 percent annually.
Federal agencies account for the lion's share of government IT spending; in 2009 federal agencies will spend $86 billion, or almost 64 percent of government IT expenditures. Local governments will account for one-quarter of government IT spending, or $34 billion. States will spend $16 billion, or 11.5 percent of total government IT expenditures. States and federal agencies saw their IT budgets grow 4.8 and 4.5 percent, respectively, comparing 2009 with 2008. Local governments had a 3.8 percent growth rate in 2009 vs. 2008 budgets.
"The near-term expenditure focus areas (in government) include applications, interoperability, remote access, and mobility (Wi-Fi)," says Stephanie Atkinson, managing partner at Compass Intelligence. "The future or two- to four-year-out trends include video, multi-media applications, and specific areas such as RFID and biometrics."
Atkinson sees some of the hot buttons in government IT in 2009 and 2010 as:
- American Reinvestment and Recovery Act (ARRA) stimulus funding
- Emergency management, alert notification and disaster planning
- Digital divide and the push for broadband
- Green government
The economic recession and drop in sales tax revenues as well as the move toward greater transparency and accountability will affect government IT spending, according to the Compass Intelligence report.