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Government IT: Budgets to Shrink Over Coming Years

By Dick Weisinger

Gartner is predicting a drop in US government spending on IT by as much as 8 percent in 2013.  IT spending for 2012 is forecast to be $79.2 billion, but in 2013, that’s expected to slip to $75.2 billion.  In 2014, a four percent drop is expected, reducing the government IT spending level to $73.2 billion.  And in 2015, spending will slip again to $71.7 billion.  From 2015, spending is expected to plateau or to begin rising again.  The forecast was reported by Steven Burke of CRN reported based on a presentation given by Gartner’s Vice President of Government research, Rishi Sood.

The forecast falls in line with an earlier one announced by Gartner in April that expected spending in 2012 by the US government to be flat, followed by contraction in 2013.  One exception to the overall trend in reduced spending is the in the area of federal health care IT — that particular segment has been posting 9 percent increases annually and is expected to reach $14 billion this year.

Sood commented that new technologies like cloud computing are expected to stimulate government spending by 2015, after which an uptick in government spending is expected.  He expects there to be more cooperation and sharing among government agencies going forward.  The use of share services and resources is expected to increase with a move away from each agency running a separate silo-ed IT operation.

Sood said that “One way or another the tremors taking place with technology in the federal government market are going to be long-lasting.”

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