Despite a faltering economy, the federal government in the United States is expected to spend $98.5 billion per year on IT goods and services by 2012, according to a new
report from a Scottsdale, Arizona-based research analytics and consulting firm.
Officials at
Compass Intelligence say that the government’s spending this year on telecom, applications, outsourcing, services and support, network hardware, computer hardware and IT personnel will reach about $80.6 billion. The figure includes civilian programs and defense spending.
According to Stephanie Atkinson, a managing partner at the firm, major trends and opportunities revolve around replacement of legacy hardware, focus on mobile workforce, maturity of E-government, growth in a high-tech military, greater emphasis on cyber-security and a focus on green technology initiatives.
“Federal government IT spending is expected to remain rather steady, despite economic conditions,” Atkinson said. “State and local governments are expected to feel more of the pain from this current recession.”
The IT growth rate in government last year was 6.5 percent, Compass reports, compared to only 5.3 percent in 2008. Next year is expected to see slightly better growth rates, at 5.5 percent, according to the firm.
For many Americans, including those inside as well as outside the IT industry, the inauguration of President-elect Barack Obama next month could signal a turning point in the way that the federal government leverages technology.
As TMCnet
reported, officials at one 40-year-old Washington, D.C. organization that’s dedicated to studying national and world affairs are urging Obama to appoint a science and technology advisor whose advice he trusts as an early pre-inauguration act.
“The benefits of making the right decisions are enormous – as are the costs of making mistakes,” officials at the center say. “Over the past 60 years, every president has had an advisor on science and technology and an office focused on science and technology.”
TMC President Rich Tehrani (
News -
Alert) writes in a recent blog
entry that Obama’s affinity for technology signals a major shift in the presidency, even though he hasn’t taken office yet.
“Love him or hate him, president elect Obama is already changing the presidency by sending emails to communicate with his followers before even taking office,” Tehrani writes. “Since he was elected he has sent a few e-mails including a thank you, a survey and requests to join various support groups.”
According to the Compass report, application spending is expected to be the fastest growing IT segment in government over the next four years, with annual growth between 8.6 and 9.8 percent.
Telecom services spending will be driven by wireline data, VoIP and broadband services, as well wireless data investments, the report says. Not surprisingly, the government’s defense segment represents about two-thirds of total federal IT spending, according to Compass.
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Michael Dinan is a contributing editor for TMCnet, covering news in the IP communications, call center and customer relationship management industries. To read more of Michael�s articles, please visit his columnist page.
Edited by Michael Dinan