Input sees rebound in state, local IT spending

State and Local IT Market Forecast

Related Links

After years of cuts in information technology budgets, state and local government spending on IT is expected to start rising this year and hit $64 billion by fiscal 2009, according to an analysis released today.

Local government budgets have been down across the board because of economic pressures, but between fiscal 2004 and 2009 IT spending should grow from $46 billion to more than $64 billion, according to the State and Local IT Market Forecast from Reston, Va.-based research firm Input.

Recovery of the economy and changes in local tax structures will account for much of the increase, but professional services outsourcing, communications and networks and software purchases are expected to be the areas of the greatest growth, said James Krouse, manager of state and local IT market analysis at Input, in a statement.

"The increasing political receptivity of outsourcing has enabled government officials to move processes outside and to focus on core competencies in government administration," Krouse said. "Communications and network spending will also remain strong given the increased necessity for interoperable homeland security and citizen-centric programs like e-government."

On the other hand, spending on hardware and maintenance of legacy systems is likely to either remain flat or even decrease, according to the analysis.

Featured

  • People
    Federal CIO Suzette Kent

    Federal CIO Kent to exit in July

    During her tenure, Suzette Kent pushed on policies including Trusted Internet Connection, identity management and the creation of the Chief Data Officers Council

  • Defense
    Essye Miller, Director at Defense Information Management, speaks during the Breaking the Gender Barrier panel at the Air Space, Cyber Conference in National Harbor, Md., Sept. 19, 2017. (U.S. Air Force photo/Staff Sgt. Chad Trujillo)

    Essye Miller: The exit interview

    Essye Miller, DOD's outgoing principal deputy CIO, talks about COVID, the state of the tech workforce and the hard conversations DOD has to have to prepare personnel for the future.

Stay Connected

FCW INSIDER

Sign up for our newsletter.

I agree to this site's Privacy Policy.