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

  • Defense
    Ryan D. McCarthy being sworn in as Army Secretary Oct. 10, 2019. (Photo credit: Sgt. Dana Clarke/U.S. Army)

    Army wants to spend nearly $1B on cloud, data by 2025

    Army Secretary Ryan McCarthy said lack of funding or a potential delay in the JEDI cloud bid "strikes to the heart of our concern."

  • Congress
    Rep. Jim Langevin (D-R.I.) at the Hack the Capitol conference Sept. 20, 2018

    Jim Langevin's view from the Hill

    As chairman of of the Intelligence and Emerging Threats and Capabilities subcommittee of the House Armed Services Committe and a member of the House Homeland Security Committee, Rhode Island Democrat Jim Langevin is one of the most influential voices on cybersecurity in Congress.

Stay Connected

FCW INSIDER

Sign up for our newsletter.

I agree to this site's Privacy Policy.