IT spending growth forecast

The federal government's spending on information technology will grow from $45.4 billion to $68.2 billion between 2003 and 2008, according to the Federal IT Market Forecast, published annually by market research firm Input.

Homeland security and e-government are the highest priorities and spending drivers for agencies right now, according to Payton Smith, Input's manager of federal market analysis.

The five agencies that spend the most on IT are the departments of the Treasury, Homeland Security, Defense, Energy and Transportation. Input predicts that the five will account for about 70 percent of the total IT expenditure in 2008.

The Homeland Security Department, because it was built from the melding of almost two dozen once-separate agencies, will become a spending powerhouse, Input predicted.

The report also says that the growth will be greatest for outsourcing services.


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