GEIA predicts subdued federal IT market growth

The federal information technology market will grow from $64.7 billion in fiscal 2006 to $74.4 billion in fiscal 2011, according to a new forecast from the Government Electronics and Information Technology Association.

This change translates to an annual growth rate of 2.9 percent, lower than the 3.6 percent growth GEIA predicted in its market forecast last year. The association attributes the slower growth prediction to a greater emphasis on efficiency and consolidation spurred by factors including the rising federal deficit and reconstruction in the wake of Hurricane Katrina, along with the continued expenditures on the war in Iraq and other conflicts.

According to the GEIA, the Defense Department IT budget will grow slightly faster than the civilian side— 3 percent per year compared with 2.8 percent— because of the war, security needs and infrastructure upgrades.

"Throughout the study process, we heard repeatedly about the need to be efficient, to cut costs and to eliminate legacy systems," said Mary Freeman, GEIA's budget chairwoman and director of business development for Verizon Federal Markets.


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