Obama Boosts Tech Spending And Enthusiasm, Report Says - InformationWeek

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02:27 PM

Obama Boosts Tech Spending And Enthusiasm, Report Says

Federal stimulus plan puts information technology back in the spotlight.

Washington's increased focus on technology is boosting spending and enthusiasm, according to a new report.

Compass Intelligence released a report Wednesday, saying that private IT spending will get a boost from increased focus on federal IT modernization, policies promoting innovation, and stimulus spending that will flow to IT companies.

The report states that President Obama has created a sense of optimism among IT providers who believe that the president "gets it." The industry has already felt some positive impact from plans for direct government spending on IT and from government promoting technology, the report states.

Last year, the federal government spent $129 billion on IT, and that figure is expected to rise at a moderate pace of 4.27% annually through 2013, when spending will reach $159 billion, according to the report.

Government spending on IT goods and services will likely reach $135 billion this year, with a focus on health care, education, broadband, mobility, and upgrades, according to managing partner Stephanie Atkinson, who wrote the report.

More than $44.5 billion in stimulus funds are expected to go to school districts, according to the report. Much of that will be spent on local and regional modernization projects, as well as new technology for students, teachers, and administrators.

Economic recovery will be a top priority for government contractors as government customers receive stimulus funds from the American Recovery and Reinvestment Act, which allocates $787 billion for rapid spending to get the U.S. economy back on track.

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