Forrester Predicts Slow Year For Government IT Spending - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
Cloud // Cloud Storage
News
4/28/2008
11:27 AM
50%
50%

Forrester Predicts Slow Year For Government IT Spending

The report found that 43% of governments are working with flat budgets this year, while 40% have bigger budgets than last year.

Governments face big IT challenges this year as funding for spending on technology grows at a slower pace.

Forrester Research on Friday released a report that predicts the top technology issues for 2008 will include infrastructure consolidation, server hardware and legacy software systems replacement, and improving storage.

The report is based on surveys of 151 government and 1,082 nongovernment IT decision-makers in North America, Europe, and Asia Pacific in the fourth quarter of 2007. It states that government IT decision-makers are pessimistic about this year, and most government IT spending will focus on increasing efficiency.

While most government IT decision-makers expect their budgets to rise, increasing expenses for operations, maintenance, and personnel will offset expansion, according to the report.

State revenue will increase at the slowest rate in four years, but that may not translate into increased funds for IT spending, the report warns.

Federal revenue is likely to increase through 2013, and the White House continues to request IT spending increases for 2009. The agencies requesting the largest increases fall under the U.S. Department of Defense. Two DoD agencies -- the U.S. Army Corps of Engineers and the Navy -- requested smaller IT budgets for 2009, compared with the current fiscal year.

The report found that 43% of governments are working with flat budgets this year, while 40% have bigger budgets than last year. Seventeen percent said they are working with smaller budgets.

Thirty-three percent of government respondents forecast a somewhat challenging year, and 21% predict an extremely challenging year. In the private sector, only 16% expect an extremely challenging year.

Forrester Research recommended that vendors brace for a year or two with little changes or new projects by building relationships and shaping ideas for cost savings. Finally, vendors should look ahead to 2010 when new blood in the White House will outline new spending priorities.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
Commentary
2021 Outlook: Tackling Cloud Transformation Choices
Joao-Pierre S. Ruth, Senior Writer,  1/4/2021
News
Enterprise IT Leaders Face Two Paths to AI
Jessica Davis, Senior Editor, Enterprise Apps,  12/23/2020
Slideshows
10 IT Trends to Watch for in 2021
Cynthia Harvey, Freelance Journalist, InformationWeek,  12/22/2020
White Papers
Register for InformationWeek Newsletters
Video
Current Issue
2021 Top Enterprise IT Trends
We've identified the key trends that are poised to impact the IT landscape in 2021. Find out why they're important and how they will affect you.
Slideshows
Flash Poll