Government IT spending to grow 6.8% to $589 bn: Gartner

Government IT spending is forecast to increase at 6.8 percent to $588.9 billion in 2023 from $551.45 billion (+1.4 percent) in 2022 and $535.38 billion (–5.5 percent) in 2021, according to Gartner report.

Government spending will be $25.15 billion (+0.5 percent) on data center systems, $34.66 billion (–0.4 percent) on devices, $68.60 billion (+2.2 percent) on internal services, $209.261 billion (+7.9 percent) on IT services, $183.103 billion (+12.5 percent) on software and $68.20 billion (+0.6 percent) on telecom services during the next year, Gartner said.
Government IT spending in 2023“Government organizations are continuing to modernize legacy IT and invest in initiatives that improve access to digital services as constituents increasingly demand experiences that are equivalent to online customer interactions in the private sector,” said Daniel Snyder, Director Analyst at Gartner. “The total experience (TX) framework, which helps agencies manage employee and citizen interactions, is enabling transformation and will remain among the main drivers of IT spend in 2023.”

Government IT spending is forecast to increase across all segments except devices, as government end-users extend the useful life of their devices that were acquired at the onset of the pandemic. Software will be the highest growing segment in 2023 followed by IT services and internal services.

According to the 2023 Gartner CIO and Technology Executive Survey, digital transformation, leveraging and using data effectively and technology modernization are the top three priorities of government CIOs.

“Investments will increase in cybersecurity, application modernization, cloud platforms, integration technologies such as artificial intelligence (AI) and machine learning (ML), and business/data analytics tools,” said Apeksha Kaushik, Principal Analyst at Gartner.

CIOs will have to tackle challenges such as varying stakeholder expectations and developing action plans accordingly. Government CIOs will need to address concerns of digital transformation with mission objectives. They need to work with government executives to ensure a shared understanding of vision, roadmap and linkage to mission critical priorities.

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