Worldwide government IT spending is forecast to increase 7.6 percent to $589.8 billion in 2023 from $589.794 in 2022, according to the latest research report from Gartner.
Government will be spending $26.623 billion (+3.3 percent) on Data Center Systems, $32.643 billion (–4.6 percent) on Devices, $69.178 billion (+3.3 percent) on Internal services, $209.103 billion (+8.9 percent) on IT services, $183.733 billion (+13.5 percent) on Software, and $68.514 billion (+1.4 percent) on Telecom services in 2023.
“Challenges like inflation and workforce scarcity and their local repercussions are testing the abilities of government CIOs to respond with appropriate service delivery mechanisms and organizational accountability,” said Apeksha Kaushik, Principal Analyst at Gartner.
Gartner’s 2023 CIO and Technology Executive Survey showed that 57 percent of government CIOs plan to increase funding for application modernization in 2023, up from 42 percent in 2022.
An increasing number of government institutions are already putting in place at least one digital metric linked directly to outcomes associated with their organization’s public purpose or mission. By 2026, Gartner foresees over 75 percent of governments will gauge digital transformation success by measuring the enduring mission impact.
