Federal spending on IT is expected to climb over the next few years, reaching as much as $111 billion, according to a five-year forecast from research firm INPUT.
According to the research, spending on federal IT will increase from $85.8 billion last year to $111.6 billion by 2015, at a rate of 5.4 percent.
To calculate its findings, the report parsed the current fiscal year’s IT budget request coupled with interviews and insight from federal IT thought leaders and experts.
Even though the firm predicts growth, there are a number of challenges facing the federal IT and acquisition marketplace: growing federal outlays and deficits, acquisition reform efforts, increased bid protests and in-sourcing.
But Deniece Peterson, manager of federal industry analysis at INPUT, said, despite the challenges, the best forecast is one of growth.
“When we look at all of federal IT, which goes beyond some of the numbers that people typically see from the Office of Management and Budget, we do see the potential growth even within this kind of strict fiscal environment,” she told Federal News Radio.
“There’s kind of a given that technology actually can help save money,” Peterson added, noting cybersecurity, cloud computing and data-center consolidation.