IDC: FY 2015 Civilian IT Spending to Exceed Defense Agencies

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IT SpendingA new study by IDC Government Insights forecasts IT spending among civilian agencies to exceed initial fiscal year 2015 projections by $4.5 billion by September and exceed spending of civilian agencies by 15.4 percent.

IDC said Friday the new IT spending projection is a 10.3 percent increase from the original to reach a total of $48.1 billion and IDC also predicts a 1.9 percent increase in fiscal 2016 to the White House’s proposed $49 billion budget.

The research firm predicts the Department of Health and Human Services will lead in 2015 IT spend growth at $12.6 billion and 2016 IT budget at $11.4 billion.

“Despite the fact that the agency will see slightly negative growth for 2016, HHS still dwarfs other agencies when it comes to IT spending, representing over 23 percent of civilian agency spending,” said Shawn McCarthy, research director at IDC Government Insights.

IDC identified healthcare-related programs as the largest drivers of civilian IT spending and cited the Medicaid Management Information System and Veterans Affairs Medical IT Support initiatives.

According to IDC, trends in spending have also shifted toward the procurement of whole systems rather than separate hardware and software and the firm expects civilian agencies to spend $57 billion on IT by fiscal year 2019.

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