The Imperative of Government's IT Spending
Worldwide Government IT Spending, 2021-2022
On the other hand, worldwide government IT spending is estimated at $565.7 billion in 2022, up 5 percent from 2021. “The challenges posed by the pandemic have mobilized a wave of digital transformation activities in government organisations across the world,” said Daniel Snyder, director analyst at Gartner. He also added globally, government IT spending is forecast to increase across all segments, except internal and telecom services, in 2022.
Spending on telecom services will decrease in 2022 as governments reduce spending on expensive legacy systems in favor of digital service delivery models. Anything-as-a-Service (XaaS) is gaining popularity across government organizations as it provides a better return on investment, normalizing IT spending over time and making budgeting for IT more predictable.
|
2021 Spending |
2021 Growth (%) |
2022 Spending |
2022 Growth (%) |
2023 Spending |
2023 Growth (%) |
Data Center Systems |
25,085 |
7.3 |
26,137 |
4.2 |
26,642 |
1.9 |
Devices |
37,484 |
13.0 |
37,823 |
0.9 |
37,389 |
-1.1 |
Internal Services |
68,241 |
-2.1 |
68,188 |
-0.1 |
70,767 |
3.8 |
IT Services |
191,841 |
10.7 |
204,206 |
6.5 |
220,997 |
8.2 |
Software |
146,952 |
16.9 |
162,278 |
10.4 |
183,012 |
12.8 |
Telecom Services |
69,190 |
1.1 |
67,102 |
-3.0 |
67,193 |
0.1 |
Total |
538,793 |
9.1 |
565,734 |
5.0 |
606,000 |
100.0 |
Source: Gartner (June 2022)