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)