Government spending on devices and software to record highest increases YoY.
Worldwide government IT spending is forecast to total US$483 billion in 2021, an increase of 5.1 per cent from 2020, according to the latest forecast by Gartner.
“Government organisations continue to be challenged with the appropriate level of interventions to respond and recover from the COVID-19 pandemic,” said Irma Fabular, senior research director at Gartner. “Public health and safety measures, including vaccinating citizens are of paramount concern, which necessitate governments to continue to accelerate their digital transformation journey.”
Three segments are on pace to exceed the overall market growth in 2021. The software segment, which includes application, infrastructure, and vertical-specific software, will experience the strongest growth in 2021. “Governments are innovating at a quicker pace by adopting commercially available technology solutions for operational and mission critical needs,” said Ms. Fabular. “We are seeing innovative use of technology and data to control and respond to the pandemic, as well as provide financial and humanitarian assistance.”
As government organisations continue to embrace remote work and hyperconnected public services, spending on devices is expected to grow 5.6 per cent in 2021, up from 1.6 per cent growth in 2020 (see Table 1).
Table 1. Government IT Spending Forecast by Segment, 2020-2021, Worldwide (Millions of U.S. Dollars)
| Segment
|
2020
Spending |
2020
Growth (%) |
2021
Spending |
2021
Growth (%) |
| IT Services | 160,043 | 4.8 | 168,639 | 5.4 |
| Software | 108,212 | 8.9 | 118,149 | 9.2 |
| Telecom Services | 63,935 | -0.5 | 67,200 | 5.1 |
| Internal Services | 63,927 | 1.0 | 62,423 | -2.4 |
| Devices | 33,029 | 1.6 | 34,875 | 5.6 |
| Data Center | 30,279 | 5.7 | 31,514 | 4.1 |
| Total | 459,425 | 4.2 | 482,800 | 5.1 |
Source: Gartner (February 2021)
“The COVID-19 pandemic exposed weaknesses in the ability of government organizations to quickly respond, scale and secure essential services,” said Ms. Fabular. “Lessons learned from the responses by government organizations provide the impetus to increase resiliency and build for a stronger future for its citizens and businesses.”
In 2021, government budgets will continue to address recovery and growth needs of communities and businesses. In addition, investments to address digital equity and access to remote government services will be prioritised.
Tags: Gartnergovernment
