Annual federal government spending on information technology is expected to rise just under 3% a year for the next five years to $91.3 billion, a new report says. And that means more purchasing and hiring.
The forecast from TechAmerica, a consortium of tech trade organizations, also says that civilian agencies -- not the Department of Defense -- will drive the growth, reversing a trend that has been in place since the 9/11 terrorist attacks nine years ago.
While the annual growth rate might seem small, the sheer size of the U.S. government IT budget means the forecast would translate into an additional $10.5 billion in spending every year on IT projects.
The report was based on data gathered by TechAmerica and on discussions with senior leaders at federal agencies, congressional oversight committees, think tanks and industry.
The spending increase will be driven by greater investment in health care technology, energy efficiency and business intelligence, the report said.
The single biggest federal IT project between now and 2015 is a new auditing and payment accounting system for the Centers for Medicare and Medicaid Services, which wants to provide an audit track for every single transaction.
Mostly because of this project, the Department of Health and Human Services is expected to have the greatest growth of any federal IT budget during the next five years.
Overall, civilian agencies are expected to increase IT spending at twice the rate of the Department of Defense, which for the last decade has been the main driver for federal IT spending growth, the report said.
Write to John Shinal