Skip to main content

Government IT Spending Gains New Momentum

Many government CIOs often struggle with legacy system issues. Their quest for digital business transformation may be the most highly motivated, compared with their peer group in private business.

Meanwhile, forward-thinking government leaders are planning to support the selective investment in business technology that enables more digital government services. It has become a strategic priority.

Worldwide government information technology (IT) spending is forecast to total $588.9 billion in 2023 -- that's an increase of 6.8 percent from 2022, according to the latest global market study by Gartner.

Government Technology Market Development

"Government organizations are continuing to modernize legacy IT and invest in initiatives that improve access to digital services as constituents increasingly demand experiences that are equivalent to online customer interactions in the private sector," said Daniel Snyder, director analyst at Gartner.

The total experience (TX) framework, which helps government agencies manage employee and citizen interactions, is enabling transformation and will remain among the main drivers of IT spending in 2023.

Along with improving the citizen experience and engagement, a cohesive TX strategy will help governments advance digital skills and literacy in their workforces by providing modern tools and approaches to lessen friction in government work.

According to the Gartner assessment, failing to build a solid TX strategy increases service friction, leading to the risk of service delays and underwhelming service experiences.

In 2023, government IT spending is forecast to increase across all segments except devices, as government end-users extend the useful life of their devices that were acquired at the onset of the pandemic.

Enterprise software will be the highest-growing segment in 2023, followed by IT services and internal services.

Initiatives such as migrating services to the public cloud, modernizing applications, and fortifying network security are among the primary innovation priorities that governments are focused on to improve public engagement and satisfaction.

According to the 2023 Gartner CIO and Technology Executive Survey, digital transformation, leveraging and using data effectively and technology modernization are the top three priorities of government CIOs.

"Delivering on these priorities depends on establishing a shared, organization-wide digital vision and integrating that vision into enterprise-level strategies," said Apeksha Kaushik, principal analyst at Gartner.

Outlook for Government IT Investment Growth

In alignment with these priorities, investments will increase in cybersecurity, application modernization, cloud computing platforms, integration technologies such as artificial intelligence (AI) or machine learning (ML), and business or data analytics tools.

However, government CIOs will have to tackle challenges such as varying stakeholder expectations and developing action plans accordingly. They must address concerns of digital transformation with mission objectives, and work closely with others to ensure a shared understanding and close linkage to priorities.

That said, starting in 2023, I believe government CIOs will reassess their workforce policies, increase IT investment in remote work infrastructure, and recruit the best developer and operations talent they can attract -- regardless of the candidate's geographic location.

Popular posts from this blog

Why Healthcare and Smart City Apps Drive 5G IoT

Fifth-generation (5G) wireless technology for cellular networks is a successor to fourth-generation (4G) wireless technology. By 2023, Juniper Research anticipates that there will be over 1 billion 5G connections globally. The technology will provide the data infrastructure for the advancement of wireless communications and for new developments in the Internet of Things (IoT) -- including smart cities and healthcare. 5G IoT Market Development According to the latest worldwide market study by Juniper Research, 5G IoT connections will reach 116 million globally by 2026 -- that's increasing from just 17 million connections in 2023. Juniper analysts predict that the healthcare sector applications and government or other smart city services will drive this outstanding 1,100 percent growth over the next three years. Juniper examined 5G adoption across key industry sectors -- such as the automotive, mobile broadband, and smart homes -- and forecasts healthcare and smart cities will accoun

How Savvy Leaders Re-Imagine Work in 2023

As we look to the year ahead, there will be significant challenges and opportunities facing the Chief Human Resource Officer (CHRO) role. In order to be successful, savvy HR leaders must be prepared to take proactive steps that adapt and evolve. "HR leaders have faced an increasingly unpredictable environment amid many organizations mandating a return to office, permanently higher turnover and burnt out employees," said Emily Rose McRae, senior director at Gartner . HR Innovation Market Development One of Gartner's key predictions for 2023 is that the use of artificial intelligence (AI) and automation will continue to increase within the enlightened digital workplace. This transition will require HR leaders to develop new skills and competencies in order to effectively manage and lead teams that are increasingly relying on these enabling technologies. Additionally, HR leaders will need to ensure that their organizations are investing in the necessary infrastructure and re

Secure Microcontroller Market to Reach $2.2 Billion

In spite of the volatile global semiconductor industry being plagued by ongoing macroeconomic and political disruption issues, the secure microcontroller (MCU) market should continue to prosper. While the forecasted total available market has contracted -- especially in the smart home, retail, advertising, and supply chain spaces -- secure MCU shipments will likely be temporarily affected.  According to the latest worldwide market study by ABI Research, the secure microcontrollers market will grow to reach $2.2 billion by 2026. Secure Microcontroller Market Development "In part, this is due to the niche nature of security demand which commands a higher value proposition," says Michela Menting, research director at ABI Research . In the short term, potential supply chain issues due to trade embargoes and global COVID-19 pandemic quarantines at manufacturing sites will affect availability. Yet, demand for security, especially in general purpose microcontrollers, will ensure the