Government IT spending is projected to grow nearly 7% in 2023 as governments continue to modernize legacy IT and invest in technologies that are as seamless and intuitive as those used by the private sector.
IT analyst firm Gartner says global government IT spending will hit nearly $589 billion in 2023, an increase of 6.8%, as governments look to improve the citizen experience and engagement. New investments will aim to improve access to digital services and help agencies manage employee and citizen interactions, a category Gartner calls the total experience (TX) framework.
The firm says a cohesive TX strategy will also help governments advance digital skills and literacy in their workforces by providing modern tools and approaches to lessen friction in government work. Failure to do so will increase friction and lead to delays and an overall underwhelming experience.
Government IT spending is projected to increase across all categories except devices, as governments will look to extend the life of their devices acquired at the onset of the COVID-19 pandemic.
Meanwhile, software is projected to grow at the highest clip at a growth rate of 12.5%, reaching more than $183 billion. IT services come in as the second-highest growth area with a projected spending increase of 7.9%. Internal services will grow 2.2%, Gartner predicts.
The analyst firm says initiatives such as migrating services to the cloud, modernizing applications and fortifying network security are among the top innovation priorities that government IT professionals are focused on to improve public engagement and satisfaction.
Gartner’s 2023 CIO and Technology Executive Survey found that government CIOs are most concerned with digital transformation, leveraging and using data effectively, and technology modernization.
Apeksha Kaushik, principal analyst at Gartner, says delivering on those three priorities depends on establishing a shared, organization-wide digital vision and integrating that vision into enterprise-level strategies.
“In alignment to these priorities, investments will increase in cybersecurity, application modernization, cloud platforms, integration technologies such as artificial intelligence (AI) and machine learning (ML), and business/data analytics tools,” Kaushik says.
Meanwhile, CIOs will have to tackle other challenges, such as varying stakeholder expectations and developing action plans accordingly.
“Government CIOs will need to address concerns of digital transformation with mission objectives. They need to work closely with government executives to ensure a shared understanding of vision, roadmap and linkage to mission critical priorities,” added Kaushik.
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