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Global government IT spend to crack $550B

Global government IT spend to crack $550B

Software to be the fastest growing segment.

Credit: Dreamstime

Global government IT spending in 2022 is expected to grow 6.5 per cent year-on-year by 2022 to US$557.3 billion, with IT services making up the lion’s share. 

According to research firm Gartner, global government IT spending on services has been predicted to grow over the period by 8.4 per cent, to US$203.9 billion.  

Meanwhile, the segment with the fastest growth is anticipated to be software, rising 12 per cent to US$151.9 billion.  

As for the segments not expecting growth, these are predicted to be devices, which is predicted to fall by 1.6 per cent, to US$40.4 billion, and telecommunication services, with an estimated fall of 0.8 per cent, to US$61 billion. 

Driving the overall global growth is the COVID-19 pandemic, according to Gartner research vice president Irma Fabular. 

“Governments will continue to accelerate investments in digital technologies to respond and recover from the continuing evolution of public health uncertainties due to the COVID-19 pandemic,” she said. 

“The disruptions caused by the pandemic have also reinforced a key digital government tenet, which is public policy and technology are inseparable.” 

She also said 50 per cent of government agencies predicted to have modernised their critical core legacy applications by 2025.   

Additionally, Gartner said the pandemic has pushed the need for the adoption of citizen digital identity as a “critical element” to digital government transformation. 

“Digital identity is moving beyond authenticating citizens online and signing remote transactions,” Fabular added. “To raise the chances for greater adoption of digital identity, governments must treat privacy, security and user convenience as critical success factors.” 

If the global 2022 prediction occurs, this will see it surpass the predicted spend of US$482.8 billion for 2021.


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