Pandemic driving worldwide government IT spending
Worldwide government IT spending will increase 6.5% next year. Governments will continue to accelerate digital investments to respond and recover from health uncertainties due to the pandemic, research and marketing firm Gartner forecasts. Total investment next year will be USD 557.3 billion.
“The pandemic has amplified the need for governments to rapidly scale IT infrastructure and application systems and respond to unprecedented public demands.”
Gartner estimates that by 2025, over 50% of government agencies will have modernized critical core legacy applications to improve resilience and agility.
“Governments are rethinking their public cloud strategies to accelerate IT modernization, improve efficiencies and increase data security,” said Irma Fabular, research vice president at Gartner.
The pandemic has intensified the need for adopting citizen digital identity as a critical element to digital government transformation, the company says.
“Digital identity is moving beyond authenticating citizens online and signing remote transactions,” said Fabular. “To raise the chances for greater adoption of digital identity, governments must treat privacy, security and user convenience as critical success factors.”
The forecast says that in 2022, increased investments in digital technologies will see governments spend 64% of total IT spending on IT services and software to improve responsiveness and resilience of public services. These include investments in enhancing customer and employee experience, strengthening analytical capabilities and scaling operational agility.”
“IT infrastructure and applications modernization as well as digital government transformation will remain high government priorities in 2022. In addition, COVID-19 economic assistance funding packages, such as the American Rescue Plan Act in March 2021 and NextGenEU, will drive further funding on digital enablement, including support for sustainable growth, social programs, education, cybersecurity and digital inclusion.
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