Federal IT spending will continue to grow through 2011

Uncle Sam will be investing more dollars in hardware, software and IT services.

According to Falls Church, Va.-based Government Insights' "Federal IT Spending Guide, 2007":

• By 2011, federal civilian and defense spending will total almost $50.3 billion, up from $38.9 billion in 2006.
  
• The overall federal compound annual growth rate (CAGR) for IT spending will be 5.2 percent through 2011.
  
• The CAGR for federal defense IT spending will be 5.5 percent, compared to a 4.9 percent CAGR for federal civilian IT spending.

Federal defense spending for IT products and services continues to exceed spending by federal civilian agencies. By 2011, federal defense spending will exceed $26.5 billion annually, compared to $23.7 billion for federal civilian agencies.

According to the guide, the Defense Department ranks No. 1 among federal agencies in IT spending. The following agencies are ranked 2-5:

• Department of Homeland Security.
  
• Department of Health and Human Services.
  
• National Aeronautics and Space Administration.
  
• Department of Energy.

The Department of Homeland Security’s IT budget will reach almost $3.6 billion in 2011, while the Energy Department’s IT budget will exceed $2 billion by 2011. 

From 2006 through 2011, both the Department of Energy and the Department of Health and Human Services will see their IT budgets growing faster than the Defense Department’s IT budget. The Energy Department’s IT budget growth rate will reach 8.1 percent (CAGR) through 2011, while the growth rate for the Department of Health and Human Services will reach 7.9 percent through 2011.

More information on the “Federal IT Spending Guide, 2007” is available at the Government Insights Web site.