cl-nz logo
Story image

Global government IT spending to reach $438 billion in 2020

Worldwide government IT spending is forecast to total $438 billion in 2020, a decrease of 0.6% from 2019, according to the latest forecast by analyst firm Gartner.

The forecast shows global government IT spending will represent 16% of total enterprise IT spending across all industries, which is forecast to total $2.7 trillion in 2020, a decrease of 8% year over year.

“Government organisations are accelerating IT spending on digital public services, public health, social services, education, and workforce reskilling in support of individuals, families and businesses that are heavily impacted by the COVID-19 pandemic,” says Irma Fabular, senior research director at Gartner. 

“To sustain economic viability, government organisations also deployed government recovery assistance programs which assist small businesses and allow workforce reskilling," Fabular says.

According to the Garter forecast, the software sector is set to experience the strongest growth in 2020.

The only segments on pace to show growth in 2020 will be IT services and software. IT services will continue to be the largest IT spending segment among governments in 2020, while software spending will experience the strongest growth, with an increase of 4.5% in 2020.

“As government organisations globally begin to ease stay-at-home policies, some practices relevant to public health and wellness will persist, including options for telecommuting,” says Fabular.

“Many government organisations will also introduce measures to build community and national resilience, including improving disease and other threat surveillance systems," she explains. 

"An example is the $500 million in aid designated by the U.S. federal government in public health data surveillance and infrastructure modernisation to help states and local governments develop COVID-19 tools."

Important but less urgent IT projects, such as enterprise resource planning (ERP) and robotics process automation (RPA), will be delayed to make room for immediate and critical spending in digital workplace support, public health response and economic growth, according to Gartner. 

Adoption of cloud services will continue to accelerate while spending on in-house servers and storage will continue to decline.

 Government IT spending in North America will be the largest globally, reaching $191 billion in 2020, followed by Western Europe ($94 billion) and Greater China ($39 billion). 

Digital government services, data and analytics, cybersecurity as well as citizen engagement and experience will continue to be spending targets for the public sector. 

In addition, as illustrated by an EU policy recommendation, building health system resilience to combat future pandemics will dominate some leadership priorities. 

These priorities will include spending on supply chain predictability, medical research and IT infrastructure security solutions.

Story image
APAC retailers lagging in omnichannel capabilities
“It’s great to see APAC brands making significant progress in improving customer experience, however, currently they aren’t setting the bar high enough for a customer-centric strategy."More
Story image
Trend Micro integrates with AWS Network Firewall
As a Launch Partner, Trend Micro has integrated managed threat intelligence feeds from its cloud security solution to enable superior protection in line with this new AWS managed firewall service.More
Story image
Webinar: TLC for Kids on their usage of Nintex Drawloop DocGen
The charity is using the software to free up resources and enable its team to focus on its mission — which, simply put, is to put smiles back on sick kids’ faces. It does this through its TLC Ambulance, Rapid TLC, and distraction box programs, and its services are used over a million times each year across Australia.More
Story image
DDoS campaigns, BEC scams & Emotet: CERT NZ reports top security threats
It has been yet another tumultuous quarter for New Zealanders and their wallets, with almost $6.4 million in reported financial losses due to cybersecurity incidents.More
Story image
NZ tech sector continues upward trajectory as export revenue grows
Export revenue for New Zealand tech companies is on the rise, as an increasingly diverse international market heightens its demand.More
Story image
Micro Focus pledges deeper channel commitment in APJ
“Through the strengthened relationship we have with our network of resellers and distributors in Asia Pacific and Japan, we want to instil in them a renewed sense of confidence."More