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Federal IT Market Forecast FY 2006 � FY 2011
INPUT, April 2006, Pages: 133
According to this report, Federal IT Market Forecast, FY 2006–FY 2011, the federal market demand for vendor-furnished information systems and services will increase from $63.3 billion in FY 2006 to $80.5 billion in FY 2011 at a compound annual growth rate of 5.0%. Having emerged from a period of crisis, highlighted by the Year 2000 bug and the first Iraq war more than six years ago, the U.S. federal government is in the midst of another critical period highlighted this time by the second Iraq war, domestic disasters in the Gulf Coast region, and the continuing budget deficit. However, the government’s limited resources are being stretched in several different directions, which is the leading reason the U.S. Office of Management and Budget has been working to curtail spending in the federal Information Technology market.
War and homeland security remain powerful drivers of federal spending on information technology in FY 2007, but the forces of IT systems consolidation, IT security initiatives, Lines of Business (LoB) initiatives, and a new focus on health information technology have begun to dominate new budget requests. Based on the most recent request to Congress, a much more modest growth is expected over the long term. The dramatic increases that were seen in federal IT spending during the past five years are clearly at an end.
This report analyzes the trends outlined in the federal agency FY 2007 information technology (IT) budget requests. Based on our observation of the federal IT procurements and recent long-range IT plans, this report forecasts spending trends related to technology, acquisition processes and regulations. The report also notes key program developments that will shape the size and direction of this important marketplace.
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