Global government IT spending to grow 5% to US$565.7b in 2022, says Gartner - MIDA | Malaysian Investment Development Authority
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Global government IT spending to grow 5% to US$565.7b in 2022, says Gartner

Global government IT spending to grow 5% to US$565.7b in 2022, says Gartner

14 Jun 2022

Global government IT spending is forecast to increase 5% year-on-year to US$565.7 billion in 2022.

In a statement on Monday (June 13), technology and consulting firm Gartner Inc director analyst Daniel Snyder said the last few years of enduring pandemic challenges have mobilised a wave of digital transformation activities in government organisations across the world.

Gartner said that in 2022, government IT spending is forecast to increase across all segments except internal services and telecom services.

It said continuing the trend from 2021, software is forecast to record the strongest growth across all segments in 2022.

It said as legacy modernisation continues to be a priority in government organisations, growth in the data center systems segment will continue to slow through the forecast period.

Gartner said governments continue to invest in critical application software that directly support end-user interfaces driving strong growth in this segment.

It said spending on telecom services is set to decrease in 2022 as governments reduce spending on expensive legacy systems in favour of digital service delivery models.

The firm said anything-as-a-service (XaaS) is gaining popularity across government organisations as it provides better return on investment, normalising IT spend over time, making budgeting for IT more predictable while avoiding the accrual of technical debt.

Gartner predicts that by 2026, most government agencies’ new IT investments will be made in XaaS solutions.

Snyder said the pandemic sped up public-sector adoption of cloud solutions and the XaaS model for accelerated legacy modernisation and new service implementations.

“Fifty-four percent of government CIOs responding to the 2022 Gartner CIO Survey indicated that they expect to allocate additional funding to cloud platforms in 2022, while 35% will decrease investments in legacy infrastructure and data center technologies,” he said.

Worldwide Government IT Spending, 2021-2022 (Millions of US Dollars)

 2021 Spending2021 Growth (%)2022 Spending2022 Growth (%)2023 Spending2023 Growth (%)
Data Center Systems25,0857.326,1374.226,6421.9
Internal Services68,241-2.168,188-0.170,7673.8
IT Services191,84110.7204,2066.5220,9978.2
Telecom Services69,1901.167,102-3.067,1930.1

Source: Gartner (June 2022)

Source: The Edge Markets