Australian Government IT spending to reach $13 billion: Gartner

Government IT spending in Australia is forecast to reach more than $13 billion in 2021 with all segments set to see increases compared to last year.

Research from Gartner revealed that IT spending in federal, state and local Governments is predicted to increase 6.2 percent from 2020.

After declines in data centre and telecommunications spending last year, all segments are forecast to grow in 2021. Software, which includes application, infrastructure and vertical-specific software, will see the biggest boost at 10.5 percent.

Devices will also see an increase in spending, particularly on PCs and smartphones as agencies continue to embrace remote work and connected public services.

“Public health and safety measures, including vaccinating citizens, are the top concern for public sector organisations in Australia, pushing them to continue to accelerate their digital transformation,” Gartner vice president of executive programs Brian Ferreira said.

“Most technology spend is now linked to digital programs, for example, cybersecurity and digital identity programs.”

“We’re seeing the public sector changing IT operating models and innovating at a quicker pace by adopting commercially available technology solutions and software – particularly software as a service," Ferreira continued.

“Government budgets will continue to address recovery and growth needs of communities and businesses in 2021. In addition, investments to address digital equity and access to remote government services will be prioritised.”