According to Gartner estimates, IT spending by governments will reach 588.9 billion dollars in 2023 worldwide, which represents an increase of 6.8% compared to 2022.
According to the consultancy, the modernization of legacy systems and the improvement of access to critical services will be the main drivers of the government IT spending throughout the next year.
As Gartner director and analyst Daniel Snyder argues, government organizations continue to modernize their legacy IT and invest in initiatives that improve access to digital services as citizens increasingly demand experiences equivalent to the online interactions they experience with private sector companies.
“The Total Experience (TX) framework, which helps agencies manage employee-citizen interactions, is enabling transformation and will continue to be a major driver of IT spending in 2023.”
In addition to improving citizen experience and engagement, a total experience strategy will help governments promote digital skills and literacy among employees. It will do this by providing modern tools and approaches that help increase service friction, creating risks of service delays and potentially disappointing service experiences.
With all this, government IT spending is expected to increase in all segments except device by 2023, as government end-users extend the life of devices they purchased at the start of the pandemic.
Software will be the fastest growing segment next year, followed by IT services and internal services.
Initiatives like cloud service migrationapplication modernization and strengthening network security are among the top innovation priorities governments are focusing on to improve citizen engagement and satisfaction.
The New IT Spending Priorities of Government CIOs
Government CIOs will prioritize improved data use and digitization across all organizations.
According to the Gartner 2023 Survey of Technology Executives and CIOs, digital transformation, harnessing and using data effectively and technology modernization will be the top three priorities for government CIOs.
Government CIOs will need to address digital transformation concerns with their mission objectives
Delivering on these priorities will depend on establishing a shared digital vision across the organization and integrating that vision into business-wide strategies. In line with these priorities, investments in cybersecurity, application modernization, cloud platforms, integration Technologys such as Artificial Intelligence (AI) and machine learning, as well as business and data analysis tools.
At the same time, CIOs will have to face challenges such as varying stakeholder expectations and developing action plans. That is why Gartner points out that government CIOs should address the concerns of digital transformation with the objectives of its mission.
They will also need to work closely with government leaders to ensure a shared understanding of the vision, roadmap, and link to mission-critical priorities.
initial image | Josh Apple