Global government IT spending is expected to total $589.8 billion by 2023, a 7.6 percent increase over 2022, according to leading management consulting firm Gartner.
“Global challenges such as inflation and labor shortages and their local impact are testing the ability of government CIOs to respond with appropriate service delivery mechanisms and organizational accountability,” said Apeksha Kaushik, principal analyst at Gartner.
“Additionally, the ‘Great Resignations’ and competing demands in the business sector are forcing the government to re-examine its approach to dealing with internal talent shortages.”
Government organizations will continue to commit to investing in digital projects through 2023. “Governments are increasingly spending IT budgets to replace legacy applications. Gartner’s 2023 CIO and Technology Executive Survey shows that 57% of government CIOs plan to increase funding for application modernization in 2023, up from 42% in 2022. %,” Kaushik said.
This year, they will also ensure their digital projects can withstand mission impacts. A growing number of government agencies have developed at least one numerical metric that directly links to outcomes related to their organization’s public purpose or mission. By 2026, Gartner predicts that more than 75 percent of governments will measure digital transformation success by measuring lasting mission impact.
Software will remain the highest spender through 2023
Software will continue to be the fastest growing segment in 2023 through 2023. Application modernization investments will increase on the back of more software-as-a-service based solution offerings. The use of low-code application platforms (LCAPs) is also increasing and will further accelerate traditional modernization efforts.
Government spending on IT services will continue unabated through 2023. “With many governments facing IT talent shortages, salary constraints and limited resources to attract and retain IT talent are becoming bigger challenges today,” Kaushik said.
To continue modernizing and innovating critical IT infrastructure and applications, some government organizations will adopt a multi-sourced workforce by optimizing the use of internal IT talent and investing in employee experience tools to support and stimulate innovation, as well as partnering with external IT service providers Strategy accelerates time to value.
Throughout 2023, government organizations will continue to invest in initiatives to improve access to digital services, as constituents increasingly demand an experience comparable to online customers.
While digital transformation remains a top priority for government, some government CIOs say they are failing to get the most out of their digital investments. “Government CIOs are moving beyond scaling digital solutions across their critical services, they are ensuring that further investments in digital solutions can directly impact how they achieve their organization’s mission or public purpose,” Kaushik said. trade arab news agency