Gartner forecasts that government spending on information technology products and services across the globe will climb by 7.6 percent year-over-year to $589.79 billion in 2023 as more agencies are prioritizing digital transformation projects.
The software segment is projected to maintain its position as the IT market’s highest-spending area for agencies worldwide with an estimated 13.5 annual increase to $183.73 billion, Gartner said Wednesday.
Software-as-a-service platforms will drive public sector investments to modernize applications, according to the research company.
Apeksha Kaushik, principal analyst at Gartner, said government chief information officers respond to inflation, talent shortage and other global challenges by adopting service delivery and organizational accountability measures.
The company reports worldwide government IT spending amounted to $548.36 billion in 2022, a 2.9 percent increase from the prior year, and predicts more than 75 percent of governments will use digital projects’ mission impact as a measurement of modernization success by 2026.