Billions Less in IT Spending, Experts Predict
October 17, 2012
An annual industry forecast projects agencies will spend billions of dollars less on information technology over the next five years than it projected a year ago.
While the new estimates show slight increases in annual IT spending, they are roughly $10 billion less each year compared with last year’s forecast, in part because of anticipated deficit reduction measures.
TechAmerica Foundation, in developing the forecast, assumes Congress and the White House will agree on a modified sequestration plan, requiring $1.4 trillion cuts through 2021 but not the automatic, across-the-board cuts sequestration would require beginning Jan. 2. Last year’s estimate did not consider sequestration.