A recent study by Gartner is predicting that governments will spend more than half a trillion dollars on IT in the following year.
Indeed, public sector IT budgets would reach $557.3bn in 2022, including 64% of which will be dedicated to IT services and software in order to improve the responsiveness and resilience of public services. The world’s governments are expected to spend 21% more than what they did in 2020 by 2022.
As such, governments will keep on accelerating investments in digital technologies so as to respond and recover from the continuing evolution of public health uncertainties due to the COVID-19 pandemic. This will include investments in enhancing customer and employee experience, strengthening analytical capabilities, and scaling operational agility.
Moreover, it was reported that figures for software would increase by 12% in 2022 to reach $151.9bn, all the while spending on services would increase by 8% to hit $203.9bn over the same period. It is forecast that more than half of government agencies will have modernized their critical core legacy applications to improve resilience and agility by 2025.