State and local IT spending is on the rebound

A growing demand for outsourced technical services will drive significant increases in state and local IT spending over the next five years, according to a forecast by the market research firm Input of Reston, Va.

State and local spending is expected to grow by 45 percent over the next five years, from $48 billion in fiscal 2005 to $70 billion by fiscal 2010, Input said late last month at its MarketView 2005 Conference in Falls Church, Va.

The state and local market will experience moderate growth in IT investments this year and through fiscal 2006, the forecast report said. Beginning in 2007, the need for outsourced IT services, primarily caused by increased employee retirements, will drive increased spending through 2010.

The leading market segment in state and local IT spending will continue to be professional services, followed by telecommunications and networks.

About the Author

William Welsh is a freelance writer covering IT and defense technology.

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