Modernizing legacy systems and improving access to critical services will be the main drivers of government IT spending
O Gartner, a world leader in business research and advice, predicts that government spending on IT worldwide is expected to reach US$ 588.9 billion in 2023, which represents an increase of 6.8% compared to 2022.
“Government organizations continue to modernize legacy IT infrastructure and invest in initiatives that improve access to digital services, as citizens continue to demand experiences similar to the online interactions they have in the private sector,” said Daniel Snyder, Director Analyst from Gartner. The Total Experience (TX) framework Total Experience), which helps agencies manage interactions between employees and citizens, is enabling the transformation and will remain among the top drivers of IT spending in 2023, according to the analyst.
In addition to improving citizen experience and engagement, a cohesive Total Experience strategy will help governments improve their digital skills and make their workforces more literate by providing modern tools and approaches to reduce friction in the work of government. Failure to build a solid Total Experience strategy will increase service friction, leading to the risk of delays and suboptimal experiences.
In 2023, government IT spending is forecast to increase in all segments except devices, as government end users are extending the useful life of their equipment purchased at the start of the pandemic. Thus, software will be the fastest growing segment in 2023, followed by IT services.
Initiatives such as migrating services to cloud environments, modernizing applications and strengthening network security are among the top innovation priorities that governments are focusing on to improve user engagement and satisfaction.
Government IT leaders will prioritize improved data use and digitization – According to the latest Gartner survey of Chief Information Officers (CIOs) and Technology Executives for 2023, digital transformation, leveraging and effectively using data, and modernizing technology are the top three priorities for IT leaders of governments.
“Delivering on these priorities depends on establishing a shared digital vision across the organization and integrating that vision into enterprise-level strategies,” says Apeksha Kaushik, Analyst at Gartner. In line with these priorities, investments will increase in cybersecurity, application modernization, Cloud platforms, integration technologies such as Artificial Intelligence (AI) and Machine Learning (Machine Learning) and business and data analysis tools, says the analyst.
At the same time, CIOs will face challenges such as changing stakeholder expectations and developing appropriate action plans. “Executives responsible for IT in government will need to address digital transformation concerns with the mission objectives of their organizations and users. Therefore, it is recommended to work collaboratively with government executives to ensure a shared understanding of the vision, roadmap and link to mission-critical priorities”, highlights Kaushik.
