[January 27, 2004] Input Expects Recovery In State & Local It Spending U.S. State and Local Government spending on information technology products and services will recover at a compound annual growth rate of 8% from $46 billion in fiscal year 2004 to over $64 billion in fiscal year 2009 according to a new annual State & Local IT Market Forecast released by INPUT, the essential market intelligence resource for companies doing business with government. “The state and local IT market has weathered a difficult period over the past few years,” explains James Krouse, Manager of State & Local IT Market Analysis at INPUT. He adds, “Sustained economic growth, forced changes in state and local tax structures and an aging government workforce will help push the recovery of the state and local information technology market.” “In FY 2004 and 2005, market recovery will begin modestly, in-line with economic expansion, and will accelerate as governments replenish rainy day funds and expand the utilization of alternate funding methodologies for technology initiatives,” says Krouse. The forecast identifies professional services outsourcing, communications/networks, and software as the segments experiencing the highest growth rates in state and local spending while spending in traditional areas such as hardware and maintenance of legacy systems will remain relatively flat or decrease over the next five years. Krouse explains, “The increasing political receptivity of outsourcing has enabled government officials to move processes outside and to focus on core competencies in government administration.” He adds, “Communications and network spending will also remain strong given the increased necessity for interoperable homeland security and citizen-centric programs like eGovernment.” To download the complete executive summary of INPUT’s new State & Local IT Market Forecast FY 2004-2009, go to http://SLForecast.input.com. [ Back To TMCnet.com's Homepage ]