IDC: Defense IT Spending to See 1.6% Increase in FY 2016 to $30B

A new report by International Data Corp. projects Defense Department spending on information technology to grow at a 0.5-percent compound annual growth rate from fiscal year 2014 to fiscal year 2019.

The company said Tuesday its latest IDC Government Insights report indicates that the forecasted 1.6-percent increase in defense IT spending from $29.9 billion in fiscal 2015 to $30.5 billion next fiscal year follows a multiyear decline.

“The increases show slightly more spending targeted to cloud solutions and more spending targeted to security improvements,” said Shawn McCarthy, research director for IDC Government Insights.

“Beyond 2017, we don’t expect to see growth to be quite as robust as what we have seen between 2014 and the proposed 2016 budget year for DoD agencies.”

The report also pointed to DoD-wide services for common enterprise IT solutions as an area for growth opportunities during the forecast period.