Ramona Adams
A new report by Deltek forecasts that federal spending on information technology products and services will reach $99.5 billion at the end of fiscal year 2017 and increase to $104.9 billion in FY 2022.
Deltek said Friday it expects the Trump administration and Congress to renegotiate budget caps through the end of fiscal year 2021 or for the next two fiscal years.
The White House also looks to repeal certain IT policies as part of efforts to simplify the procurement process and make additional funding resources available, according to the report.
“The Trump Administration has begun to lay the groundwork for an IT reform agenda that could both drive and inhibit IT spending,” Deniece Peterson, director of federal market analysis at Deltek.
“That agenda relies largely on IT infrastructure modernization, so whatever form a centralized modernization fund takes — whether via the Modernizing Government Technology Act or the Technology Modernization Fund proposed in the FY 2018 budget — it will be critical to moving agencies forward in everything from cloud and cybersecurity to analytics and automation,” Peterson added.
Deltek also predicts that the creation of a centralized IT working capital fund will speed up modernization efforts across the government.
The report noted that cloud computing, data center optimization, cybersecurity, big data and infrastructure modernization will remain as key priority areas for agencies through FY 2020.
Trump’s order to conduct a governmentwide evaluation of operational processes and workforce balance could also present opportunities and challenges for industry, the report added.
