According to a new report by TechAmerica, federal IT budgets will only grow 3.4% in the next 5 years. This is a significant drop from the 8.3% growth rate from 2005 to 2010.
The estimates for the decrease in growth rate are influenced by the percentage of the federal deficit through 2020. The Department of Justice, the Treasury and the Department of Health and Human Services are expected to have the largest growth rate, while the Department of Commerce is expected to drop the most. The drop in spending will mean that contractors will be expected to produce effective products for less. Much of the available funding will likely be used to finance Web 2.0, cyber security, technology modernization, increased mobility and cloud computing services.