Gartner forecasts worldwide government IT spending to total $483 billion in 2021, an increase of 5.1% from 2020.
Irma Fabular, senior research director at Gartner, said government organizations continue to be challenged with the appropriate level of interventions to respond and recover from the COVID-19 pandemic.
“Public health and safety measures, including vaccinating citizens are of paramount concern, which necessitates governments to continue to accelerate their digital transformation journey,” she added.
Three segments are on pace to exceed the overall market growth in 2021. The software segment, which includes application, infrastructure, and vertical-specific software, will experience the strongest growth in 2021.
“Governments are innovating at a quicker pace by adopting commercially available technology solutions for operational and mission critical needs,” said Fabular.
“We are seeing innovative use of technology and data to control and respond to the pandemic, as well as provide financial and humanitarian assistance.”
As government organizations continue to embrace remote work and hyperconnected public services, spending on devices is expected to grow 5.6% in 2021, up from 1.6% growth in 2020 (see Table 1).
Table 1. Government IT spending forecast by segment, 2020-2021, worldwide (millions of U.S. dollars)
| 2020 Spending | 2020 Growth (%) | 2021 Spending | 2021 Growth (%) | |
| IT Services | 160,043 | 4.8 | 168,639 | 5.4 |
| Software | 108,212 | 8.9 | 118,149 | 9.2 |
| Telecom Services | 63,935 | -0.5 | 67,200 | 5.1 |
| Internal Services | 63,927 | 1.0 | 62,423 | -2.4 |
| Devices | 33,029 | 1.6 | 34,875 | 5.6 |
| Data Centre | 30,279 | 5.7 | 31,514 | 4.1 |
| Total | 459,425 | 4.2 | 482,800 | 5.1 |
“The COVID-19 pandemic exposed weaknesses in the ability of government organizations to quickly respond, scale and secure essential services. Lessons learned from the responses by government organizations provide the impetus to increase resiliency and build for a stronger future for its citizens and businesses,” said Fabular.
In 2021, government budgets will continue to address the recovery and growth needs of communities and businesses. In addition, investments to address digital equity and access to remote government services will be prioritized.
