Page 36 - EngineerIT July 2022

TECHNOLOGY AND INNOVATION

Gartner forecasts worldwide implementations,” said Snyder. “Fifty-four
per cent of government CIOs responding
government IT spending to to the 2022 Gartner CIO Survey indicated
that they expect to allocate additional
grow 5% in 2022 funding to cloud platforms in 2022,
while 35% will decrease investments in
legacy infrastructure and data centre
technologies.”
orldwide government IT Anything-as-a-Service model With the ongoing talent challenges
spending is forecast to total emerges as pay-as-you-use gains facing organisations, XaaS makes it easier
W$565.7 billion in 2022, an momentum for government organisations to find the
increase of 5% from 2021, according Anything-as-a-Service (XaaS) is right talent via XaaS operating models.
to Gartner, Inc. “The last few years gaining popularity across government XaaS delivery models require different
of enduring pandemic challenges organisations as it provides a better internal IT skill sets and place less
have mobilised a wave of digital return on investment, normalising IT demand on the organisation to develop
transformation activities in government spend over time and making budgeting or acquire emerging IT skills, which
organisations across the world,” said for IT more predictable, while avoiding are often hard to find and difficult for
Daniel Snyder, director analyst at the accrual of technical debt. Gartner governments to afford.
Gartner. “Governments are executing predicts that by 2026, most government
innovative activities by harnessing agencies’ new IT investments will be Learn more about key government
technology to streamline digital made in XaaS solutions. technology trends in the complimentary
services, advance automation processes “The pandemic sped up public Gartner ebook Top Technology Trends in
and evolve citizen experiences.” sector adoption of cloud solutions Government for 2022.
In 2022, government IT spending is and the XaaS model for accelerated Visit the IT Newsroom for more
forecast to increase across all segments legacy modernisation and new service information and insights.
except internal services and telecom
services. Continuing the trend from
2021, software is forecast to record the
strongest growth across all segments
in 2022. As legacy modernisation
continues to be a priority in
government organisations, growth in
the data centre systems segment will
continue to slow though the forecast
period (see Table 1).
Governments continue to invest
in critical application software that
directly supports end user interfaces,
driving strong growth in this segment.
Spending on telecom services is set
to decrease in 2022 as governments
reduce spending on expensive legacy
systems in favour of digital service
delivery models.

Table 1. Worldwide Government IT Spending, 2021-2022 (Millions of US Dollars)
2021 Spending 2021 Growth (%) 2022 Spending 2022 Growth (%) 2023 Spending 2023 Growth (%)
Data Centre Systems 25,085 7.3 26,137 4.2 26,642 1.9
Devices 37,484 13.0 37,823 0.9 37,389 -1.1
Internal Services 68,241 -2.1 68,188 -0.1 70,767 3.8
IT Services 191,841 10.7 204,206 6.5 220,997 8.2
Software 146,952 16.9 162,278 10.4 183,012 12.8
Telecom Services 69,190 1.1 67,102 -3.0 67,193 0.1
Total 538,793 9.1 565,734 5.0 606,000 100.0
Source: Gartner (June 2022)

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