Here's the Technology Government Needs in 2021

Source: GovTech Published: March 2nd, 2021

Tech executives from around the country met online last week during the annual Beyond the Beltway event to get a market forecast from industry experts about the IT spending challenges and opportunities facing state and local governments in 2021. 

One of the challenges at the forefront of the discussion was the impact of COVID-19 and how the pandemic contributed to state and local budget shortfalls last year. Despite these challenges, data shared during the event by the Center for Digital Government* suggests that an increase in IT spending is likely to occur over the course of the next few months. 

“The most likely scenario is a 7 percent growth in IT spending, topping out at $118.7 billion,” Joe Morris, e.Republic’s vice president of research said. 

Based on these figures, Morris broke down specific IT spending projections for different verticals within the state and local government market. 

  • Education: $31.8 billion

  • Health and Human Services: $31.5 billion

  • Transportation: $14 billion

  • Justice and Public Safety: $10.8 billion

  • Finance and Administration: $10.5 billion

  • Utilities: $9.8 billion

  • Environment and Housing: $8.4 billion

“The worst of the financial impacts have been felt by economies heavily supported by tourism, hospitality and low-income earners,” Morris said. “If your revenue is primarily coming through sales tax, hospitality or tourism, you could be looking toward a much longer road to recovery.”

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Photo by Scott Graham on Unsplash

Chelsea McCullough