Pandemic-driving spending boosts in information technology budgets at civilian agencies are expected to end in the coming years according to the Professional Services Council, a trade group representing leading federal contractors. It is expected that there will be an almost 20% reduction in budgets for IT at civilian agencies.
Overall federal IT spending is expected to take a 10.3% drop next year, and this number includes a 0.5% drop in DOD tech spending. Cuts are expected across the federal civilian enterprise over the next few years, but spending cuts in IT are expected to be less drastic than cuts in other areas and overall spending reductions. IT is expected to recover more quickly than overall spending levels.