State and local spending on IT will increase several billion dollars over the next five years, predicts British data research firm Datamonitor. A recent study, IT Opportunities in State and Local Government (PDF), finds that public safety, transportation and health and human services will push IT spending up from $55 billion today to $62.4 billion in 2009.
Spending on hardware and networks will fall over this period, being replaced by software and services. Falling hardware prices, staff reductions and increased interest in e-government are among the reasons.
Washington Technology quotes the report's author, Kate McCurdy: “State and local governments are investing in technology in response to public and media attention on their capabilities to handle emergency situations and support community protection on an ongoing basis.