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Vaccine programs driving increase in government IT spending

digital transformation
(Image credit: Image source: Shutterstock/Wichy)

As vaccine rollouts gather pace, laying the foundation for economic recovery, governments around the world will look to speed up their digital transformation initiatives and prepare for an increasingly software-oriented future.

This is according to a new report from analyst firm Gartner, which claims governments worldwide will spend more on software and remote working solutions, such as collaboration tools.

Gartner predicts a total of $483 billion will be spent by governments on IT in 2021, up 5.1 percent year-on-year. Software spending, which includes application, infrastructure and vertical-specific software, will see the greatest growth: 8.9 percent.

Data center and device segments will also record strong growth this year, of 4.1 percent and 5.6 percent respectively. The only segment expected to shrink this year is internal services.

Governments will continue to address recovery and growth needs of both communities and businesses, the report added, with digital equity and access to remote government services becoming be a priority.

“The COVID-19 pandemic exposed weaknesses in the ability of government organisations to quickly respond, scale and secure essential services,” said Irma Fabular, Senior Research Director at Gartner. “Lessons learned from the responses by government organisations provide the impetus to increase resiliency and build for a stronger future for its citizens and businesses.”