Federal technology spending will shrink under the Trump administration (0.1% in 2017 and 0.6% in 2018), while state and local government spending will increase by 3% to 4% in 2017 and 2018. This is according to Forrester’s new government sector tech spending outlook, which also reveals year-over-year growth since 2013 in regard to federal versus state spending, with Forrester’s forecast for 2016 to 2018 (see the graphic below).
In this outlook, Forrester digs into the areas of tech that will drive this growth, with an increased reliance on contractors, technology staff, and the migration to the cloud topping the list. In particular, the federal government will embrace public cloud more aggressively — Forrester found that some federal agencies have made more progress than others already, including The National Archives and Records Administration and the US Agency for International Development, where cloud will account for 12% and 10%, respectively, of total tech spending in 2017.
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