Australian government sector IT spending is forecast to exceed $13 billion in 2021, an increase of 6.2 per cent from 2020, according to Gartner.

The majority of the spend will go to IT services and software, around $5.5 billion and $3.4 billion respectively.

Gartner’s figures include all levels of government – federal, state and local – but does not include the education sector.

“Public health and safety measures, including vaccinating citizens, are the top concern for public sector organisations in Australia, pushing them to continue to accelerate their digital transformation,” said Brian Ferreira, vice president, executive programs at Gartner.

“Most technology spend is now linked to digital programs, for example, cybersecurity and digital identity programs.”

Source: Gartner analysis if government sector technology spending.

There will be more strong growth in device spending by governments this year, Gartner says, after the category jumped 7.4 per cent last year as many public sector workers transitioned to remote.

“We’re seeing the public sector changing IT operating models and innovating at a quicker pace by adopting commercially available technology solutions and software – particularly software as a service,” said Ferreira

“Government budgets will continue to address recovery and growth needs of communities and businesses in 2021. In addition, investments to address digital equity and access to remote government services will be prioritised.”

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