Congressional Shenanigans Dent Tech Spending
Forrester Research is revising its projections for 2013 U.S. tech spending to be lower than it earlier predicted. Now, the researcher believes spending will increase by just 3.9 percent rather than 5.7 percent. The federal budget sequester, the government shutdown and the threat of default negatively impacted the economy and had indirect impacts on CIOs. Federal IT spending declined from a peak of $80 billion in 2010 to $70 billion during the fiscal year that began Oct. 1, according to the TechAmerica Foundation. In terms of hardware purchases, Forrester Analyst Andrew Bartels said that CIOs are moving peak loads and special projects to infrastructure-as-a-service providers rather than add capacity by buying new servers. Forrester predicts total U.S. private and public spending on technology will be about $1.243 trillion this year, compared to $1.195 trillion in 2012. However, Forrester is predicting better times ahead. It expects U.S. business and government purchases of IT goods and services to rise by 5.3 percent during 2014. The firm credits a revived housing market and a “modest improvement” in employment and consumer spending, as well as improved exports.