This Government Insights' report is a 2008-2012 forecast for state and local (S&L) government information technology spending. We anticipate a very slight increase over our previous forecast but expect to see that growth flatten out by mid-2009 as the economic realities of the current economic slump take hold. Currently, that means 2009 state government IT spending of $14.6 billion and local government IT spending of $11.1 billion. "The state and local government market for IT solutions will...

This Government Insights' report is a 2008-2012 forecast for state and local (S&L) government information technology spending. We anticipate a very slight increase over our previous forecast but expect to see that growth flatten out by mid-2009 as the economic realities of the current economic slump take hold. Currently, that means 2009 state government IT spending of $14.6 billion and local government IT spending of $11.1 billion. "The state and local government market for IT solutions will remain healthy for a while," said Shawn P. McCarthy, Government Insights research director for Infrastructure Optimization and Government Vendor Programs. "Most states have preset IT budgets, and because many of them are on two-year budget cycles, we don't anticipate any immediate sea change in spending patterns." However, tight economic times can greatly influence local tax bases, so if the current crisis persists, then spending is likely to slow down, and the issue will need to be revisited in mid-2009.

Read more at: http://www.idc.com/getdoc.jsp?pid=23571113&containerId=GI214502.

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