Knowledge management news and trends
19.4.05
  DHS military spur IT growth
DHS military spur IT growth: "The Homeland Security Department and the Pentagon are the main drivers behind federal IT spending growth, but systems integrators can still expect to see the Office of Management and Budget exerting pressure to control spending.

From 2005 to 2010, the federal IT budget will grow at an annual rate of 5.3 percent to $91.4 billion in fiscal 2010 from $70.7 billion in fiscal 2005, according to the market research firm Input Inc. of Reston, Va.

Of the $91.4 billion in 2010, $78.6 billion will go to contractors, compared to $59 billion in 2005, Input said. The contracted portion will grow at an annual clip of 5.9 percent.

The civilian IT budget will grow by 5.5 percent annually to $33.1 billion in fiscal 2010 from $25.4 billion in 2005. The defense IT budget will grow by 6.1 percent annually to $28.3 billion in 2010 from $21.1 billion.

DHS has been a primary recipient of budget increases since it's creation in 2003. The department will have $4.4 billion in contracted IT spending in fiscal 2005 and is projected to have $6.4 billion in 2010, although department spending will level off in fiscal 2007, Input said.
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