Government IT Spending Patterns

An article on InterGovWorld caught my eye. A recent study from Input has identified government IT spending patterns, and it’s clear that the fourth quarter sees the majority of spending.

The US Government will spend nearly $22 billion on IT in the fiscal year, which ends September 30. This is a record amount to be spent on IT. 33% of that budget is spent in the fourth quarter, as agencies try to use up the remainder of their budgets. There is the mentality that if you don’t use the allotted budget, it will be reduced the next year. So, spending is accelerated as the fiscal year goes on.

The budget for the next fiscal year is often not approved right away, so there is a period of time in the first quarter where the spending is cut back due to the unclear budgetary means.

Although the study does not relate specifically to the allocation of IT spending, it would seem to me that the budgetary fluctuations could have a negative effect on IT spending. While the slow quarters allow time for planning, there is a rush during the spending quarters to max out the budget. Many decisions are initiated by vendor suggestions, and this could point to one of the issues regarding IT Security.

If decisions are not made as to the spending which will happen during the fiscal year, and for which exact products, the specific IT needs may be overshadowed by the rush. Decisions may be made based on the availability of, or presentation of, certain products by certain vendors. This is different than going into the spending process with a set plan of what to buy and from whom, in order to fulfill an IT need.

Vendors play a very important role in the process of IT spending, and are crucial to companies and agencies in understanding the changing IT landscape and their own needs, but the report here indicates an inefficiency in Government spending allocation that could result in a fractured IT strategy.

Tags: IT spending, government spending, IT, IT security, government security, budgets