Federal IT Spending Drops Slightly Against 2012 Requests

by Stephanie Sullivan, Consultant

Federal IT spending requests overall have dropped $1 billion over FY 2012 levels. The 2013 Federal IT budget request is approximately $78.9 billion—down slightly from last year’s $79.7 billion—but the continuing resolution and potential sequestration will most likely lower IT spend to between $73 to $74 billion.

Agencies are emphasizing cost savings through value measurement, process improvement, elimination of redundancy, and new technologies to improve operations. The budget reductions can be attributed to a government-wide shift toward enterprise agreements and IT management reform.

As a result, a few key drivers have emerged in civilian agency spending: the Digital Government Strategy and cloud computing.  Under the Digital Government Strategy, agencies are becoming more information-centric and are shifting from managing “documents” to managing discrete pieces of data and content. There is an additional emphasis on shared platforms to reduce costs, streamline development, standardize practices, and ensure consistency. This will allow for a more customer-centric environment where end-users can shape, share, and consume information as they want. The aforementioned initiatives introduce security and privacy issues to which contractors have become increasingly sensitive.

Cloud computing is also continuing to gain momentum throughout government. Agencies are working to implement policies and contracting procedures to enhance its ability to move services such as email, data storage, and customer analytics to the cloud. The Office of Management and Budget is requiring agencies to itemize their cloud computing initiatives in fiscal 2014 budget plans.

If you would like to learn more about the FY13 budget request for civilian agencies, you can watch an on-demand replay of a recent briefing I conducted: the FY13 Civilian Budget Briefing. It contains details on major funded programs, budget requests, and key contacts within the agencies. The information provided in this on-demand recording is critical to anyone selling to civilian agencies.

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