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Gartner: Government Spending Lags on Digital Initiatives

Governments around the world, including the UK, are spending a lower percentage of their IT budgets on digital initiatives when compared with the private sector, or other parts of the public sector, according to a new report by Gartner.

Based on a worldwide survey of 2,598 CIOs from 93 countries, responsible for $292 billion in IT spend, Gartner concludes that government organisations are spending 21 per cent of their IT budget on digital initiatives. This is considerably less than top-performing organisations in the private and public sectors who spend a third of their IT budget on digital. This is likely to increase to 43 per cent in 2018 compared with 28 per cent for government CIOs.

For this year, Government CIOs anticipate a 1.4 percent average increase in IT budgets, compared with an average 2.2 percent increase across all industries. Local government CIOs fare better, averaging 3.5 per cent growth, but this is still considerably less than the expected IT budget growth among top-performing organisations as a whole (4.6 percent).

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