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2009 Federal Spending on IT Review

In many ways 2009 was a difficult year that could not end fast enough. This holds true for government contractors in the IT products and services industry. There was a 21% drop in federal spending on IT compared to 2009, after 3 years of procurement  increases.

There are two possible explanations for these statistics. The first explanation is the most obvious, we are in a horrendous recession. However, with trillions of dollars available for stimulus spending, there should not have been a dip. The second explanation is that there was a change in executive office, therefore many top level positions changed leaders as well. This slows down any spending and/or budgeting activity because things are unsettled.

With the combination of these two explanations, we may be looking at the largest year in federal IT spending in history. Especially because President Obama has stated publicly that a major objective of his is the improvement and updating of government technology infrastructure.