Australian government IT spending to grow 6.2% in 2021

Australian government sector IT spend is on track to grow 6.2% this year to $13.26 billion as government organisations continue to embrace remote work and connected public services, according to Gartner.

Spending is tracking to increase across all categories, with the biggest growth expected to be seen in software, which is set to experience another year of double-digit growth. Gartner predicts spending will increase by 10.5% to $3.39 billion, which compares to a 14.1% growth in 2020.

Meanwhile, data centre spending is expected to rebound from a 5% decline in 2020 to grow 7.4% to $426 million in 2021.

Telecom services spending is likewise expected to recover from a 2.4% decline in 2020 to grow 7.1% to $741 million this year.

The remote work boom will meanwhile see device spending grow 4.3% to $563 million, with IT services spending up 5.7% to $5.58 billion and internal services spending up 1.8% to $2.56 billion.

“Public health and safety measures, including vaccinating citizens, are the top concern for public sector organisations in Australia, pushing them to continue to accelerate their digital transformation. Most technology spend is now linked to digital programs, for example, cybersecurity and digital identity programs,” Gartner VP for Executive Programs Brian Ferreira said.

“We’re seeing the public sector changing IT operating models and innovating at a quicker pace by adopting commercially available technology solutions and software — particularly software as a service. Government budgets will continue to address recovery and growth needs of communities and businesses in 2021. In addition, investments to address digital equity and access to remote government services will be prioritised.”

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