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Gartner Forecasts Australian Government Sector IT Spending to Grow 8.8% in 2022

Announcement posted by Gartner 01 Sep 2021

Software Spending to Maintain Double-Digit Growth in 2022

Sydney, 1 September 2021 — Australian government sector IT spending is forecast to exceed A$15.5 billion in 2022, an increase of 8.8% from 2021, according to the latest forecast by Gartner, Inc.

“Government technology spend in Australia is expected to continue upward for the next few years driven by key programs to progress the digital economy, strengthen national cyber response, adopt emerging technologies and address gaps in regulation to cover technology,” said Brian Ferreira, vice president, executive programs at Gartner. “Consultation papers on AI, ethics, technology and human rights, blockchain and other emerging technologies are now firmly on the Government’s radar.”

In 2022, increased investments in digital technologies will see governments in Australia spend 72% of total IT spending on IT services and software to improve responsiveness and resilience of public services (see Table 1). These include investments in enhancing customer and employee experience, strengthening analytical capabilities and scaling operational agility.

Table 1. Government IT Spending Forecast by Segment, 2021-2021, Australia (Millions of Australian Dollars)

Segment

 

2021

Spending

2021

Growth (%)

2022

Spending

2022

Growth (%)

IT Services

6,001

7.0

6,435

7.2

Software

3,935

14.7

4,689

19.2

Telecom Services

665

-1.0

659

-1.0

Internal Services

2,571

0.9

2,669

3.8

Devices

685

15.0

651

-5.0

Data Centre

408

0.5

425

4.1

Total

14,266

7.6

15,528

8.8

Source: Gartner (August 2021)

IT infrastructure and applications modernisation as well as digital government transformation will remain high government priorities in 2022. In Australia, the $1.2 billion Digital Economy Strategy announced in this year’s Federal Budget aims to support investments in emerging technologies and digital skills to advance Australia’s position as a modern digital economy by 2030.

“As the Delta variant continues to create hurdles, government spending will increase on solutions to open up the Australian economy while we continue to live with COVID-19, particularly to drive vaccination validation, open up borders and unblock trade,” said Ferreira.

Increased Adoption of Cloud Strategies and Citizen Digital Identity

The pandemic has amplified the need for governments to rapidly scale IT infrastructure and application systems and respond to unprecedented public demands. Gartner estimates that by 2025, over 50% of government agencies will have modernised critical core legacy applications to improve resilience and agility.

“Key national technology capabilities, whole-of-government cloud and SaaS procurement agreements and digital skills have progressed at a federal level within Australia,” said Ferreira. “We have also seen a strengthening digital mandate in ministerial roles with cross federal/state collaboration at a state level.”

Gartner clients can get more information in “Forecast: Enterprise IT Spending for the Government and Education Markets, Worldwide, 2019-2025, 2Q21 Update.”

Additional analysis on how government CIOs will reinvent programs and service delivery will be presented during Gartner IT Symposium/Xpo 2021, the world's most important conferences for CIOs and other IT executives. IT executives rely on these conferences to gain insight into how their organisations can use IT to overcome business challenges and improve operational efficiency. Follow news and updates from the conferences on Twitter using #GartnerSYM.

Upcoming dates and locations for Gartner IT Symposium/Xpo include:

October 18-21| Americas| Virtual

October 25-27| APAC| Virtual

November 8-11| EMEA| Virtual

November 16-18| Japan| Virtual

November 30-December 2| India| Virtual

About Gartner for High Tech

Gartner for High Tech equips tech leaders and their teams with role-based best practices, industry insights and strategic views into emerging trends and market changes to achieve their mission-critical priorities and build the successful organisations of tomorrow. Additional information is available at www.gartner.com/en/industries/high-tech. Follow news and updates from Gartner for High Tech on Twitter and LinkedIn using #GartnerHT.

About Gartner

Gartner, Inc. (NYSE: IT) is the world’s leading research and advisory company and a member of the S&P 500. We equip business leaders with indispensable insights, advice and tools to achieve their mission-critical priorities and build the successful organisations of tomorrow.

Our unmatched combination of expert-led, practitioner-sourced and data-driven research steers clients toward the right decisions on the issues that matter most. We are a trusted advisor and objective resource for more than 14,000 enterprises in more than 100 countries — across all major functions, in every industry and organisation size. 

To learn more about how we help decision makers fuel the future of business, visit www.gartner.com.


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