Spending on information technology goods and services by Defense Department agencies excluding the military services will record a negative growth rate of 0.2 percent from fiscal year 2016 to 2021, according to Deltek research analyst Alex Rossino.
Rossino wrote in a blog post published Wednesday the firm’s “Federal Information Technology Market, 2016-2021 Forecast Report” has predicted a decline from $11.5 billion FY 2016 IT goods and services spending to a $10.4 billion budget allotment in FY 2021.
“Deltek forecasts that defense agency spending on commercially-provided IT hardware will decline the fastest, followed by communications and network services and IT services… spending on software is forecast to rise,” said Rossino.
Rossino noted DoD’s cloud purchases as a potential area of high activity because of the Defense Information Systems Agency plans to integrate its enterprise services on a multi-phased cloud system to support the presidential IT community as well as efforts to compete for defense enterprise office contracts to replace defense enterprise email.
He added the defense agency will work to upgrade its defensive cyber posture through cybersecurity, healthcare, business intelligence and ISR data processing platforms as well as Defense Advanced Research Projects Agency applied research.