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Report: Federal IT Spending to Make Modest Gains in Next 5 Years

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Federal spending on IT is expected to grow over the next few years — but only modestly, according to a new survey by an industry group.

By 2016, TechAmerica estimates federal spending will reach $91.3 billion, which is an increase from $79.6 billion for 2011, InformationWeek reports.

The increases in federal IT spending will likely be driven by existing initiatives such as cybersecurity, citizen engagement efforts and health IT, according to InformationWeek.

And while the gains are limited, in the current economic climate, even modest growth is likely promising for the IT sector.

Several agencies are looking to expand their IT spending. Among the agencies leading the pack are the Health and Human Services Department with five-year growth rate of 5.8 percent and the Treasury Department with 4.8 percent growth over five years, InformationWeek reports.

One of the other drivers of federal IT growth will be spending by the Defense Department. Even though DoD will cut spending overall, its share of IT spending will actually increase.

So while the Pentagon is cutting spending overall by 1.1 percent over the next five years, defense IT spending is expected to increase by 1.8 percent to $40.3 billion from just under $37 billion now.

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