Tech spending hurt this year by Congress

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Tech spending in the US will increase by a smaller amount than earlier predicted, Forrester Research said. And it is blaming Congress for the forecast decline. Instead of rising 5.7 percent, tech spending will increase by just 3.9 percent, Forrester said.

The federal budget sequester, the government shutdown and the threat of default "has had negative impacts on the economy, has had direct negative impacts on federal tech buying, and has indirect impacts elsewhere on CIOs who simply became cautious," said Andrew Bartels, a Forrester analyst. In terms of dollars, Forrester expects total US private and public spending on technology to be about $1.243 trillion in 2013; the 2012 figure was $1.195 trillion. Sequestration, and federal spending cutbacks in general are having a major impact on federal IT buying, the TechAmerica Foundation said. Federal IT spending has declined from a peak of $80 billion in 2010 to $70 billion in the fiscal year that began Oct. 1, 2013.


Tech spending hurt this year by Congress