New IDC Government Insights Report: Wild Ride Ahead for Some Federal Agency IT Budgets

FRAMINGHAM, MA – March 02, 2011 – IDC Government Insights today announced the availability of a new report, IT Spending in the 2012 US Federal Budget — Details by Agency (Document #GI227023), that discusses proposed decreases to spending on information technology (IT) by individual agencies of the United States Federal Government as high as 41%.

The proposed United States Federal Budget for fiscal year 2012, released by the Office of Management and Budget in February, totals $3.7 trillion and calls for a combination of tax increases and spending decreases, leading toward a plan to cut $1.1 trillion from the national debt by 2022. Based on preliminary data, the agency facing the largest proposed decrease to IT funding levels is the Department of Housing and Urban Development (HUD) with up to a 41% cut to IT funds, proposed to total $321.7 million. The overall proposed budget for this department is $623 billion, down from $695.6 billion last year.

While other agencies such as the Department of Education and the Office of Personnel Management (OPM) also face substantial decreases in proposed IT funding, some departments would see increases as high as 13%, including the State Department, the National Science Foundation, and the Transportation Department. Overall, the estimated proposed IT spending for FY 2012 shows a modest 0.2% growth over estimated FY 2011 spending, totaling $79.8 billion.

Other findings in the report include:

— The proposed budget for the Education Department shows a 38.2% drop in

the IT budget, from $1.0 billion in FY 2011 to just $655.4 million in

FY2012. However, IDC Government Insights analysts expect this spending

cut to be re-evaluated by the Obama administration in early March.

— The FY 2012 overall budget proposal would add up to 15,000 full-time

employees to the payroll in fiscal 2012.

— The budget proposes $18 billion in federal funds to connect roughly 98%

of the U.S. to the Internet via smartphones or tablet computers within

the next five years.

The report highlights overall spending figures, including both discretionary and mandatory budget data, with comparison to the prior fiscal years' figures, for selected federal agencies including the Departments of Commerce, Defense, Education, Energy, Social Security, and Transportation. The report also includes data on the portion of agency budgets that will be dedicated to information technology (IT) projects. Lastly, it includes IDC Government Insights' analysis on where overall federal IT spending shifts and trends are headed in the coming year.

Note: Because the FY 2011 IT budget was never approved by Congress, the percentage of cuts outlined by OMB can be misleading. To understand why cuts may not always be true cuts, read Research Director Shawn P. McCarthy's blog post on this topic, "Version Control" and the 2012 Federal IT Budget.

For additional information about this report, or to arrange a one-on-one briefing with Shawn McCarthy, please contact Sarah Murray at 781-794-3214 or sarahbethmurray@gmail.com. Reports are available to qualified members of the media. For information on purchasing reports, contact info@idc-gi.com; reporters should email sarahbethmurray@gmail.com.

About IDC Government Insights

IDC Government Insights is uniquely qualified to track, analyze, and forecast government technology spending based on in-depth government budget and spending analysis globally. Expert analysts examine IT value based on government-defined key result areas; decipher policy and regulatory goals to identify game-changing government strategies and inform critical decision making; survey government decision-makers to determine effectiveness of IT vendors' go-to-market strategies; along with government-centric metrics and rankings of suppliers' effectiveness in addressing specific government business problems, all with absolute independence and transparency. IDC Government Insights analysts are located in the Washington, D.C. area and other locations worldwide. International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology market. IDC is a subsidiary of IDG, the world's leading technology, media, research, and events company. For more information, please visit www.idc-gi.com [http://www.idc-gi.com], email info@idc-gi.com, or call 703-485-8300. Visit the IDC Government Insights Community at http://idc-insights-community.com/government [http://idc-insights-community.com/government].

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