recommended reading

Agencies Spend Big to Transform Internal Processes, Report Finds

Melpomene/Shutterstock.com

On the cusp of the election, federal agencies are poised to spend more on digital transformation, a report shows.

Federal agencies are investing in cloud, software and endpoint security as they consider how to update internal operations, but they're less focused on using technology to change customer experience, according to analysis from market research firm Govini.

In fiscal 2016, annual cloud contract obligations reached $2.8 million, compared to $1.8 billion in fiscal 2011. Infrastructure-as-a-service offerings accounted for 36 percent of that. Software spending grew about 44 percent between fiscal 2011 and 2016, with end-user productivity programs accounting for almost half.

» Get the best federal technology news and ideas delivered right to your inbox. Sign up here.

Those programs "are designed to make tasks such as creating graphics, documents and data sets easier," the report said.

Spending on endpoint security reached $2.1 billion in fiscal 2016, about 22.4 percent more than the average over the last five years. Endpoint security software spending grew 61.4 percent in fiscal 2016 compared to the average of the last five years, topping $451 million.

Mobility spending, however, has slowed. The report found the mobility sector "experienced two years of decline after rebounding from sequestration in FY14, seemingly the opposite of what has taken place in the private sector."

"Citizen engagement agencies like [Health and Human Services Department] and Veterans Affairs Department] and [Homeland Security Department] have done a pretty good job of thinking about how they want to digitally transform their engagement" with citizens, author Matt Hummer told Nextgov. But across the board, tech spending was "limited to internal efforts for transforming internal processes within the agencies," he said.

Threatwatch Alert

Thousands of cyber attacks occur each day

See the latest threats

JOIN THE DISCUSSION

Close [ x ] More from Nextgov
 
 

Thank you for subscribing to newsletters from Nextgov.com.
We think these reports might interest you:

  • Modernizing IT for Mission Success

    Surveying Federal and Defense Leaders on Priorities and Challenges at the Tactical Edge

    Download
  • Communicating Innovation in Federal Government

    Federal Government spending on ‘obsolete technology’ continues to increase. Supporting the twin pillars of improved digital service delivery for citizens on the one hand, and the increasingly optimized and flexible working practices for federal employees on the other, are neither easy nor inexpensive tasks. This whitepaper explores how federal agencies can leverage the value of existing agency technology assets while offering IT leaders the ability to implement the kind of employee productivity, citizen service improvements and security demanded by federal oversight.

    Download
  • Effective Ransomware Response

    This whitepaper provides an overview and understanding of ransomware and how to successfully combat it.

    Download
  • Forecasting Cloud's Future

    Conversations with Federal, State, and Local Technology Leaders on Cloud-Driven Digital Transformation

    Download
  • IT Transformation Trends: Flash Storage as a Strategic IT Asset

    MIT Technology Review: Flash Storage As a Strategic IT Asset For the first time in decades, IT leaders now consider all-flash storage as a strategic IT asset. IT has become a new operating model that enables self-service with high performance, density and resiliency. It also offers the self-service agility of the public cloud combined with the security, performance, and cost-effectiveness of a private cloud. Download this MIT Technology Review paper to learn more about how all-flash storage is transforming the data center.

    Download

When you download a report, your information may be shared with the underwriters of that document.