RESTON, Va., 29 March 2007. Information technology (IT) spending by the U.S. federal government will grow 5 percent annually from $79 billion in 2007 to $102 billion by 2012, according to the five-year Federal IT Market Forecast from INPUT.

Growth will be slow in 2007 and 2008 due to appropriations delays and discord between the priorities of the new Democratic-controlled Congress and the Bush Administration, say INPUT executives, but it will resume to a more historical norm in 2009.

In efforts to achieve long-term efficiencies, federal agencies will focus spending on system consolidation and modernization initiatives to reduce IT infrastructure management costs and free money for mission oriented applications.

Annually, INPUT sizes and forecasts the market for IT products and services in the U.S. Federal Government. Its forecast includes spending by organizations within the three branches of government, quasi-government agencies, as well as the intelligence community.