GSA Spending for IT to decline this year

Federal spending by the General Services Administration for information technology is expected to sink again in fiscal 2006, the second year in a row, according to one research firm's projections.

After achieving an all-time high in fiscal 2004, annual spending through GSA's multiple-award schedule contracts for IT products and services will decline 1 percent this year to $16.3 billion, following a 2 percent drop in fiscal 2005.
The downturn is driven by decreasing IT services sales on the GSA schedule. Input predicts a 5 percent decline in the IT schedule's services sales for fiscal 2006, which is a mirror image of the 5 percent annual growth expected for the federal IT market through fiscal 2011.