Debt ceiling deal impacts IT budgets
Summary
Notably, the IRS projects no impact on its short-term plans from the $21.4 billion budget cut outlined in the debt ceiling agreement. These funds will continue to support the hiring of new personnel and modernization of legacy IT systems, signifying a clear opportunity for IT contractors seeking to do business with the IRS. The Department of Education, for instance, is expected to experience a 44 percent decrease in its IT budget, while Housing and Urban Development, Treasury, Labor, Interior, and GSA also face significant cuts. They must stay vigilant to shifting spending patterns, refocus their sales efforts towards departments with budget increases, and most importantly, offer solutions that maximize an agency’s IT investment. Grier Eagan is senior market intelligence analyst for immixGroup, the public sector business of Arrow Electronics.