Government, retail IT spending to increase - Ars Technica Skip to content Ars Technica home Sections Forum Subscribe Search * AI * Biz & IT * Cars * Culture * Gaming * Health * Policy * Science * Security * Space * Tech * Feature * Reviews * AI * Biz & IT * Cars * Culture * Gaming * Health * Policy * Science * Security * Space * Tech Forum Subscribe Story text Size Small Standard Large Width * Standard Wide Links Standard Orange * Subscribers only Learn more Pin to story Theme * HyperLight * Day & Night * Dark * System Search Sign In Uncategorized Government, retail IT spending to increase Government IT spend is likely to lead a resurgence in 2004. Erik Kennedy – Jan 9, 2004 1:46 pm | 0 Text settings Story text Size Small Standard Large Width * Standard Wide Links Standard Orange * Subscribers only Learn more Minimize to nav There’s promising news for the tech economy, from what one might consider an unlikely source — the U.S. government. CNet is reporting that IDC, the ubiquitous research firm, is predicting a 5.8% IT spending increase for 2004 by the public sector. The article also suggests that spending on e-government projects could increase by more than 8%. Before you pop the champagne and place an order for a dozen Aerons and a Nerf cannon, bear in mind this doesn’t necessarily mean a return to 1999. As the article mentions, these gains don’t necessarily translate to new jobs. IDC also predicts that offshoring will continue to increase this year; in fact, the report suggests the amount of IT work offshored will double. On the bright side, the retail market is also expected to grow at a faster-than-average rate, thanks in large part to increased spending on RFID tags for inventory control. (Of course, some may not think of increasing dependence on RFID as a bright side, but somebody’s got to build them all.) As somebody who’s worked for the federal government for the past four years via a private contractor (in fact, today happens to be my last day), I can say that spending has been picking up somewhat. Projects that were planned months or even years ago are finally starting to see some funding, and some long-overdue upgrades are underway. With roughly half of the federal workforce expected to reach retirement age within the next five years, and with the government moving to outsource more of its IT activities to private contractors, the U.S. government, long considered a dead-end or boring career move for the technically inclined, could shape up to be one of the driving forces of a resurgent tech boom. Erik Kennedy Erik Kennedy 0 Comments Comments are closed. Prev story Next story Most Read * 1. I rented a car, and within hours, my driver's license was for sale * 2. Trump White House just tossed a grenade into international space relations * 3. OpenAI agents discussed ways to escape their sandbox on public wiki * 4. Pentagon rescinds new testosterone screening policy without explanation * 5. Meet the 2026 Ig Nobel Prize winners Customize Ars Technica has been separating the signal from the noise for over 25 years. With our unique combination of technical savvy and wide-ranging interest in the technological arts and sciences, Ars is the trusted source in a sea of information. After all, you don’t need to know everything, only what’s important. More from Ars * About Us * Staff Directory * Ars Newsletters * General FAQ * Posting Guidelines * AI Policy * RSS Feeds Contact * Contact us * Advertise with us * Reprints Manage Preferences © 2026 Condé Nast. All rights reserved. Use of and/or registration on any portion of this site constitutes acceptance of our User Agreement and Privacy Policy and Cookie Statement and Ars Technica Addendum and Your California Privacy Rights . Ars Technica may earn compensation on sales from links on this site. Read our affiliate link policy . The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of Condé Nast. Ad Choices