Federal knowledge management spending to increase 29% by 2009

EDP Weekly's IT Monitor, Oct 18, 2004

The federal market for knowledge management solutions will grow from $850 million in FY 2004 to almost $1.1 billion in FY 2009, a 29 percent increase in spending, according to a report released today by INPUT, the leading provider of government market intelligence. The projected increase is driven by heightened pressures to eliminate redundancies between agencies, to improve information sharing among agencies for improved homeland security purposes, and to improve overall agency performance by leveraging a broader, interagency knowledge base.

In the Federal Knowledge Management MarketView report, INPUT predicts homeland security initiatives, including a renewed emphasis on information sharing, will continue to drive the market. "Since September 11, knowledge management solutions have moved to the forefront of technology-related homeland security initiatives," said Chris Campbell, senior analyst, federal market analysis at INPUT. "Knowledge management solutions play a key role in helping tear down unwarranted information stovepipes within the federal government; and in facilitating the sharing of homeland security information with states, localities, and relevant private sector entities. Ultimately, improved information sharing government-wide will in turn help improve security within our borders."

Administration goals and federal management objectives also represent a significant driver of federal investments in knowledge management products and services, according to INPUT. The Administration and OMB are placing increasing pressures on federal agencies to improve performance by establishing metrics for IT investments. Agencies are also being encouraged to consolidate redundant systems by sharing a single application between multiple agencies. INPUT's analysis indicates that the federal agencies are actively trying to meet OMB's goals. An analysis of the FY2005 budget indicates that knowledge management spending is more diversified at the department level than in previous years, placing more emphasis on consolidating systems and improving inter/intra-agency knowledge sharing. INPUT predicts this trend in spending to continue over the next several years.