Homeland Security Will Drive Federal Spending On Knowledge Management

The government's need to gather and share intelligence because of its homeland-security mission will propel spending on knowledge-management software and services, according to a report the market-intelligence firm Input issued Wednesday.

Federal government spending on knowledge-management software and services will increase at a compound yearly growth rate of 9% to $1.3 billion in fiscal 2008 from $820 million this fiscal year.

The Department of Homeland Security will be the source of much of this spending, but other agencies, the State and Justice Departments among them, will have knowledge-management needs, says Input analyst Payton Smith. These tools will help federal agencies address new information-sharing requirements that the Office of Management and Budget has issued as part of its goal to eliminate redundant systems, Smith says.

According to Input's analysis, much of the growth in federal knowledge-management spending will involve the purchase of professional services, including consulting, design, and integration.