Federal Knowledge Management Spending Seen Rising 29 Percent by 2009

Broadened agency adoption, homeland security initiatives, consolidation of redundant systems drive steady growth  INPUT report

Broadened agency adoption, homeland security initiatives, consolidation of redundant systems drive steady growth  INPUT report

Reston, VA. — September 22, 2004 — The federal market for knowledge management solutions will grow from $850 million in fiscal year 2004 to almost $1.1 billion in 2009, a 29 percent increase in spending, according to a report released today by INPUT, a provider of government market intelligence.

Drivers behind the projected increase include 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, inter-agency knowledge base.

In its "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 for 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. For example, the administration and the Office of Management and Budget (OMB) are placing increasing pressures on federal agencies to improve performance by establishing metrics for IT investments. And agencies are being encouraged to consolidate redundant systems by sharing a single application between multiple agencies.

INPUT's analysis indicates that federal agencies are actively trying to meet OMB's goals. An analysis of the 2005 fiscal year 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.

"Growth will be driven in the outer years of this forecast as federal agencies become increasingly comfortable with the application of knowledge management technologies and as performance data is collected on implemented systems," said Campbell. "We expect knowledge management spending to be more widespread across numerous agencies as they focus on homeland security as well as complying with federal management objectives."

A summary of the report is available at http://km.input.com.