Input forecasts lower long-term IT spending

The growth in spending, by market segment, is expected to average just 4.1 percent for equipment, 4.4 percent for software, 4.5 percent for professional services, 5.0 percent for communications and 5.9 percent for outsourcing. The new forecast contrasted with year-ago estimates where the growth in software spending, for example, was expected to grow an average of 5.7 percent, reflecting the increased use of COTS and a renewed vigilance to avoid customized software, Krouse said.OMB's continued push to improve performance is one of the driving forces behind the spending outlook, acknowledged Robert Shea, counselor to the OMB deputy director of management, at the conference.Shea noted OMB's Performance Assessment Rating Tool, among other initiatives, has helped realize more than $800 million a year in savings, with the prospect for more. "Last year we reduced improper payments by 17 percent, from $45 billion to $35 billion," he said.The trends in PART ratings don't necessarily determine budget decisions, Shea said. Ineffective programs have seen dramatic budget cuts, but even a program that is performing may not get additional funding if it isn't a priority, he said.Commenting on the news that OMB director Josh Bolten earlier in the day had been named White House chief of staff, Shea said the White House gains someone who is "focused on results. The president's management agenda will certainly live and have a strong proponent." Washington Technology's .