Government agencies are faced with tight IT budgets over the next 12 months as the US federal budget faces reductions.

February saw the creation of a federal IT budget for 2013 that reduced spending by 0.7 percent, with priorities focused on cyber security and increased progress on interaction between agencies and businesses.

Bill Loomis, managing director of IT focused investment banking firm Stifel Nicolaus, said that despite short term reductions, he expected increased IT spending by the government in the coming years, as IT analytics and mobile device capabilities were expanded upon.