Report: Gov. IT Business To Plunge, Except For DHS

While most of the top 20 IT budgets will be trimmed drastically, Input said the Department of Homeland Security's IT budget (DHS) will continue to grow.

"In the case of DHS, we are continuing to see major procurements develop there as they establish their own vehicles and advance major initiatives," said Ashlea Higgs, Input analyst, in a press release.

In all, the potential value of the top 20 IT government budgets is predicted to decline to $120 billion from the previous year's $240 billion total. Procurements for the DHS, the Army and the General Services Administration (GSA) account for half of the business in the top 20, the market research firm said.

"Vendors will likely be disappointed in the value of the top 20 opportunities in 2007," said Higgs. "But, despite lower values compared to last year's, each opportunity still has enough revenue potential to attract hundreds of vendors." She urged vendors to pursue governmental IT business aggressively to avoid being shut out of any agency's business for three to five years.