Federal agencies continue to have "skills gaps" among their IT workers that could push the government to increase its reliance on outsourcing over the next several years.

In a new report titled "Expanding E-Government, Partnering for a Results-Oriented Government", Karen Evans, U.S. administrator for e-government and information technology, cited the skills gaps in the federal IT workforce and called on government agencies to devise plans to close those gaps. Evans set a goal of eliminating the skills gap at half of all federal agencies by the end of the year.

There are now approximately 76,000 federal IT workers, and their typical age is between 46 and 50, according to a 2003 federal survey.

The nine-page White House report doesn"t outline exactly what IT skills are needed, although an earlier federal report cited the need for workers with specific technical skills working in areas such as Oracle databases and Cisco networking. Market research firm Input sees a clear increase in reliance on the private sector to meet some key government initiatives, such as e-government services.

In a report issued last week, Reston, Va.-based Input said spending on e-government efforts is expected to rise from US$4 billion in fiscal year 2004, to $6 billion by fiscal 2009. Input also reported last month that federal spending on IT outsourcing is expected to grow at a rate of 8.3 percent annually, from $11.7 billion last year to $17.4 billion in 2009.

Overall federal IT spending now totals about $60 billion annually.

Chris Campbell, the analyst who worked on the study, said the pressure to deliver results, coupled with an expected increase in retirements among federal IT workers, will likely boost the use of private contractors by the U.S. government. "They don"t have the IT skills needed," he said.

Among the initiatives the government is moving quickly to complete is a business gateway program that would create a central point for business information on regulatory compliance and federal programs. Campbell said spending on that program is expected to rise from $400,000 last year to more than $34 million this year.

Evans also noted that 70 percent of federal IT systems are now secure and said eight of the 26 agencies it tracks have improved IT management to a point where they can complete projects within 10 percent of the cost and time allotted for the work to be completed.